RE:RE:RE:RE:RE:RE:RE:RE:RE:Looking attractive hereFrancois, I appreciate you taking the time to share your correspondence with Atul.
I am only going by memory here since I can't seem to find a full copy of the Q4 transcript or see my older posts on this board (where I think I may have posted about it), but during the Q4 conference call I recall Atul discussing what I almost perceived to be a change in strategic vision when it comes to sales – that being, they were no longer going to focus heavily on newer/promotional, lower margin sales, but rather trying to engage existing customers into longer, higher margin contracts. He may have been replying to the female Canaccord Analyst who was on the call when he was discussing this. I remember what he was saying kind of rubbed me the wrong way and seemed significant to me but came out in a kind of sketchy, matter-of-fact, non-transparent way for something that would likely push sales growth out another couple of years. He also touched on how little it actually would take to operate the Company in a low growth environment. That was followed up by a Q1 release where they omitted their Bookings for the Quarter – which they hadn’t done at any time I can remember in the last few years – and, again, if memory serves me correctly, their Bookings Backlog went down from ~ 8M to ~ 6.2M. At that time (I believe I posted about this) I was hoping to unload all of my shares at around 8 cents on a pop that never came and invest that money elsewhere while I waited for a lower entry point down the road. I never dreamt we would see under .045.
So here we all are…we might see another EBITDA Positive Quarter but only if the Bookings Backlog gets annihilated again, and without significant bookings, if they can’t get their big sales with existing clients fast enough (which based on posting virtually nothing the last several, painful months) they are going to have rapidly slowing bookings and quarterly earnings, likely have to start drawing from their debt facility (if they haven’t already).
On the positive side…if they don’t go bankrupt, we should see (we better see) some of their largest Gross Contracts ever at some point, which should hopefully move the needle a bit and I do think Cannabis money comes in at some point as well.
I don’t have the experience to comment on Doggy’s theory about the Ziploop shares flooding the market…maybe someone else here could…but it makes sense to me that could be a factor as a very long term base broke pretty much the week after those shares were out of their 6 month hold…