RE:RE:RE:RE:RE:RE:RE:RE:Delta 9 Q2 report?
onemill wrote: My thoughts
Why 2more stores in Winnipeg lets compete against ourselves? dont we have enough exposure there
$ 1,0706.24 more admin general cost on same sales as Q4($ 8921. A month more ) ?
26.54 % margin attained ( cost 1.00 sell1.36=roughly 26.47%)
my Experience- you either ceate more sales with less margin and watch expenses (ie top management perks,purchasing stores in the area Winnipeg)maybe buy sk .ont etc Im sure they are places which are not doing so great in other provinces ?
reduce production costs ?
or raise prices and lose sales ?
as i have be a stock holder for many years and listened to the ----- but realized this after all these years is not a well managed company. Its time to be a leader think out of the box not out of the book. My opionion
Thanks for chiming in.
They are not canabilization sales, imo. They are capturing existing and obviously well-established market share. The NR said those stores are growing sales and EBITDA and earnings. That's what matters.
But they are still overpaying. They still pride themselves about the price to revenue ratio paid for stores i.e., 0.41 of annualized sales, but they appear to not understand that they are paying for it with the issuance of more shares of our company, currency that is being valued at 0.3 times TTM sales. Its like priding yourself of buying a million loonies with a payment of a million twonies. I know grabbing market share is important but they are diluting our relative ownership at a faster rate than they are beefing up sales.
With the mothership still not able to report actual earnings, its unsustainable.
"renewed focus on cost reductions"?? Why do they have to ever drift away from being responsibly focused on cost reductions?
I have often said these guys are responsible business people but lately they do sometimes make we wonder...
BTW, they in fact have increased their top line YOY, and
they in fact have have decreased their total cost per gram, YOY,
They have to stop over-paying for market share until they can prove they can run things profitably.