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
I had forgotten the most important point.
At the beginning, a product is not sold a lot. I see this all the time. They use the annual revenue instead of the quarterly, so you don't see the decline. It is easy for the fake news to tell naive investors that the increase is 168% or whatever look good.. They will pump the 168% and not telling you that the revenues were so low, that it is easy to increase by 168%. If you can put the Redecan revenue on a quarterly basis (private company), it would not be as good. Many investors will only remember the 168%, instead of digging further. Since the revenue of Redecan were down in 4 provinces, the biggest revenue gains came from the first few months of the year, looking how the companies have problem to generate revenue.