RE:RE:RE:RE:RE:Any chance for recovery.MagicBeans wrote: I beg to differ. I am not taking advice from an investor who sold at 25 % profit on this raging bull. Seems a bit challenged in understanding this investment in CGC if you ask me.
Listen the dilution has resulted in the acquistion of Bedrocan, payment on assets like Tweed farms to expand the growing capacity and also acquistions of MedCannAccess.
I rather think these types of acquistions and expansions enhance the profitability and acceptance of CGC as the leader in this industry. The issuance of new shares for these expenditures are not an impairment but rather a beneficial and profitable use of market capital. Without spending on these types of acquistions, shareholders would not be able to tout CGC as the leader of the MJ industry in Canada. Subsequently, being the recognizable PREMIUM investment in the space. The enhanced multiples and interest by investors in industry leaders is well known and exists in every type of industry. Investors pay more for quality names. You are not a quality name by sitting on your hands doing nothing. Nope, instead CGC has aggresively pursued and championed a multi brand diverse company that has tweaked investors appetites.
Expanding share counts to follow this business plan is the right thing to do and it is a BENEFIT to shareholders not a hindrance.
The cash burn rate has been coming down as you well know and soon cash flow positive will occur even while operating in a TINY MMJ market. To be able to reach that milestone before REC even becomes reality is EXCEPTIONAL and very investable. Any competitor in this industry is going to have all the same costs and months of financial losses if they want to establish themselves as a player in the MMJ industry or the REC market. But not all competitors are going to sell at a premium like CGC does and will even more so as they reach profitability.
It is not bad business planning at all. It is outstanding vision in knowing where to take CGC and how to build a multi brand market leader. Investors can invest confidantly knowing they are buying a quality name.
The short term reality is this companys market cap is far in excess of the current financials because investors are buying the future not the present. Buying the present two years from now will cost far more than 2 or 3 dollars a share so its important to get in early before all the ducks are in order if you believe CGC is going to be the BOSS.
Wait for the earning report. It is going to tell you
1, when the cash burn rate is going to come down, 2 when cash flow positive will occur, 3, When the real profit will be made(not through inventory book cooking.
I have a very conflicted views about cgc. On ond hand, it is promising, on the other hand, the book looks aweful. cgc is still not out of woods, if the recreational market would not be legalized in Canada in 24 months, cgc will likely need to issue 50M more shares to stay alive. You need the management to add per share value. So far, we have not seen this happening.
So, what we are doing right now is not really investing but speculating.
I believe cgc investor relation is looking at my post. Yes, all the deluting so far are to the benifit of CEO and the founders, not to the retail investors on this forum. You need to do something for us!