Ventura Cannabis and Wellness Corp CVHIF

Cash flow positive | year end run up

[Xiawen13]

Once again, I ve decided to have a cold analytical look at our financials. Remember I am heavily  in in this stock.. average .17 as of today

Whatever way you calculate it, through cash flow statement or through income statement, we are basically 2,4MIL loss during Q2.  My opinion and calculation make me believe we have approx 6,3MIL of actual income that flew into our account during Q2 compare to about 8,7MIL exiting.

So what will become of that 2,4MIL loss during Q3?  Management said this summer they expect to start achieving 25% edidta during Q3.  More recently they said they expected to become operating cash flow positive during second half of fiscal 2017 (so during Q3 and Q4 of this year). So basically management is telling us Convalo will be able to cover that 2,4 MIL gap..  How is it possible?

My theory is: maybe the revenu of the 5 new facilities are really starting to flow in now (Q3), whereas the expenses associated with these facilities which were already draining our money during Q2, will stabilize. So that would mean our increase in revenu during Q3 would not be associated with a comparable increase in expenses. Also, if you remove one time items (544 in cost of service, 930 start up cost and 460 purchase of property) and if they do not occur again this quarter, we save 1,9MIL. That put us very close to our goal but we all know some one time item will occur.  We definitely need a significant increase in revenu in the income statement, and also in the cash flow statement, to achieve profit or operating cash flow. I would estimate that revenu of 9,2MIL in the income statement would allow us to be winner, if there are no really bad surprises in the expenses

Now a small prediction just for fun: I ve checked a couple a underperforming penny stock history.  There is s strong tendency for some of them to increase dramatically during the last two weeks of the year (probably people buying back after tax loss). So I am betting on a CXV doubling from its low before year end.. ALL THIS COMMENT ABOVE IS JUST AN OPINION PLEASE READ FINANCIALS AND DO YOUR OWN DD