GoBlue2016 wrote: MLfinancials wrote: Maybe because LEAF only has 12.9M Cash and no mention of inventory and their financial statements were all non IFRS and didn't provide full statements.
Meanwhile Canopy is completely transparent, 100M in Cash, 45M in inventory. Canopy is the sleeping giant and it will be awoken 2018.
ML
You might want to read the audit opinion. Fully IFRS compliant.
Notes speak to inventory, which is managed 1000 times better than CGCs inventory. Or did you miss their $17 million writedown.
Transparent. Really. Any mention of their issue processing bud from harvest. With FG inventory decreasing to a 23 day supply.
And please let everyone know your thoughts on the below. If you have ever seen a CEO step on a rake and it hit in the face this is it.
Linton on Gain on Biologicals
From Financial Post article March 24, 2017. (A week before year end)
https://www.google.ca/amp/business.financialpost.com/commodities/agriculture/biological-assets-accounting-rules-are-adding-haze-to-marijuana-company-financials/wcm/f495f2d0-9dc0-4b25-8913-e745ce727962/amp
Canopy CEO Bruce Linton said there’s no benefit for a company in overstating the value of their biological assets because being too liberal with assumptions could lead to a future period with non-matching inventory — and markets don’t take kindly to that.
“I thought IFRS was the craziest thing I had to learn about in great detail but it actually is sensible — it creates a motive to be careful as hell not to overstate,” he said.
“You’re incentivized as any reasonable party to try and be as conservative as you can because if all the value you’re reporting in your biological assets — the things growing — if it doesn’t turn up in your inventory, you actually now have to do reverse accounting and say: ‘Oh, we didn’t have all that’.”
I am pretty sure Linton said to expect the SP to go down.