mydogchach wrote: <span style="font-size:11px;"><em><a class="PostUser" style="box-sizing: inherit; outline: 0px; line-height: inherit; color: rgb(46, 104, 191); cursor: pointer; font-weight: 700; font-family: Tahoma; font-size: 14px; white-space: nowrap;">quinlash</a><span style="color: rgb(10, 10, 10); font-family: Tahoma;"> </span><span class="PostSeparator" style="box-sizing: inherit; outline: 0px; font-family: Tahoma; color: rgb(10, 10, 10);">-</span><span style="color: rgb(10, 10, 10); font-family: Tahoma;"> </span><span class="PostTime" style="box-sizing: inherit; outline: 0px; font-family: Tahoma; color: rgb(10, 10, 10);">(3/25/2021 11:46:57 PM)</span><br style="box-sizing: inherit; outline: 0px; font-family: Tahoma; color: rgb(10, 10, 10); font-size: 16px;" /> <span class="PostSubject" style="box-sizing: inherit; outline: 0px; font-family: Tahoma; padding: 5px 0px; display: block; font-weight: 700; color: rgb(10, 10, 10); border-bottom: 1px dotted rgb(172, 173, 174);">RE:EBITDA and warren Buffett</span></em></span> <div class="PostText" style="box-sizing: inherit; outline: 0px; margin: 0px; padding: 3px 5px; font-family: Tahoma; overflow-wrap: break-word; color: rgb(10, 10, 10); font-size: 16px;"> <span style="font-size:11px;"><em>Every Cannabis company out there is using adjusted EBITDA numbers to measure their progress towards profitability, it is how the sector is doing it, you can like it or not, it is what it is.</em><br /> <br /> <br /> <span style="font-size:12px;">Yes, every non-profitbale cannabis company highlights postive EBITDA - it defeclts from the fact that it's losing money. But it's not used as a measure towards profitability. If you suggest that Hexo losing $20 million last Q is acceptable and theyr'e on the road to profitability because of an EBITDA measure is inaccurate and misleading.<br /> Hexo - and pumptards like you - post about postive adjusted EBITDA - but you never mention the real Q loss of $20 million. As well, adjustments are non-GAAP - meaning the staff accountant can back out any expense he wants, that the external auditors won't allow in the real financial statments of Balance Sheet and Income.<br /> Hexo reports a $20 million loss - and right off the bat backs out $6 million in share compensation to get it down to $15. million - and then additional expenses until it magically reports posotive EBITDA of $200,000.<br /> How is Share Compensation, NOT compensation and rightfully reported in the Income Statement and bottom line loss?<br /> That's like backing out 2/7 of the Admin staff salaries because they don't work weekends.<br /> <br /> Yes - it's a measure with some purpose, the problem is when it's taken as the key measure and ignoring everything esle.<br /> <br /> A proftitable company - like VFF - highlights EPS, but still shows the ebitda in it's MD&A because it's ONE useful measure (and everyone else does it) - but it's not THE measure when for investsment purposes. <br /> Here's what they write - openly and honestly - about EBITDA in thei MD&A:<br /> <br /> <strong><span style="font-family: Arial, Helvetica, sans-serif;">"Adjusted EBITDA is a cash flow measure that is not recognized under GAAP and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Although net income or loss is the most directly comparable financial measure calculated and presented in accordance with GAAP, investors are cautioned that Adjusted EBITDA should not be construed as an alternative to net income or loss determined in accordance with GAAP as an indicator of the Company's performance or to cash flows from operating, investing and financing activities as measures of liquidity and cash flows. Management believes that Adjusted EBITDA is an important measure in evaluating the historical performance of the Company."</span></strong></span></span><br /> <br />
MyDog, I have been butting heads with these dopes for several years now and they never learn - sorry to say.<br /> MJ hype is now done and it is earnings that dictate direction, that they refuse to grasp with reality. Given continued losses at Hexo (not surprising after I have been away for several months) and with the addition $60 million of debt added due to the recent aquisition we can see this stock is not going anywhere in a while, especially with a market cap of $1 billion.<br /> Selling dry herb will eventually reach saturation if it hasn't already and drinks are highly competitive and a novelty as other dilivery methods are much more <strong>effective</strong> and <strong>cheaper</strong>. Expanding drinks into additional US states requires a production plant in each state, which entails huge costs and further losses.<br /> The problem is the boneheads on here are waiting for 300% - 400% gains from this point which will never happen so they sit, loose money in the long term and while they experience opportunity cost. </div>