RE:RE:RE:Hawk...what did you like about the financials and NR?SUMKNDV1DERFL wrote: HawkII wrote: BarstoolSage wrote: As I have given you the benefit of the doubt in not throwing out the fledgling with the bathwater, tell me\us what you did like about the financials and accompanying NR. For example, the dedication of a senior staff member to the JV has to perk you up. You have doubted its viability\closing several times now.
I don't believe you are a pure basher...a SuperSkeptic might be a better label. From your posts I also believe you have a financial background.
So...enquiring minds want to know what you do like about SPR.
Barstool ... the only sage on here ...think I’ll wait for another quarter before buying shares if at all. Havent gone thru FS fully but selling price/gram of $9.82 in note 7 seems high given where OGI is ($5/g) and ACB is ($5.28/g).
Hmm, have not read the report in it’s entirety. However, you can still make the sound judgment and attempt to sway not to buy shares. Pretty lame. You are correct that the gram price is high. It is supposed to be higher than average. It is a brand for the connoiseur and not the average every day stoner. Still zero clarity on all pending items mentioned on board.
Incorrect statement. Although an update on the JV would have been nice, IMO the major issue which was financing and sustainability has been addressed. The highlights and subsequent events in the release are largely old news with the added news of layoffs.
Incorrect statement. The financing was a new PR. Also the “lay off” to which you are referring to as “worrisome” is misrepresenting. You are alluding to the “lay off” as a concern when it is a savy business manoeuvre known as restructuring. They hired personnel for the factory floor and restructured other positions in admin and management. If anything, the flexibility of employees/management to take on more responsibilities and for the president to remain on as an Advisor is extremely positive. No one stays on a sinking ship. Also, they most certainly do not throw a million dollars on as it sinks. If anything, they have added a sail and are entering full cruise mode. More worrisome is some of the quotes in the MD&A:
pg14 “the Company’s focus is now be on the sale of flower” ... They sound so nervous they can’t even string a sentence together. So much for beverages and oils. Looks like just another LP, of which there are +200. This was a concern from the beginning … shift in focus is a red flag and hopefully not something more ominous.
Incorrect statement and misuse of a partial quote. Here is the full quote from page 14 of the MDA: “As a result, the Company’s focus is now be on the sale of flower through authorized distributors and retailers, and had signed supply agreements with the Provinces of Alberta and New Brunswick.”. The focus has not shifted away from the original business plan of becoming the world’s leader and only supplier of APP. $PR has not become “just another LP”. Quite the contrary in fact, pls see the below quote from the Announcing Financial Results PR page one for proper context of your incomplete and misrepresented quote: “We were able to execute on shipments to both provinces prior to the end of calendar 2019, providing adult recreational cannabis consumers in both provinces the opportunity to enjoy CALIBER’s craft, indoor- grown Berry White and Lemon Z strains. Our focus now is to execute on these agreements while rightsizing our cost structure in order to move towards positive cash flow and deliver on our plans of becoming a leader in the cannabis infused product category.” As for the spelling mistake on the MDA, there are multiple mistakes throughout the report and hardly implies “nervousness” or “ominous” present or future events. If you had read the report, you would have noticed the simple spelling errors. So lame. pg14 “will continue to pursue other financing options” ... This is where broker coverage comes in handy but zero coverage now = zero support in the near term. And now they’ve given up security to an insider thereby restricting other potential sources of capital. IMO this all but kills any potential equity injection from MH but I could be wrong like I was on seeing a S&L with the quarter. Still an option I guess.
Incorrect statement. The insider financing does not limit any outside financial raises and multiple options remain available. Also, multiple insider financing remains an option. You are correct that an S&L is still an option. However, if you read the entire report, it is quite evident that it is an option they are not required to exercise any time soon. pg14 “management continues to explore various opportunities to reduce the operating costs” ...
Misuse of a partial quote. I do not know of any business that is not continuously exploring various opportunities to reduce operating costs. McDonalds whom have served billions and boast some of the most cost effective strategies, continuously examine new and innovative cost effective initiatives. This is the best statement you could have ended your post with. This company is on the right track! Unfortunately, you are not. GLTY Hawk, I hope you do not miss the boat by next quarter. Oh, and maybe go back and actually read the report before you attempt to respond.
SUM: (i) Premium brand huh. That's pretty funny. So is Organigram but dodgy ACB sells for more per gram lol. We get to wait another 3 months for pending news on the actual price. Something that could easily have been announced on a conference call or in the PR. Another reason the stock goes nowhere until the next Q. (ii) Financing has far from been addressed. A secured debt instrument to an insider reads lender of last resort. As an equity investor why would I put money into a bridge to nowhere. As a debt provider, why would I come in now unsecured even at a rediculous rate. As a JV partner, well you do the math. (iii) wrt layoffs, asking people to do more with less is not good for morale - let's see how this "restructuring" (as you call it) plays out, (iv) The only similairty between MCdondalds and SPR is serving - one serves food and the other serves empty milestones.