RE:RE:RE:RE:The Overheadgreat points bandit69,, really appreciate your posts and points on Cubic Farms....
it'll be interesting to see how things go for CUB going forwards.. i did a tour of Bevo Agro (pre-Zenabis) and the prototype Cubic Farm systems were housed at Bevo in Langley BC (in transport trailers/containers).... very interesting technology/units.... i sold out of Bevo prior to the "Zenabis deal" and subsequent spin-out of Cubic Farms (as Bevo had invested considerable time and money into Cubic Farms and spun CUB out with the "Zenabis deal").....
i have since followed CUB but never invested.... this "shakeup" in management i think should have been done awhile back.... a number of the players from CUB (from the Bevo days) stayed on and i think they needed others to guide CUB as a public company.....
i continue to watch from the sidelines and might take a position...... appreciate all of your posts and points bandit69
bandit69 wrote: RandomGuy25 wrote: Bandit,
What are the things that would make you a buyer versus a fence sitter?
What would you like to see in their updates going forward?
Below what valuation do you think they will receive a takeover offer?
Thanks
Hi Randomguy25,
I like to see strong financial health for any business so the same applies here. I've written ad nauseam here about their cash burn rate since early last year and no sales to support it so to see a focus on it now is a good thing and they likely didn't have much choice but to do so.
I like to see cash to sustain operations and fund future growth so I am assuming that they've looked at the numbers, laid off accordingly and then said these are our expenses and this is what we have coming in soon and that's how they came up with the recent loan amount. It could be the opposite though, it could have been "we can only get 8MM so we have to lay off accordingly". Maybe. Not sure. But I have more confidence now that they have what I think is better management, some liquidity, lower overhead and eyes are on the ball, so it would seem. I like the fact there seems to be focus now and not all of these meaningless irons in the fire that produced nothing. The cost will be less and efficiencies greater. In theory anyway. Nonethless, I will likely need to see Q3 numbers before doing anything. I couldn't comment on what the valuation might be because there are really no revenues and earnings to look at. I can only say it is worth what someone is willing to pay.
Updates on project status and business direction and not unrealistic fluffy feel good promises are a good start to communications. Actually hitting described targets and project finish dates (i.e. doing what they say they will do). Fluff is just that, fluff. It's not reality but reality has hit. There were many comments made in interviews in regards to too many topics to write about here now (I wrote a lot about these said comments along the way) and I can't think of one that was successfully achieved.
Personally, I think the marketcap is still too high for today's conditions and I am not a buyer yet. I mean they have rightfully downsized and have some liquidity which is good but the loan has to be serviced and that can only really be done by sales and execution. Unless they start equity financing which is just robbing Peter to pay Paul.