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Greenlane Renewables Inc T.GRN

Alternate Symbol(s):  GRNWF

Greenlane Renewables Inc. is a Canada-based company, which provides biogas upgrading systems. Its systems produce clean, renewable natural gas from organic-waste sources including landfills, wastewater treatment plants, dairy farms, and food waste, suitable for either injection into the natural gas grid or for direct use as commercial vehicle fuel. The biogas upgrading systems, marketed and sold by the Company under the Greenlane Renewables brand, remove impurities and separate carbon dioxide from bio methane in the raw biogas created from the anaerobic decomposition of organic waste at landfills, wastewater treatment plants, farms, food waste streams, and other feedstock sources. It is engaged in deploying the three main upgrading technologies: water wash, pressure swing adsorption, and membrane separation, plus proprietary biogas desulfurization technology. It has delivered over 145 biogas upgrading systems into 19 countries and over 160 biogas desulfurization units.


TSX:GRN - Post by User

Comment by DOCInvestoron Jun 18, 2021 5:02pm
254 Views
Post# 33412976

RE:RE:9 main reasons to love GRN and 4 main reasons to be worried

RE:RE:9 main reasons to love GRN and 4 main reasons to be worried 30% gross profit is more than enough considering where these contracts are in the life cycle. This is very important to understand. The life cycle of new contracts involve very little gross profit at the beginning. It is the maintenance portion of the contracts that result in the real gross profit. 

So whenever there is a significant number of new contracts, expect that the first half of the revenue cycle will be at a substantially lower gross profit margin than the back half. The only way that these gross margins will not improve one year from now is if there is massive revenue expansion (aka a boatload of new contracts this summer and fall). 

So either the company will start making reasonable net profits or it will have exponential growth. The exponential growth is better long term, but I think a lot of investors will also be happy with net profits sooner rather than later.
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