Don't Expect Positive Earnings or Cashflow.....yetBruce Linton has said on many occassions that he is not looking to make the company profitable and cash positive today but aggressively invest in both the medical and recreational brands both in Canada and abroad in preparation for the next level. He has regularly been quoted on creating a mega brand in this recreational market through Tweed and not concerning himself with today's expectaions. Look for lowering of production costs, implementation of scale as well as continued patient growth should be all that matters next Monday
As much as they want to deliver postive growth they also want to heavily invest in what they have. As Bezos did when he diversified from books into cds, then dvds then into an everything store with Amazon, Linton is looking to create the everything brand in the marijuana market both recreational and medical. As he said in a recent Walrus article i want to be to cannabis prohibition change what Seagrams was to alcohol prohibition changes.
He is on the right track just a matter of making sure he does not get caught in the trap of growing to quickly and aggressively losing out everywhere as they become a master of nothing.
I do believe the strategy makes sense just the execution and vision without being overly zealous with ego will be this stocks key to success. I continue to have limited downside concerns in the short term but beleive trying to be too much might hurt this stock in the long term