WHAT DOES IT TAKE ?! How to move UP.
What will it take to raise AUXLY’s share price?
What does it take make a positive impression in the Canadian mj space?
It’s clear to me that absent any other news AUXLY is going to have to post some stellar numbers for Q3-2021 in order to move the needle in a positive way.
Analysts are projecting AUXLY’s net revs for Q3 at a little over C$22 million. A logical approach might suggest that those analysts are playing it safe and those estimates are more than modest.
With continued and steady growth in retail cannabis sales in Canada, July 2021 recorded $338million according to Stats-Can.
It is therefore, now reasonable to project that total Canadian retail sales for July-September, 2021 should exceed C$1 billion.
Auxly reported a market share of 5.4% for July, 2021 and have stated a goal of achieving 7% or more by year end.
If we ignore Auxly’s growth targets and apply the 5.4% demonstrated market share against a C$1 billion market then we get C$54 million retail sales for Auxly for Q3-2021.
Next, I apply a rule of 50% of retail to cover taxes and mark-up and the result is a moderate projection of C$27 million net revenues for Auxly Q3-2021.
It’s a very basic approach but it gives a result that is worthy of discussion. Would a C$27,000,000 net revenues Q3-2021 be enough to move Auxly’s share price in positive direction?
Would a 35% Q over Q increased do the trick?
Is a 20% beat of analysts projections attention worthy?
Would Q3-2021, break even EBITDA turn heads?
What will it take for Auxly to be recognized as a force in the Canadian mj space?
Hang in there mates.
cheers
https://simplywall.st/stocks/ca/pharmaceuticals-biotech/tsx-xly/auxly-cannabis-group-shares/news/growth-investors-industry-analysts-just-upgraded-their-auxly
https://www.fool.ca/2021/09/14/2-cheap-tsx-stocks-to-buy-now-2/