RE:RE:RE:RE:RE:RE:RE:Not next Quarter, but next Next quarterDragonball;
Ny apologies as it was indeed another member that had posted about Aurora's inability to grow their sales revenue, as evident in the original post below.
As for the change in accounting practices, it would appear that all of the other LP's, including Canopy, also uses this same type of accounting practices. Like you, I am not a fan of these so-called "unrealized gains" from investments and biologival assets that they toss into their income statements. That is why at this early stage of the game, I am much more interested in the top line sales revenue number above anything else. Especially with all of the monkeying around these companies do in order to get to their so-called earnings which I am ignoring at this stage of the game.
The only thing that I get from Aurora's positive earnings (i.e. profits) is that they have (so far) been more astute with their investments or partnerships than Canopy in terms of their paper gains to the end of September. Doubt that they will look so good and in fact, should be showing losses with the way they market has been going over the past 2 months.
Right now, the most important numbers are the top line sales revenues and for these LP's to stop acting like drunken sailors when it comes to their outrageous General and Admin expenses.
DragonBaII wrote: I never said anything about Aurora not being unable to grow their revenue by whatever amount. Someone else may have mentioned that. I have not judged Aurora on how much they can grow their revenue by but I have in the past made statements about how much they can grow their production capacity by. I’d dont care if Canopy reaches 200 million in next earnings. That was just an estimate made by Bruce at the time. Whatever it is it is going to be huge.
Aurora changed accounting practices making their earnings appear better than they were. This may hurt them on their next earnings release. Their earnings showed as way higher than their revenue. That should make it clear that something is off
longonMJ wrote: In full agreement with you that Canopy will
EVENTUALLY go from quarterly sales of $23M up to $200M. But it's key to note the emphasis on the word "eventually". Like you said about Aurora, it's also a clear definition of lunacy to think that Canopy will have a near 900% increase in sales now that legalization is in place. Heck, they can't even get the product to the store shelves, let alone into the hands of the customers.
Likewise, I am not sure why you do not give the same benefit of doubt with respect to the timing eventualityfactor to Aurora that you gave to Canopy. Their current production is based only upon their much smaller Aurora Mountain grow facility and does not yet include any of their Sky facilities which will eventually come on line or their huge tracts of lands down in South America acquired through their recent acquisition of ICC Labs.
All of this will take time as clearly evident by the fact that Canopy's sales only went up by 55% on a YOY basis for this quarter and actually went down on a sequential quarter to quarter basis. Aurora's growth definitely looked a lot better as they was able to grow their sales by well over 300% YOY for this quarter on a pro forma basis and came in about 50% higher than Canopy's sales numbers.
Bottom-line: I sincerely believe that both companies will
eventually hit their stated target expections, but just not right now.
DragonBaII wrote: of course Canopy can go from twenty three million to 200 million. They already have the product capacity. It may not be that high by the time we hope but it will
eventually be way higher than that.
longonMJ wrote: I believe all LP's including Canopy, Aurora, Aphria, etc. will ALL have huge problems coming anywhere close to their expectations. Especially when they don't even have a proper supply chain managment system to move product efficeintly from the LP's to the retailers in place yet.
Although you seem to have issues with just Aurora meeting their targets, do you really believe that Canopy can truly go from $23M quarterly sales up to the $200M quarterly sales that Linton says they will have no problem hitting once legalization is in place. Believe me, they will come up with all sorts of excuses next quarter as to why they were not able to come anywhere close to their targeted quarterly sales numbers.
catchascatchcan wrote: You bring up a good point. ACB produced 4,996KGs last quarter, yet they boast of 150,000KG production in the short term. Investors are to believe that they are going to grow their production by 750%? That is the definition of lunacy mentality. We have the revenue potential of 300% of ACB today given our harvests. If you think that WEED is experiencing growing pains (pun intended), wait until the next few quarters come out! We will be the tallest dwarf if nothing else. Growing potential and inventory will mean that we wipe the floor with ACB and APH for the next 4 - 8 quarters at a minimum. Even if ACB is shortsighted and blows through their inventory to juice their numbers for the Oct-Dec quarter, they won't be able to replenish the supply lines and will get smoked the following quarter. WEEDs management know well enough, that if rec quarters don't grow sequentially, the markets will be brutal. It'll be a slower ramp than anyone wants, but we will hit $500M in sales in the medium term. While it's still not enormous given the market cap, it is not peanuts either. When we hit $1B per year, we will have arrived. GLTA