RE:BSGotime2 wrote: Analyst should be coming on board with the production that is happening they have revenue. I feel once again they are slow on the draw
With fins coming up for calendar Q2 (Q3 for NL) which will likely show reduced IP revenue if any, and likely zero processing revenue, that could add some selling pressure. If they want to counteract that they need a corporate update advising sales for July on the processing and IP.
They may not have analyst coverage until they book a full quarter in sales, unless someone wants to jump in a bit earlier with less than a Q of numbers to base it on.
Gotime2 wrote: They say they are not promoters, and that is fair. But it's not promoting when you share milestones and accomplishments other than hard deals. Sharing production goals and current production would be good PR
Agreed. If they are planning to let the financials speak for themselves, we are looking at November at the earliest, but since September is their year end, it could be a long wait. Q3 2019 financials were released Aug 28, YE the following January 28. Since we know Q3 (Apr-May-Jun) won't show much we are waiting on Q4 (Jul-Aug-Sep). Unless the majority of shareholders are aware Q3 will likely be in the red, the sp could dip back to the teens. The market tends to react on poor financials.
So either they release Q4 (Jul-Aug-Sep) earlier than YE results, give corporate updates along the way, or it is likely another six months at this price level until there are numbers available to decide where to value them in the extraction space.
There has been plenty of speculation on how great NL's margins are, but with recent events at LABS and VLNS, are they still good? Is this business still a cash generating machine like Ubika forecast, or has there been so much compression on the pricing in the sector that margins are just ok? We know biomass is cheap, but what about oil? Too much in the market? Sure, they can process 600kg/day, but can they sell that oil? Is it still too early in the 2.0 market to expect any significant demand for oil? Are we looking at 2021 for any significant activity in the market? Paul talks about a race to the bottom for the price of oil. How profitable is NL when the bottom is reached? Paul says there is more upside in selling the means to production. The US is the obvious market for this, so the timing is unknown since legalization is a question mark. How likely is it to sell IP to other jurisdctions - not likely in the near furture as there is little proof of its economic value at this point.
The longer it takes to answer these questions the longer the sp will likely stay stuck in the same channel or slip even further unless some new catalysts arise that indicates to the market it should reevalute.