Lowell Farms Inc C.LOWL

Question of margins

[Benedictus]

The problem with this report and one of George's more significant responses on the call is around gross margins. He really didn't offer any specific margin profile for each of the segments when asked. I've been following this company since before the Geronimo recap and such lack of visibility is a new development. It suggests an industry and business in major flux with some concerning headwinds. Q4 Guidance of $15 - 17M is excellent as it shows LFS and cpg is making up for the B2B bulk shortfall but without any ballpark of expected margins investors are left in the dark on how much of that falls to the bottom line. Cash burn of $10M was also a negative surprise. I think after the dust settles, .60 - .70 is possible (or .50 - .57 for LOWLF). That is where significant support appears on the weekly, which equates  to around a US market cap of 165M or a psr of 2.5. I'm not long or short but monitoring for a potential trade.

[DeepCove11]

Our only hope short term is to get a boost from all the action coming soon in Washington. They do need to get this sorted out as this company has a lot of potential if they do it right!

[Benedictus]

As expected the price has continued to deteriorate. I think many are unaware of the share structure and have not factored that into their understanding of the company's valuation and how it stacks up to peers. I still think LOWLF can fall into the .40s unless a major catalyst occurs. The sector has been one of the worst performers in the entire market this year so at any moment opportunist