Aleafia Health Inc. (ALEAF)

[FUNMAN]

Hopefully the downward pressure is the "herd effect". The whole sector is dropping.

My only concern about profitability is once their numbers are real, they have to live with the numbers, and be judged by the numbers.

Their PPS will become a multiple of their forward EPS.

Unless they continuously show dramatic revenue increases to excite shareholders, a profit can be anything above $0, that will in the end still be a $0 EPS even if they make $1.3M because of their 274.8M O/S.

So expect it to be in the black and closer to $0 than $1.3M because last Q's revenues were $2.53M and the Diluted Normalized EPS was (0.05).

ALEAF noted on 9-24 that expenses were reduced a lot, and that they had about 45% more customers when comparing the end of July and 9-24.

Reducing construction expenses is a one-off until they decide to expand and build again.

I'm hoping for a major reduction of their cost of goods, because the last time, CoG was $2.79M. THAT exceeded $2.53M revenue.

Somehow, these two expenses from the last Q have to almost completely disappear.

Selling/Gen/Admin Expense = $5.27M
Labor & Related Expense = $5.23M

So let's see what they post.

I am really looking forward to seeing the profit and learning if it will be repeatable going forward.

Anyone else can take a stab at this.