Greenlane Renewables Inc T.GRN

9 main reasons to love GRN and 4 main reasons to be worried

[DOCInvestor]

In no particular order:

Love:

1. Revenue Growth: 12.2 million Jan 1-Mar 31,2021 compared to 2.9 million Jan 1-Mar 30, 2020 

2. With revenue growth profit growth: 2.9 million compared to 979,000

3. 37.5 million in cash and cash equivalents (dilution not needed)

4. US revenue growth 10x what it was last year 

5. The last bought deal was for 26 million dollars at a share price 50% higher than what it is now and the corresponding options are priced well above the current share price

6. The last big batch of cheap warrants expired June 3, 2021. 

7. They keep on getting new contracts.

8. The company appears to make money each and every deal they make (hey Xebec, you should learn from this).

9. Company deals with green renewable energy. Safe space for the long term.

Worry:

1. Canadian revenue has completely dried up

2. UK business is shrinking

3. The consequence of this is that this is really a US focused company, unless you want to count on Brazil and Colombia, I know I don't.

4. It's great that those cheap warrants expired, but they were exercised at 26 cents, and people want to take some profit off of the table, and they might not be done!

[mingzhu]

one more worry: the gross margin is only 29%. That is why it made 4x revenue of 2.9m in comparabble quarters, it could not make even, not speak of profit. it has to be 35% to 40% gross margin. 

[DOCInvestor]

30% gross profit is more than enough considering where these contracts are in the life cycle. This is very important to understand. The life cycle of new contracts involve very little gross profit at the beginning. It is the maintenance portion of the contracts that result in the real gross profit.  So whenever there is a significant number of new contracts, expect that the first half of the