CPH (ASX) Ann: Quarterly Activities/Appendix 4C Cash Flow Report

Originally posted by Sdaji: ↑

This metric alone is meaningless. Many companies have revenue of zero but market caps of anything from millions to hundreds of millions, occasionally even more.

Countless companies fail and cease to exist with investors losing everything despite hundreds of millions in revenue.

There is no shortage of examples of both of the above, we all know that.

What's relevant is the company's profitability. There is no good in earning money if it costs you more than that amount to earn it. It's not necessarily a problem if you are currently earning nothing if you have a project which is set to be very profitable when it's up and running.

CPH has clearly demonstrated a lack of ability to turn a profit. Most of its cash burn goes into the pockets of those running the company. It has a history of clearly inappropriate dealings (this isn't unsubstantiated information, this has been public knowledge for a long time, and this in itself is more than a big enough red flag to keep me away from any company). CPH doesn't have any realistic outlook for expansion in a profitable way.

Brainchip is a completely different company at a different stage and even in a radically different industry. Brainchip is early stage, selling a promise about a novel technology venture. CPH is dragging a history of failure without even proposing to do anything particularly new; it has already demonstrated a long term inability to be profitable in what it does. It's a meaningless comparison. The only time comparison of revenue is relevant is when you're comparing similar companies at similar stages (or comparing them across timeframes), especially if their profitability ratios are comparable. To find a relevant comparison here you would need to find another marijuana company with a long history of being run unprofitably, and you would then need to take into account all the other problems specific to CPH (unless the other company had similar problems, and honestly, I don't even think you would be able to find another company with similar problems as bad as CPH's).

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Good luck with your brain chip.
Allow me to point out, the whole marijuana industry is down at the moment, it's not just CPH.

When we are desperate, it's time to be greedy.