Auxly Cannabis Group Inc T.XLY

Why the 3Q Investor Reaction

[Investorpedia]

XLY has become an interesting turn-around story, and are on a nice path back to profitability. So why the negative reaction? So as an investor, I am thinking what can be the major disappointments.

First, large debt servicing is a big drag. 2nd, although they are increasing CDN market share, production limitations were a surprise. 3rd, no view for entry to US market. 4th, any hiccup to execution could lead to more share dilution, or increased debt.

Investor buy-in will depend fully on their confidence that the XLY ship will be kept steering in the right direction.

I for one, has a relatively high degree of confidence.

[UniqueKitty]

I see your points, 'Investorpedia.' What I'm seeing is more a lack of reaction. It doesn't help that the mj market sentiment remains in the toilet over all. The 'BUD BATH' continues.  But, let's kick it around anyway.  1. Auxly's largest debt bears a 4% interest rate. Find that elsewhere in the mj space. 2. Granted. Expected automation not

[NLJigger1]

UniqueKitty I concur , just can't put messaging together llike you do. I'm equally confident about Auxly and the further of this company. We're back on track and gaing momentum. With all of the positive news it's a matter of time before the share price breaks free and heads Northward where it belongs. You can't hold a winner from moving forward and we are winners with Auxly

[SCQuin]

Actually, the negative investor reaction was caused by the Q3 ER that shows Auxly is clearly losing momentum in the critical area of becoming cash-flow-positive. It seems now that investors will have to wait until the Q2 ER to see if this will even be possible in 2022. Someone in the company (the management team) needs to take responsibility for the fact they are not positioned to meet the demand

[nortzy27]

ur right quinn,this is a trade about 4 times a yr  ,everytime it looks good it lets all the faithful shareholders down,remember last friday when there was a huge drop end of day?well news had leaked i presume ,i market sold half of position right after reading news and there inability to lower ebitda,the company is good and will continue to monitor and look for a trade,and still hold a

[Investorpedia]

Good for you Nortzy. Wish I had been as astute as you. They need to cut costs while increasing revenue... not an easy feat while at at near to maximum production capacity. Operating margins and production capacity must somehow be increased. No more predictions from me...it's a wait and see......

[Oceanis]

Are you kidding me investorpedia, there no where near production capacity, they haven't even begun to be near their production capacity.  1.1million sq/ft. Greenhouse state of the art. As an "investor you should know that. What Auxly is doing is, optimizing the capacity output as needed according to supply/demand, while, tweating the quality of the output to premium standards

[UniqueKitty]

SCQuin, may think Auxly is near production capacity but Auxly CEO, Hugo Alves has a different take on things. Here a Hugo quote from the Q3 conference call; ..."I'm very happy to report that we finished the month of October with 7.3% share of overall market, and we did move into the number 5 spot.  And we're confident that we're going to continue to increase share over

[SCQuin]

Hugo said this "Our quarter could have been much better had we been able to fill all of the demand." 

[Investorpedia]

SCQuin, I could not have said it better.

[UniqueKitty]

With respect to up scaling flower and meeting pre-roll demand. This is not an overarching statement of the business at large. It's a specific problem with a series of available solutions.  Hugo continued in his intro with this; "we did encounter some operational challenges during the quarter, which negatively impacted our gross margin. Those challenges were related to

[bull_runz]

You got your 24...A C C U M U L A T E !!! :)

[Investorpedia]

Oceanis, 19% margins very low. Skew processing automation and cost reductions will be key. They can grow billions of bud if they want but the aforementioned is my focus and concern for now. Not to get me wrong, as I have previously posted, I have confidence that will prevail....XLY has executed a significant turn-around so far.

[Oceanis]

I thought your focus was Capacity? you said that they're "at, or near their capacity" did ya not, now it's margins? You can learn a lot from the people that have been here for a longtime investorpedia. This captain obvious play needs work.  Just sell your valens for a loss and buy Auxly on the cheap and be done with it!  You know you want too!  valens is over

[UniqueKitty]

I presume, 'take responsibility' means; someone gets canned?  Pretty sure that already happened. The failure here falls squarely on the equipment manufacturer.It's not easy holding people outside of your own company accountable. It's outside of AUXLY's control.  That said, I'm pretty sure the recommendation of the manufacturer likely originated from

[SCQuin]

Its called "risk management" something I am not good at given LONG position here...lol