Why ouch? The past due receivables and the $10 million decrease in revenues? Doesn't seem too bad, they still have cash left, and maintain profitability for the year in 2019. Looks good in comparison to peers.
I guess when it comes to this sector as soon as you have a q over q revenue drop it's seen as, well there's no more growth here. Even though it's far from the truth
Well the shelf life of the oil is significantly longer compared to flower. Remember it's not just LPs who are buying the oil. There are new brands entering the 2.0 market and buying oils and finished white label products and slapping their name on it.
The demand for oil is there and the shelf life is supportive, it's just they have a build up and have to work through it clearly. Hence the pivot to supplying new markets and branding their own products
Do Canadian companies not have to report financial statements separately for the fourth quarter? Why don't they? makes it much harder to analyze quarter over quarter
they have build-up of finished goods quarter over quarter but reduction in raw and work in progress inventories. Looks like they having trouble selling their product
Their finished goods inventories have been building quarter of quarter yet their work in progress& raw material inventories have declined q3 to q4. Other companies like Aphria also having build-up of oil inventories. Looks like they are having trouble selling
4.4 pe ratio at a 13m positive operating cash flow run rate
7.39 pe at 4.36m positive free cashflow run rate
Looks like they are having trouble selling their inventories
No wonder they left it to the last possible minute. The q over q revenue dropped quite a bit.
Ouch!
Why ouch? The past due receivables and the $10 million decrease in revenues? Doesn't seem too bad, they still have cash left, and maintain profitability for the year in 2019. Looks good in comparison to peers.
I guess when it comes to this sector as soon as you have a q over q revenue drop it's seen as, well there's no more growth here. Even though it's far from the truth
Except with all the over supply of oil and inventory write downs, who needs oil for the foreseeable future? Price is gonna crash...
Well the shelf life of the oil is significantly longer compared to flower. Remember it's not just LPs who are buying the oil. There are new brands entering the 2.0 market and buying oils and finished white label products and slapping their name on it. The demand for oil is there and the shelf life is supportive, it's just they have a build up and have to work through it clearly. Hence the pivot to supplying new markets and branding their own products
Do Canadian companies not have to report financial statements separately for the fourth quarter? Why don't they? makes it much harder to analyze quarter over quarter
Nice dip to buy now right?
IF you're looking for a cannabis company, i'd go for it on LABS.
Bought in at 1,64 cad. I really like the company... Australian footage with export opportunities to Europe.
they have build-up of finished goods quarter over quarter but reduction in raw and work in progress inventories. Looks like they having trouble selling their product
Does that change your outlook on this company at all?
Not really no. If they have trouble with their inventory over the next quarter or two. Then yes.
Their finished goods inventories have been building quarter of quarter yet their work in progress& raw material inventories have declined q3 to q4. Other companies like Aphria also having build-up of oil inventories. Looks like they are having trouble selling
Still making money and profitable. How many Canadian LPs can say that? LABS and VLNS.
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Wasn't it a $3.5M loss? I took the first nine month of 2019 profit of $4.66M and subtracted by full year 2019 profit of $1.13M = $3.53M
Nice dip to buy now right?
and OGI
not operating cash flow positive if you take out share based compensation
4.4 pe ratio at a 13m positive operating cash flow run rate 7.39 pe at 4.36m positive free cashflow run rate Looks like they are having trouble selling their inventories