More Massive Gains Today for Pot Stocks....Except VIBEThe cannabis sector is enjoying two days of massive gains due to the HHS recommendation to reschedule cannabis as a Schedule III drug in the US. If the DEA follows through on this recommendation it will have enormous financial impact on US MSOs like CURA, TRUL, CL and GTII. The restrictive 280E tax provision will no longer apply to these companies. Profits will soar and stock prices will rise.
So why did VIBE drop 37% yesterday on this news ? Because it reported Q2 2023 financials that were terrible to say the least. Most US MSOs are up another 20% today after 20% gains yesterday. VIBE is flat at C$0.05 close to its all time low.
The last two days and Q2 2023 financials show what an abysmal failure this company has been.
* revenue for this quarter was $3.69M compared to $5.72M in the same period last year. That is decline of over 36% YOY.
* Net loss was $1.4M compared to a loss of $655K in the same period last year.
* the illicit black market is still rampant in California and that is eating into revenue
* sate taxes are exorbinant and handcuffing state MSOs like VIBE
* large MSOs like CURA and TRUL have closed all their retail outlets in California and moved out of the state. That is a big RED flag.
* there are no buyers for VIBE's stock just look at daily volumes. Most of the buys are by brokerage ITG84 that is buying back shares under a misguided NCIB. This at a time when the company is bleeding money and has a negative cashflow.
I could go on and on but it is obvious from the last two dfays of trading activity that VIBE is not on anyone's radar and is destined for extinction.
As always this is just my educated personal opinion. DYODD
VCAN 2.0