Post by Benedictuson Nov 16, 2021 9:58am
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Post# 34131299
Question of margins
Question of marginsThe problem with this report and one of George's more significant responses on the call is around gross margins. He really didn't offer any specific margin profile for each of the segments when asked. I've been following this company since before the Geronimo recap and such lack of visibility is a new development. It suggests an industry and business in major flux with some concerning headwinds. Q4 Guidance of $15 - 17M is excellent as it shows LFS and cpg is making up for the B2B bulk shortfall but without any ballpark of expected margins investors are left in the dark on how much of that falls to the bottom line. Cash burn of $10M was also a negative surprise. I think after the dust settles, .60 - .70 is possible (or .50 - .57 for LOWLF). That is where significant support appears on the weekly, which equates to around a US market cap of 165M or a psr of 2.5. I'm not long or short but monitoring for a potential trade.