Newstrike Brands Ltd NWKRF

NEUTRAL ON FINANCIALS

[goldman777]

A loss is a loss, if it`s a red day tomorrow on the DOW we will get punished. A soft launch and a few bugs will need to get ironed out - mainly the lower than projected yields. Still $4 million in initial sales is good and if HIP can produce the goods without further set backs to quality then the reward will be at the end of the rainbow after a few quarters of solid financials. Now, they are still in the big spending phase of expansion and it looks like the cash reserves are down about 10% since they reported last, however if we are and can continue to generate roughly $4 million a month in revenue i think the market will over look set backs - Rome wasn`t built in a day, it is concerning that for what ever reason they have had problems with the yields, now we have an additional 90 million shares coming out of escrow, i will assume this is part of the last cash raise...now are these already accounted for in the TSO or will we see further dilution. Anyone with insights on this please comment. So, IMHO - not a stellar financial report, but I think few here expected bells and whistles - it`s still early and at least the company has shown that it can make money - now bring on the expansion and increased production and lets see another zero at the end of that sales figure. My concern is general market sentiment and this can not be over looked because if the broader indices tank this sector will bleed red. i think most were able to peg the big one day rally after the mid-terms, it was kind of a no brainer to position your self for a good green day once all that uncertainty left the room - from a traders point of view anyways. Add the FED decision on interest rates and I would have thought another strong green day was in the books for today, but the market finished pretty neutral. I think we see a big sell off across the board for Friday and the true believers here who are saying they will line up to strengthen their position just might get that chance. I fully expect the other producers to report the same lack luster results, we will see s/p erosion in this sector - this is my opinion only. What we write here has absolutely no bearing on s/p direction nor am I trying to influence any one - just my 2 cents worth. We will all know tomorrow. GLTA