Earnings SZN GuideIf anyone is looking for an indication of whether a company has a strong probability of capturing market share, you will have to look at their non-cash working capital outflow for the quarter. q2-q3 should have balances within 100-200m dollar range.
Afterwards look at the md&a. Inventory and biological assets should account for 60%+ of the total balance. That indicates that they are ramping up production to meet the demand.
You guys also need to start doing your math backwards instead of forwards. For example 4.3m ft2 licensed facility should produce an estimated 430,000kg of pot. Great news right! Because that means that they will be producing billions upon billions of revenue.
Now lets look at the math backwards.
CGC cost per gram for pre and post harvest is $1.25
So it means that they will FIRST need to spend 538m to produce at full capacity. That's 134m per quarter
That figure does not even include all in costs. And thats in the range of 1b and 200m per quarter
You guys spend so much time figuring out future revenues and neglect to ask the most basic functions of the business. Do you even have the cash to produce at a high volume?