Auxley, the good and the badI was an early investor into XLY, and have bought and sold my shares several times as the stock price has jumped up and down. I most bought in the $0.75-0.80 range and sold in the $1.20-1.50 range and made a profit several times. I last sold my shares, for a slight loss, after the Q3 2018 financials. This was when the company made it clear that they we not really going to participate in Cannibias 1.0 and focus thier efforts on the 2.0 launch. I actually thought this was a wise move but decided to sell because I correctly thought the market would act negatively towards any cannibias company who did not start seeing significant revenues start coming in. I started buying in again mid Oct at $0.75 and averaged down a couple weeks ago to get my cost per share to $0.67.
I 100% agree with many of the things the "bashers" have said on these boards. XLY has make several misteps along the way. They have a few deals that have gone south and they did some financing deals that although perfectly legal were a bit on the shady side. But sometimes start ups need to take cash from where they can when they can to survive.
There are valid reasons why a company who have mostly raised money in the $1.40-1.50 per share range is sitting at $0.66 per share today.
But along the way XLY has also made some really good moves, Dosecann, KGK, Kolab, Robinsons and the joint venture with Quiring were all great moves.
If you read the MD&A from Q3 you can see that most of the deals they have made are close to fully funded. This means that cash burn will drop significantly in 2020 compared to the last 2 years. Plus the move to focus on 2.0 products has allowed them to be the largest product provided our of the gate. XLY has more 2.0 products on the shelves then then any other company right now. In ON they accounted for 20 of the 59 2.0 products that were available for sale in December. By every account I have heard 2.0 products are getting sold out within hours or days of arriving accross the country. Dosecann had hired about 45 new staff in the past two months and most employees are working 16 hour days right now just to try to keep up with demand for there products as best they can.
I believe that has made enough misteps along the way that the stock price in not going to move on speculation it is going to have to be supported by revenues. We might see share prices go up along with the cannibias market as a whole over the next couple months, but it will be when the Q4 results are out that things should either fly or sink. The Q4 results will only have about 2 weeks worth of 2.0 product sales so it will be a very small sample size but it should be enough to show that this company has a path to positive EBDITA by the end of 2020. Companies can overcome mistakes and still provide value to shareholders. I think $1.00 by the end of March and $2.00 by the end of 2020 are very reasonable targets for XLY.