RE:RE:RE:California is still strugglinganything under 200 million shares out is fine if revenues come in as stated.
Benedictus wrote: thanks for sharing your insights hempdoc, this sector is definitely evolving and as you say, the well-capitalzied sharks really have the wind at their backs in terms of execution within the space. Your mention of a possible upcoming financing for LDS may very well be true and the cause of this precipitous drop in the stock. I have seen it time and again... the mysterious 30 - 40% plummenting stock price right before a pp is announced. Hopefully this is not the case and LDS is able to obtain enough biomass currently to be cashflow positive month over month. With 136M shares out, new options issued for mgt in the near future and a possible pp at these depressed prices would bloat the outstanding shares to a level where I would be inclined to reduce my exposure in LDS given any shortterm re-rating of the stock. It seems so many investors/speculators in the space are emphasizing the P/S ratios attained by the Canadian companies but that's a legal market, so that is an apples to oranges comparison. Aside from a reemerging speculative frenzy coming back into the US MJ markets, I think it may be a fools game to apply the generous PSR's given to the perceived winners in the Canadian MJ space. My concern is that as long as it is federally illegal, the bottom line will be the emphasis, not the top line. PSRs may be far more constrained and PE's be the true tell of the real winners. And obviously the more bloated the share count the harder it is to increase that bottom line number. Just thinking out loud and am I completely open to feedback/criticism. In spite of the numerous jaded bashers that frequent this board, hopefully we are all here to learn and discuss all aspects of this opportunity.
Best to all!