RE:After poor earningsGhostonscreen wrote: Of $2.9 million for the quarter ending June 30,
expect a huge gap down in the morning
Earning estimates were $6 million
with a low of $3.2 million ( check Yahoo Finance)
Closing price was $3.64
I expect a 20% drop in the next few days.
Forward guidance from companies in an unproven industry helps nonsensical analysts inject a dose of reality into their forecasts. That`s the problem with projections. Analysts continually set skewed observations, issue a projection , and they all fail. ACB is one of the only companies who has put out forward guidance and it was well received- they picked up on this game . These stocks all have their peaks and valleys , mostly caused by these fallible analysts who seem to be self serving and representing higher interests. Obvious , all pot stocks are either starting or are trying to rein in operating costs . In this case here, it is at startup phase. Losses are to be expected with millions going into construction which is near completion.
To those who scoff at the idea of organic- that is a niche market. Appeasing niche markets has proven lucrative in many other industries. Unique , building a a loyal following , branding, marketing etc.
There will be no price increase due to organic vs chemical fertilizer. Organic fertilizer is comprised of vegetable waste and animal waste. They also extend to glacial rock dust and gypsum that provide nutrients to the plants. Same as is used for growing corn and a myriad of other crops. The price will not be more than chemical laden weed. Of course , the BAHAHAHA guy knew all that right?
VM