Hopefully management will release something shortly to spark some interest in the shares. It's a shame there isn't more attention for this industry, I guess a lot of people have been burned and thrown the baby out with the bathwater. This half is going to be a green wave of product for ECS with their cultivation area now twice the size. My forecast is that we should see them have about $16m in inventory at their disposal with the harvest underway (starting inventory - $3.4m, additions - $12.6m).
To date, H2 has always been the money-maker for ECS with revenues almost doubling what's achieved in H1. Revenue for the first half was ~$7m, if they can double that in the second half ($14m) it will land us at a respectable $21m in revenue for FY23 which is also our market cap lol. It will also mean management earn one of the tranches of their performance incentives - revenue >$20m. It's a big ask, but Nan has really impressed me to date and on paper it looks like she's built a solid management around herself.
If it all comes together this half we should see our first profit announced and some decent cash flow from operations to boot. Let's hope I'm right...
ECS Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
