"Have the company’s management make mistakes? Yes, undoubtedly." Hi
@Hanno,
Mate, I totally agree, and while we are waiting for the CannTab news, I thought I would toss out a few thoughts on your comments. So here's the "Good, the Bad and the Ugly" from my perspective.
THE UGLY
1. The "Year of proof-reading errors" which IMO undermined their good ann's and probably, for some, a loss of confidence in CGB's mgmt to administrate the business properly
2. Their habitually late last-minute financial reports
3. The Share Price
4. Further dilution of the S.O.I.
THE BAD
1. Lack of regular updates and/or SM updating in favour of Quarterly Summary Reports
2. Using side explanatory notes to report on the disposal of assets or the termination/completion of major deals
3. The Share Price
4. The poorly managed AGM in 2020.
THE GOOD
1. Engaging a professional third party CFO team to handle company financial operations
2. Trimming unnecessary costs and asset maintenance costs
3. Reduction of costs associated with AGMPL and the Geology team
4. Their first major deal, CannTab, is one step away from being realised here in Australia
5. Retaining a healthy balance sheet of $12.4ML in the bank
6. Debt-free balance and an improving FCF and Accrual Ratio which can lead towards future profit returns
OFFERING A VIEWPOINT
Looking back at the errors we have seen over the last few years; they appear to be atypical of management that lacks real-world experience in the consumable and perishables sector.
This company, in its previous iterations, have been junior miners. And IMO, would be used to working with longer timetables and survival management mindsets, which may go a long way to explaining the cash preservation/issuance of shares/larger S.O.I. approach, over cash burn/depleted cash balances/smaller S.O.I's, which we have typically seen with the other Microcap companies in this Cannabis sector. So at the end of the day, which is the better model to follow and invest in??
As an investor, looking at the whole industry, I know that none of the 29 ASX players, even with $10's of ML in revenues, turn regular or stable profits yet.
I will say this; I do give them credit for identifying their weaknesses and engaging an external CFO team who, as a group, appear to be advising them on managing a business in the consumables industry. I also think that it was a wiser step, in the interim at least, to engage a CFO team to oversee both the International and Australian operations at this point in their journey, rather than relying upon a single internal CFO.
MOVING FORWARD
Right now, we all want to see green in our accounts. And to be frank, I don't think any "puff pastry" well-crafted post can change the reality of
RED in the old account.
Acknowledging your other point, though, about the industry, as a whole, I am trying to use my skillsets to analyse the operating data to determine if the current share price is:
1) a result of a failing company,
2) is due to market manipulation, or
3) is just a company that initially used an old operating model (perception), struggling in a new industry that is still working through supply issues and establishing floor prices for supply and distribution of products to consumers.
With CannTab on the way, I am reconsidering, for my ongoing position, whether or not a little more patience is still required with this specca to see if they can "actually" deliver on their promises for their shareholders.
Just how I see it...
Cheers...59
