HEXO Equities Warrants Exp 2 Apr 2024 T.HEXO.W.A

RE:RE:Will Sebastiens 400 M sales come true??

[mydogchach]

quinlash - (5/21/2021 12:15:09 AM)
RE:Will Sebastiens 400 M sales come true??

if we look at the last QTR report from HEXO, Zenabis and 48-North, add those numbers up and multiple it by 4 we can get a starting point for what the annual sales numbers will start coming in once the new acquistions are rolled up under the HEXO banner

HEXO	Zenabis	48-North	Totals	Extended for 1 Year
$45,678,000	$24,812,000	$7,607,000	$78,097,000	$312,388,000
$41,300,000	$28,490,000	$6,713,000	$76,503,000
$36,100,000	$30,280,000	$10,472,000	$76,852,000
$30,900,000	$22,361,000	$2,806,000	$56,067,000

At a QTR over QTR average rate of growth of 8% HEXO will require no more than 3 additional QTRs to come in over the 400 million dollars in sales per QTR.  If the growth rate goes up due to the company expanding into new markets, the rolling out of new products or HEXO pulls in another smaller company, then the target of $400 becomes reality in less time.



Queen - you obviously put some effort into you presentation - good for you, but if you're going to do that - why do you use misleading and/or inaccurate numbers? Why not just post the actuals - they are, what they are.

First of all - you're using Gross Sales ($45,678,000 for Hexo) - and you're either doing that on purpose to mislead readers - or you just don't understand the financials.

To explain it to you then, when a customer buys $100 of goods, the sale is as follows:
         Sale     $ 100.
          Tax          10. (10% for example)
Gross Sale      $ 110.

The $10 Tax is not a 'sale' - it's collected from the customer and remitted to the government

On the financial statements then it reads:     Gross Sales   $ 110.             $ 45,678,000  Hexo actuals
                                                                  Less Tax           (10.)          (12,851,000)
                                                                   Net Sales      $ 100.          $ 32,827,000

Tax is simply in and out - the correct sales number for the quarter is $ 32.8 million 

Next - SSL (or Donald) made his bold prediction in 2019 - two years ahead of the Zena/48 acquisitions - and Hexo's last quarter actuals were $32.8. 
So, 32.8 x 4 quarters =  $ 131.2 million per year. - not even a third of his real estate developer prediction (or bullsh*t as some might say)

But - let' see what the actual combined net sales were:

Hexo             $ 32.8
Zena                12.4
48                     6.0
Total Sales     $ 51.2  x 4 quarters = $ 204.8 million actual annual combined sales

In other words, actual existing sales are approx. $ 200 m per year.
It really doesn't matter what SSLs 'guess' was in 2019 - he obviously over estimated.
If it's $ 200 - then that's what it is.

For the growth predictions - you used 8% - but anyone can add whatever they want to the $200 million to arrive at their own guess.
But 8% on top of $ 200 million is still only $ 216 million

AND - for you to say that the increase will be based on 'new markets' - what exactly new markets will there be in the next 3 quarters, which is only the next 9 months?
- it won't be the U.S. - that's at least two years away
- there'll be no immmediate reccreational sales in Europe - until their sales partner actually gets the sales licence they've been promising for 4 years.
- sales in Isreal are still restricted - but regardless, the total population of Isreal is 9 miilion people, about the same as Quebec and smaller than 12 inndividual U.S. states. It's not a big market and Hexo's portion of total sales will hardly be material for any time soon.

Again - I don't know if you do it on purpose or are actually unaware of how things work - or if you're just an unrealsitic pumpatrd - but if you're going to try and be 'the info man' with your posts - then why not be accurate and honest?
That would be a better service to your co-investors than the nonsensical scrapbook you work on.