RE:RE:RE:Why is the share price staled?quinlash - (5/18/2021 11:03:30 PM)
RE:RE:Why is the share price staled? If no more Cannabis stores open, if HEXO does not expand sales overseas and does not enter into the United States, if they fail to capture even 1% more market share out of Canada then the combined annual sales of the combined sales from the three companies would look something like $78 Million x 4 = $312,000,000 per year
The $312 million is GROSS Sales, not NET Sales, so you've included the sales taxes in your number. Those aren't sales - it's the tax you pay at the store on the prdocut and it goes directly to the government. That number for the 3 totalled $18.5 million for the last quarter, so $18.5 x 4 = $74 million - or $74,000,000.
SO - extrapolated combined Annual Sales would actually be $238,000,000 using your scenario
What you also have left out is the combined NET LOSS for the 3 companies - $34,000,000 x 4 = $ 136,000,000 per year
HEXO is indeed expanding into Germany and Poland and have sales in Israel already
Hexo is licenced/certified to produce and distribute cannabis to Europe. However, Hexo does NOT have a sales licence - and until their European partner (Farmako) gets their (which they've been trying to get for about 4 years), they aren't able to sell RECREATIONAL cannabis in Europe.
As for Isreal - the Isreali governemtn introduced new stringent regulations for foreign companies - including Hexo and Zena - exporting into the counntry. The new regulations heavily favour Isreali doemstic producers - who don't have to meet these new guidleines. Sales/imports were suspended last fall(?) I believe - and it's anticpated that it may be as late as Q4 2021 beforre before new licencing regualtions are met - and imprts resumed
HEXO has purchased a building in the US and already discussing how to upgrade it for production
HEXO purchased an unused warehouse type building - apparently from Molson Coors. Hexo obviously knew going in that it would require retrofit - and have placed an estimate of between $16 and $49 million. This wide ranging 'estimate' basically states they don't have a clue how much it will cost - and as Ive suggested before, look for a number closer to $75 million.
HEXO has been capturing Canadian market share Q over Q in Canada
What are those numbers and what quarters are you refering to, please. It's a bold pumptard statement - but can you back it up.
... and finally... we are still a far cry from having enough Cannabis stores in Canada to service the market (Ontario being the easiest example).
What are the other provincial examples of store shortages? I think maybe it;s just Ontario (and Nunavet)
If there are too many car factories and too many cars produced for what the market demand is - the solution is more than opening more car dealerships, it's also reducing the numbe of cars you build. You might even have to shut down some car factories.
Yes, all companies rneed to ahve appropriate inventory in hand to meet ongoing sales orders - but Hexo's combined inventory for the 3 companies, based on last quarter's numbers $160,000,000 (plus Biological Assets)
Maybe Ontario needs to open more stores - but maybe Hexo (and others) needs to cut production to meet demand. If there aren't enough stores right now, and you know that - why don't you cut production until there are?