RE:a questionMgmt's no guidance rule is incompetent. When co. was posting big revenues in 2019 they should have also been cautioning that those revenues were unlikely to continue due to stalled retail rollout by Ontario and Quebec. Also, I seen other co.s issue profit warnings ahead of earnings releases becasue market is expecting too much.
amateurhour wrote: Hey everyone. I wanted to take a different route away from the name-calling and hot takes and ask a question.
Before I do, I am going to assume that the sales numbers for LABS were lower throughout the quarter, so there wasn't a surprise "ah-ha!" moment about their lack of sales.
Would you fellow shareholders find it more palatable if they gave some concrete warning signs of lower sales throughout Q3? I agree it was a rough quarter. The Canadian market is currently oversaturated with similar products which doesn't bode well for them. Not to make excuses, but facts are facts: This company is operating during a pandemic in an industry that is in its legislative infancy. Furthermore, they are trying to do this in a number of countries, simultaneously. That in itself is a bit of a zoo. They have a full team in Australia just handling that. They are casting a seriously wide net. LABS has a lot of the structural framework to create their products, however their issues clearly lie in the demand of their products and the supply-chain bottlenecks that can throw a wrench in it. It's not like they're making janky distillates that are killing people. They need to sell.
This is not as simple as if it was, say, beer or any other known product. Each country is also navigating, creating and modifying their own legal frameworks. To adhere to each countries' standards will take time, in addition to the speed of governmental beauracracy. I'm not saying don't be frustrated with their results, merely keep that in mind. LABS will be ready to hit the ground running once these barriers are removed.
I advise everyone to listen to the Q3 call. They called a spade a spade. I know many of you are frustrated that their SP hasn't bounced back, especially those who bought over $1.50. If you look at the analysts that cover LABS, the one at PI is the only one to kind of be close. The rest are a bit inflated, in my opinion.
If you believe in this company, average down, or simply wait. If not, sell. I understand that the bickering is a product of frustration due to the stocks' performance, but you picked it. If you cannnot withstand these waves, don't invest in individual stocks. Buy some mutual funds and relax.
LABS has cash. They have facilities. They have contracts. The product they make is high quality. I believe it will bounce back, albeit not immediately to the SP it had in its prime. This likely will happen throughout 2021. I'm open to any comments, or just call me an idiot.