RE:RE:RE:RE:Negative Gross Margins = FIREIt is looking better every week joh but shorts should wait and see what the numbers are for the quarter....it looks like there is going to be a very different FIREmenu presence on shelves country wide by month's, the next couple of weeks are going to be quite interesting.
It is not going to take long to have the CPG implementation paid for and more than paying it's way going forward...the changes over the last 6mos show just how close we have been to this level production and growth for far too long. But probably most impressive is, as you state, just how clean and tight operations are going to be going into FY2021.
The state of affairs that FIRE will be in with sales north of $40mil per quarter going forward are going to generate increasing opportunity to paydown debt, buy back shares etc along with funding for expansion as required. Add the right sizing of the rest sector for some time yet and FIRE is going to look that much better. This is Beena's first day on the job, hard to see anything but much better once she gets comfortable and really rolls her sleeves up, JMHO...Opt
johnale wrote: I guess I'm the one who has to break it to
to you -
but if you actually read the report - the only reason gross margin was negative was bc of impairment charges to trim and flower as they "right sized" their rec pricing to reflect the market.
actual gross margin was about 37% adjusted - even with no vapes, pre rolls, oils, rosin, ect which will raise ASP.
As well - they expect operating costs to decrease even further in q4 with operating eficiencies (read the release) and basically zero capital costs.
They expect better than 50% gross margin going forward.
which will make them very profitable as they grow revenues.
Your shorting one of the winners in the sector -
good luck with that -