RE:RE:RE:RE:RE:ValensLastoftheFranks wrote: Valen's release is a wet blanket for the sector and I'm sure a horrendous harbinger for what's coming down the pipe for the lesser extractors.
However, Nextleaf is not in that boat. While others find equillibrium through write-downs Nextleaf just needs to find clients. Q4's financials should give a clear idea of the COGS advantage over competitiors is. Their toll processing/revenue sharing scheme combined with low overhead will buffer them from inventory liquidations.
Between sector consolidation and a forthcoming sales amendment, with US legalization in the background, all the winds are blowing in the right direction for profitability.
The way most of OILS contracts are built actually puts it at risk of writedowns. The fact OILS is taking distillate as payment and croptober (which YOU mentioned) is coming in (lots of oils stashed in nxtlf inventory) will most probably lead to write downs. Simple supply/demand math.
Y'all just spouting alot of stuff about nxtlf being efficient/profitable and pumping news about it's first single sale. By the way, when is the next one gonna be? In 3 months? 6 months? a year?
Let's see how that turns out in financials. I'm warning you, OILS is not immune to current situation/ if this situation deteriorates. It's dealing in a very low priced environment that will never lead to a fruitfull booming business. It's the kind of business that can make Pederson rich, but not the shareholders.