Earnings expectations Q4 2023
For the last 3-4 years the expectations for Greenlink/Suncliff have not aligned with reality. The lack of revenue from the 502 business, failure to launch from the pillow/bedding segment and sharp account receivables accumulation, have many of us questioning if or when the leadership team will finally gain traction. The excitement surrounding the Suncliff Terpene Gems gives hope that numbers will start to tell a story.
Who wants to share their expectations that are firmly based on revenue, earnings and some kind of valuation? For every $0.01 in share price is $12M in market cap (1.2B shares).
Reading deeper into the 502 business in Washington State, most producer/processors are break even at best or have consistent losses. Many factors listed are the 502 market, greedy tax structure in WA state and the inability to write off many costs from the federal status of pot products. The business model of the farm is pot adjacent, where most the revenue is collected from rents and not a direct party to the selling of anything THC. (Cannot find Suncliff, Greenlink or AGH on any 502 licenses). Don’t expect much revenue growth from this segment with the profitability of the 3rd party 502 licenses in question until federal legalization. Expectation: $10-15k revenue
The pillow/bedding segment sure had some exciting press releases several years back. Khol’s has recently listed Suncliff products along with other random mattress outlets leading one to believe something is coming in. Losing hope. Expectation: $5-10k revenue
The inability to collect on Accounts Receivable is so puzzling. Why is Suncliff owed money and who do they keep extending credit to? Expectation: continued growth in AR but praying it reverses or they’ll go bankrupt.
Terpene Gems.. The CEO Jake has hyped these for months on Tik Tok and recently stated thousands sold. What does that mean?! I’ve seen products priced between $33-38 so maybe they are left with 60% after the website cut ($20 per unit)? Expectation: (3-5k units sold x $20) = $60-100k revenue
It is possible this is overly optimistic after Q3 revenues of $35k. Something is bound to break for this venture, $0.005 a share will not cut it. Expectation: $75-125k Q4 revenue
