When you think it can't get worse!But it DOES so much more!!!! LOL.
WOW that was one messed up financial report, from a sustainbility perspective. Not sure how much longer this massive "bleeding (to death!) can continue for the big players like Aurora, Canopy, Cura, Tilray & a few others, but i'm guessing not much longer. In Aurora's case after reading the report, even though they are doing better and have managed to be at least cash flow positive on the operational side, their overhead plus G&A is just killing the company. Not sure how to rectify that when your losing over $50M per quarter just on those.
I've been telling investors to COMPLETELY AVOID this sector for years, and will continue to do so, especially after that mess. What this report tells us is that one, it's totally unprofitable in any logical manner to operate a decent cannabis operation in Canada due to many factors including crazy ballz taxing on everything that moves, and two, IF the USA doesn't legalize soon nationwide, all these Pot companies are D-O-A and soon to be a distant memory. So.......If you were a smart investor, you sold ages ago, never looked back and completely avoided ANY further investment here!
Going back to the report for a minute, i now realize & understand why some "dubious" actions were taken by the company's mgmt a few short months ago. Something that didn't make sense back then, because of smoke filled backroom whealing & dealing, but makes complete sense now after seeing these results. See the link below for what i'm refering to
https://stockhouse.com/companies/bullboard?symbol=t.acb&postid=34729292
https://stockhouse.com/companies/bullboard?symbol=t.acb&postid=34729856
If there's a bright spot here in general for some investors, it's this. One thing i'm glad about these dreadful markets recently, is that i'm glad i'm not a holder of equity of ANY of these horrible pot companies. The worst preformers by far by any sector. And i'm guessing it will get much worse if this financial report by Aurora is any indication or barometer for the whole industry.
One word GTFO
GLTA