Poor results across the board. Some companies have marginal growth and others have declining sales. The bottom line is that this growth sector has no growth. There is a glut of products and the sales are not accelerating at the anticipated rate for one other reason. There are always excuses to cover up. In every financial statement, you have to look at the numbers and not the spin of the management.
Almost all companies are burning a huge amount of cash to generate sales. Their losses to total sales are from double to triple and more
APHA sales were $153 million with a loss of $361m that is a loss to sales ratio of 1.7 times
OGI Sales 19m loss $66m that is a loss to sales of 3.4 times.
When all the companies are burning so much cash that means that they are far away from generating profits and stopping the burn rate. A few can borrow money so that means that most will continue to issue more shares. Anytime they run out of cash because of losses or buy revenues they will print more shares. Anytime more shares are issued the old shareholders get diluted. So this concept of long term shareholder does not work out for a lot of shareholders in money-losing companies
What you have is the high volatility in this sector where stock takes off and multiply and then reality brings them back to the ground. Long terms investors take a ride up and down while others timing the entry exit and entry make money. This is not a mature sector yet. There is more pain in becoming a very long-term shareholder.
APHA has $ 746 million in goodwill. That is the amount they have overpaid for acquisitions most of which will be written off as an impairment charge in the future.