RE:RE:RE:RE:RE:RE:The 1.60 wall..The majority of LPs have yet to post positive cash earnings which is to be expected in an emerging market. The question of additional funding comes into play when sales cannot support the operation.
With substantial increases in sales Qtr over Qtr (yes, 20% is substantial, 10-15 in a year is an optimitic target for any other sector) the trend towards profitability is there. With the uptick in sales and the additional rollout of new stores in Ont more channels to market are coming online and providing access to more consumers.
As we move towards more acceptance of legalization and use by the public (both for medical and rec purposes) we can reasonabily expect more people will look towards cannabis alternatives for medical purposes as well as some amount of a upward trend in the use of rec products.
More stores and a trend towards more acceptance of the products result in more sales therefore reducing the need for additionall financing. Will the uptick in sales account for the gap between the burn rate and the revenue stream? Time will tell.
Hexo is ahead of other LPs in their cost reduction and, as they own their assets, are well positioned for alternatives to seeking additional financing. The sale of the NewStrike facility is just one such example which will not only put cash in hand but will also result in a lower on-going montly expenses.
If you are not optimistic on the company surviving you can actually profit from a downward movement in the SP by placing a short on the stock.
Here is how you do it: https://www.fool.com/investing/how-to-short-a-stock.aspx Here is what happens when you get a short wrong. https://www.marketwatch.com/story/help-my-short-position-got-crushed-and-now-i-owe-e-trade-10644556-2015-11-19 GL in your investing
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deanthebean wrote: I am more inclined to side with the knob. I think that the major issue will be large losses and a longer window ahead towards possible profitability. Operations are expensive and money will run short; good luck finding investors or loans in this environment. They have been touting the beverages for a while but with no tangible news. The story is getting old and the wait time is getting to be far too long.