RE:indus future brightI’ve listened to the cc and looked at the financials. Numerous pros and cons to Indus at this juncture:
pros
current psr is around .36 based on current run rate sales, which is the cheapest I’ve seen in this sector by far. With revs potentially doubling by this time next year and with market multiples possibly normalizing, the sp could move up dramatically.
these guys have already been growing successfully so as the additional greenhouse buildout comes online this will certainly go a long way to removing reliance on questionable 3rd party product and securing significant top and bottom line growth.
There is a whole lot of increased revenue runway with their successful brands and as they bring w vapes into the fold.
Low float in a very bloated float sector.
cons
As this company continues to grow the company needs a strong CFO and they announced no real plan in terms of replacing Maloney aside from she “will help with the transition”.
Rob and Mark have a lot to prove after this latest quarter. If you listen to Q2 cc, then you’d feel completely blindsided by just how bad Q3 turned out to be. Yes, there were quality and supply issues that may have been out of their hands but the significant earnings miss and management shakeup was mishandled and left a bad taste all around. Because of this there is currently a big question of credibility hanging over current management imo.
The cash on hand is probably not enough to meet all the capex and opex and the sp is acting like a pp is imminent.
Having said all that, I’ve added at these levels and am hoping they execute as stated.