RE:RE:Poor top and bottom-line with low and shirking margins. When a small/medium cap company with limited resources starts buying other money-losing sick companies it digs a bigger hole to get out of.
Check the history of small-size growth companies that used this approach in the past. This method was also aggressively used during the tech bubble. It did not work out for most companies.
It is the same movie being played in the Cannabis sector now. Looks at the leading companies in the sector and their write-offs so far. Leading large companies with big financial muscle can absorb losses but it is hard for smaller companies. Small companies can run out of time much faster.