Newstrike Brands Ltd NWKRF

production vs revenue

[WOLFD89]

What makes no sense to me is that their website states an annual production yield of 12,500kg. Canopy growth by comparison just announced a quarterly production amount of 2528kg @ $8.43 per gram, or 10,112kg annually by extrapolation. https://www.ctvnews.ca/business/canopy-growth-reports-61-5m-q4-loss-as-it-prepares-for-legal-marijuana-market-1.3990556 So New Strike has greater production, and is set to double production in the next year. Yet their revenue is paltry, with just $10,473,407 for one quarter, with 9 million coming from CanniMed for a termination fee. https://globenewswire.com/news-release/2018/05/28/1512797/0/en/Newstrike-Resources-Ltd-Announces-First-Quarter-2018-Results.html At $8.43 a gram those 12.5 tones should produce about $105 million in revenue, or $26.3 million per quarter. The math isn't adding up, plain and simple. Can anyone explain reasons for the poor revenue generation? Many thanks, Dennis

[Updownsideways]

I'm just going off the top of my head here, but I think the lack of revenue is due to the fact HIP hasn't been selling much medicinally, and is setting up for recreational sales only? If that's the case, then there shouldn't be any revenue yet from sales. I'm sure they do sell some medicinally, but I don't think they've been around long enough to attract a high patient

[Itdontmatter]

Same as ISOL, stay away from HIP, remember when they were awarded a large sum of money because of a deal which did not include them.  Every since then (4-5 months now) they have been doing nothing for the investor.

[mozzarella]

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[quinlash]

The deal referred to is the CanniMED buyout which was announced over 12 months ago now and can be clearly seen as a spike on the charts if you bother to take 2 minutes to look at them.  Since then HIP was awarded its license, awarded supply agreements with 7 provinces, signed a medical cannibus supply deal, signed retail agreements with Inner Spirit Holdings (50-75 stores I believe), 

[mozzarella]

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[mmjgaadzilla]

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[WOLFD89]

you need to take into account the assets a company has also and factor that into the SP. Look at Aurora. Their growing facility is 55,000SF. 1/4 of what New Strike claims to have. Yet the share price is 1/20th of Aurora's. Either HIP is undervalued or the other outfits are overvalued. Maybe a bit of both.

[goldman777]

almost the same TSO but ACB has greater diversification...most people have no idea how to calculate market cap to begin with, then factor in industry diversification and it gets even more confusing for the average joe. It`s all noise here as jockeying for position is front and center, as the recreational launch draws nearer there will be even more noise. expect a turbulent 3 months with some big M

[mmjgaadzilla]

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[WOLFD89]

Doubled my shares at 50 cents today to bring my average down rather than selling and rebuying. Never know when it'll hit bottom and bounce back up, right?