no disagreement regarding the sector as a whole, I doubt any are making a profit, however the issues that really are at the heart of any company growing a business is cashflow , cashflow is number one, next MER that is number two and given CGB have been consistent in changing the narrative of cashflow and where it comes from ---where is the local hulling or seed industry figure ,thats right there was a drought, where are all the alliances from the strategic Australian based partnerships ?------ now we have a narrative about Asian Markets and medical a continuation of studies for a particular strain that might offer a medical solution or help for some people suffering from ? even if successful it will take years to be a commercial reality--------------so now back to cashflow assuming there was a delivery holdup that caused an erroneous balance sheet bleed and even if it appears on next quarters given a rising MER {more staff to develop sales} and additional related costs if successful, then simplistically sales would have to be in excess of $1.4 million dollars to show a clear growth path, the following quarter might be the same but growth would have to be in the order of $1.7 miil to $2mill in cashflow the quarter following that and of course MER will be higher in $$out ------so here is the shift that gets me , CASH OR CASH EQUIVALENTS, and the very strong possibility of an increase in off balance sheet debt simply through the shift in accounting standards -------in short and I must stress this is a personal opinion reinforced by the available information and probability, this particular business is bleeding cash which can only be arrested by doubling sales growth every quarter for at least the next 6 quarters just to stay on the right side of solvency without raising more capital-----------------there are many other issues confronting the sector particularly from competition from Asia which broadly speaking has never stopped growing or consuming hemp products , its somewhat tragic that western the world in terms of legislation seem slow to exploit the enormous potential of hemp as a plant and I guess it would displace quite a profitable slice of big business that displaced hemp from the western world--------in any respect I sold a holding of 10mill shares the impact was little changed from 3 years ago maybe 12k tops for a total of 40k loss, well this is my business and capital must have a home that is profitable and sadly I cannot see any in CGB or the sector as a whole probably not for at least 3 years at 66 years of age thats far to long, lastly for those who seem to dislike my grammar skills let me just say I write for people who think and I appreciate the valuable input provided by so many posters on Hot Copper so I wish all holders well my capital already has a new home
CGB Price at posting:
0.7¢ Sentiment: None Disclosure: Not Held
