RE:RE:Same problem for all and HexoTouran77 wrote: Rotaluceps wrote: No, Hexo will not be bankrupted short term. Of course it could long term. They need revenue. I often talked about the biggest problem for them all. They all have the same problem. I am not even talking about profit, that is needed to run a company and pay its debt or the expansion.
It was Canopy now with poor revenue now ACB. Where will they take their revenue? Some will have to be banrkupted, the ones with no cash.
- Aurora Cannabis (NASDAQ:ACB) has lost ~3.2% in the post-market after the company reported another decline in quarterly revenue. (All financials are mentioned in Canadian dollars).
- During the first quarter of fiscal 2022, total cannabis net revenue dropped ~11% to $60.1M as consumer cannabis net revenue fell ~44% YoY to ~$19.1M. The company attributed the weakness in the consumer segment to a COVID-led decline in demand from Canada.
Last time we heard about Redecan numbers, they had an increase of 168% from Q1 2020 to Q1 2021.
Will the increase continue? with prerolls gaining attention, I am expecting a small increase at LEAST.
Hexo last quarter was 39M. Remove 6M from Zena and we are at 33M.
Basically Q4 was equal to Q2. They are back on track after only 1 Earnings miss in sales. They will probably continue from where they were before and increase by 2-3M a quarter now.
I'm expecting this for Q1, I think it is pretty conservative, but would like to hear what is your prediction:
Hexo 33M
Zena 10M (now that they have 3 months in)
Redecan 20M (only 2 months)
48N 2M (only 2 months).
Total of 65M.
Tonto
You missed the point completely. These revenues come with debt. Integrating companies cost a lot of money which is meaningless comparing about the big problem. Redecan on its own didn't do any miracle but it was a lot better managed than the public ones. There was no free money coming from investors.
Then where the revenue will come from? Btw good for your call on the small increase of revenue coming from the pre rolls. Although there was a small decrease in the 4 provinces and you know it, the increase will be just this, small increase. If there was a decrease it would by low, so in fact, it is irrelevant to save Hexo. Redecan is also suffering the same problem of too many companies for the market. There are others pre roll company. It is so simplistic to understand. From there, I play the game.
The population will not double?
For the few new stores that will open, the revenue will be divided between the so many companies.
Where will come the revenue?
One question, how many pre roll companies are there in Canada?
I just ask for a friend. :p You will also learn more about the competition.
Btw, before your clan jump on me with idiotic scenarios. I don't stay stastic. I am all covered and covered my last short because of the insider buying. It was obvious the price would go up. I took my lost. I just act accordingly to the situation. The generous options are in the money, CEO.CA .
I think the price could hold near this range, though going down slowly is quite possible. So, I am lurking at Curaleaf and ACB. No way I am shorting Hexo now.