RE:Will CGC rip off the GoB bandage in Q4??Blue, your analysis is correct and as you know we’re on the same page, enjoying the analysis and working through the numbers. This is Stepps by the way, as since I changed my laptop on Friday I can’t get back into that pen name.
Inventories as per the Market Data for the sector released by the Government shows sales in Q1 2017 up from Q4 2016 of 5,134kgs to 5,836kgs or 13.7%. Inventories of Dried MJ at end of Q4 were 18,087 kgs and increased to only 18,140kg at March 31st, 2017. Hence I see no room for any significant increase for WEED’s inventory. If they also are having one or more of production, quality and inventory issues, I have over 1,500 kgs missing in the 9 months to December 31, 2016, and they have no way of booking any material fair value increment it means ….. looks ugly!
The PR campaign is to keep us all focused on the long term, absolutely correct too IMO, I am also a WEED shareholder, but Tuesday will not be pretty and they know it, hence the PR.
National Post had a good article on IFRS dated March 24th, 2017, actually IAS 41 is the one to read for those who want to really get into it.
With average sales price in Q3 of $7.36 and Inventory of dried MJ valued at $5.03 there is only $2.33 of GM per Kilo to realize on each kg sold.
I wish it would stop raining here.
GLTA