RE:XLY should be rising in price...What's your thesis behind this price target? Momentum? Value?
The only reason this company has this market cap is because they are in the weed sector. They have no sales, large capex and SGA costs and writedowns. -67M!! 20M of share based payments, 7 M in interest cost and 9M in impairments, 5.5M on settlement of financial liabilities...
Also the dilution is real. 800M S/O fully diluted. They will need to continue to invest heavily to have a shot at having any market share in a very competitive space with commodity pricing. Atleast they are trying to differentiate with derivative products.
Also, I'm very curious to know what really happened with FSD Pharma. Regardless which party was responsible it doesn't look very professional.
GLTA but I wouldnt touch this with a 10 ft pole