GREY:CHALF - Post by User
Comment by
SenorLegumeon Jul 20, 2017 11:21am
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Post# 26490572
RE:For Those Against Chalice
RE:For Those Against ChaliceI apologize for being snappy.
I will give this thought. There are moments where I share the excitement Chalice offers to the conglomerate. Very interesting and thoughtful approach that if executed profitably is exportable to other States. That would be a great benefit to Golden Leaf if there are cash flows there. Problem with cash flow is it is negative right now and looks to continue so.
Chalice margins are going to be very important and cash flow or some definite numbers required to properly base an analysis on. On the surface, I agree, looks great other than the price paid. Paying 1.25 x revenue to Chalice owner on the backend instead of profit, not cool. Any company can sell the furniture and all products to gain large revenues at a loss. Salesman love that if on commissions. However, profit margin and cash flow is what future payment could have been tied too. That requires Chalice to price and move product profitably. This has only revenue incentive. Wrong way to do that.
Stuck now so must be monitored on above margins and cash flow metrics in the future.
Companies traditionally put out way more detail on acquistions financial metrics. A new era is dawing for Golden Leaf. Investors need to answer the past before they move forward. It does not go away.
Clean house. There is still some parts of GLH remaining. That is an issue IMO.