ECS (ASX) Soap Box

Originally posted by wasko ↑

June 4C should be out in the next couple of weeks. A quick snapshot of where the 4 cannabis companies (including ECS) I'm tracking are at in the three quarters to March is below.

Some things that may be of interest:

AGH managed to get rid of all of their debt which isn't a bad thing, however they sold their assets to do so... Given the sale would have decreased long-term assets by a decent amount it's disappointing to see they used some accounting trickery to plump this figure up by including ~$8m in right-of-use assets for their leases. Why anyone would consider the lease of a property as an asset is dubious, if they break the lease it's not like they get paid $8m (they get nothing and instead have to pay the lease out).

CAN... where do I even start with this one! If you're looking to lose your money this would be a pretty safe bet. Despite paying back $10.5m their debt still grew to $65.8m by end of March. They are busy trying to bucket water off the titanic by selling whatever they can and refinancing debt under even worse terms. Borrowing from Peter to pay Paul except Peter is demanding the financial equivalent of a night with your spouse in interest (depending on how much you like your spouse).

ECS is a breath of reasonably fresh air amongst the stench of mismanagement from other companies (looking at you ME1). I think a few of us noticed the quality of the air improved measurably when AK exited stage left. The capital raise left a bad taste in a lot of our mouths, but it means they had the second highest cash balance amongst the companies listed below at the end of March and a funded growth plan that should boost net operating cash flow based on prior periods. It's really hard to say what to expect for the June quater as there was so much going on - large stockpile of inventory waiting to be converted to oils by SunPharma and sold as they entered April, largest harvest ever wrapped up by end of May, new sales team that needs to be paid for B2C which means these expenses will front-run revenue from this channel as it's just getting started. I'm excited about the immediate future of ECS as activity has really ramped up in the last 6-12 months and we should all start seeing the benefits of this in FY25.

LGP looks like it could be turning the corner under the new CEO. They posted positive operating cash flow for the three quarters but this was due to the receipt of $5m in government grants and tax incentives in the March quarter. Without this payment they would have lost about $1m in the March quarter in operating cash flow so have definitely still made progress compared to prior quarters.

Expand

Originally posted by NoRunningLights ↑

Very (very!) interesting to get the forensic accountants perspective. Thanks heaps.

I have a slightly different set of measures - i guess giving my take on positioning in the market more weight. And my personal assessment of thier management's psyhe and understanding of the industry.

Same general result, but mine is even harsher on the others in this space than yours. Far harsher. Scathing - and the market cap tragectory of all of them bears this out.

I also include VIT in my sector - not a producer like the others, but still with significant exposure to the Au MC market. And the biggest ASX cannabis player.

I expressed my doubts yonks ago about whether they could continue to hold their market dominance - which had factored 500 mill into the market cap not long ago - and have been scathing about the immediate previous management ever since their blind-ignorance and arrogance started its Al Dunlop-style wrecking ball adventurism.
Job done. 20 times our market cap to only X 2.5 in less than a few years.

( Nb, Advance notice; i intend to do another SP comparison with our peers early next month - in case anybody thinks i am pulling out the date when it suits my case.
There are valid reasons for selecting this period as a point for comparison.)

Expand

Love your work wasko. Thanks for sharing this.

It really seems like the only ones that are going to be left standing in the cannabis space on the ASX are ECS, LGP and VIT.

CAN on the verge of voluntary administration, AGH has enough money to pay their management and directors before another cap raise and then probably the end of the road.

Crazy to see the space dwindle down to only a few companies, a few years ago we had close to 20 companies , now last ones look to be standing are ECS, LGP and VIT. No other legit companies I can think of, anyone have any? Rest are trash imo and money grabs like ME1, AC8, etc.

No.	Vol.	Price($)
1	35000	1.8¢

No.

Vol.

Price($)

35000

1.8¢

Price($)	Vol.	No.
1.9¢	1379773	5

Price($)

Vol.

No.

1.9¢

1379773

No.	Vol.	Price($)
1	35000	0.018
11	2988351	0.017
18	7586172	0.016
18	8027639	0.015
7	2091428	0.014

No.

Vol.

Price($)

35000

0.018

2988351

0.017

7586172

0.016

8027639

0.015

2091428

0.014

Price($)	Vol.	No.
0.019	1379773	5
0.020	1018251	8
0.021	1587441	5
0.022	920000	4
0.023	578677	2

Price($)

Vol.

No.

0.019

1379773

0.020

1018251

0.021

1587441

0.022

920000

0.023

578677

(20min delay)
Last 1.9¢		Change -0.001(2.63%)		Mkt cap ! $23.83M

Open	High	Low	Value	Volume
1.9¢	1.9¢	1.7¢	$32.97K	1.846M

Love your work wasko. Thanks for sharing this. It really seems...

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Strong PFS numbers solidify Lithium Universe's big plans for Québec

Iress runs 'hot' for Wealth Within's stock tips

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Failure to report prompts ASX to impose multiple company suspensions

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Love your work wasko. Thanks for sharing this. It really seems...

Top Stories

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Strong PFS numbers solidify Lithium Universe's big plans for Québec

Iress runs 'hot' for Wealth Within's stock tips

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Failure to report prompts ASX to impose multiple company suspensions

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News