Friday, November 15, 2019

Hexo (Hexo.t) admits to unlicensed growing at Niagra facility

"On July 30, 2019, shortly after the Newstrike acquisition closed, Hexo discovered that cannabis was being grown in block B, which was not adequately licensed. Hexo management immediately ceased cultivation and production activities in the unlicensed space."

That's a great Friday afternoon NR, but why does it take almost 4 months to disclose the material issue to stakeholders? Forget that. This space has seen multiple examples of underweight, bad product from these tards on Twitter.

Thursday, November 14, 2019

Canopy Growth - WEED.t loses $374m

Canopy Growth (WEED.TO) reported a $374.6m net loss in Q2, more than double expectations. The company was hit with millions in charges related to product returns and price changes. It was a $32.7m charge for returns, return provision and pricing allowances for its line of softgels and oils, as well as a $15.9m charge for a new packaging and marketing strategy. The combined charges amount to $48.6m.

Our 'take-a-way' hasn't changed. Oils and extracts aren't selling whatsoever and there is roughly 5 times more pot being produced than can be sold.

Wednesday, November 13, 2019

Trump demands negative interest rates from Fed

The self-described 'stable genius' is at it yet again.

Tuesday, November 12, 2019

CLO disconnect

Most commentators are suggesting a massive 'unofficial' QE is underway right now.
The New York Fed added $112b to financial markets on Tuesday. Overnight repos were $77b and 14 day $35b.
Quantitative easing is a monetary policy where a central bank buys government bonds or other financial assets in order to inject liquidity directly into the economy.

Thursday, November 7, 2019

Fed Repo markets are screaming - Update

The New York Fed added $115.14b to financial markets via temporary operations on Thursday. The liquidity additions came in two parts.

One was an overnight repurchase agreement with eligible banks totaling $80.14b, the other was a 14 day repo for $35b. 6.15b was oversubscribed. It was Oct 23 when the Fed announced it was increasing its temporary overnight repo operations to $120b a day from $75b.
US Fed repo operations, 2000-2019The Fed's Repo operation is aimed at ensuring the US financial system has liquidity. The shock came in September when Repo rates were jacked to 10%. The September crisis pointed to a growing disconnect. Last night the Fed added $72.53B, which is becoming common. Yesterday the 3rd consecutive interest rate cut was announced, bringing the gamed rate to a target range of between 1.5% to 1.75%.
“Go across the world and you’ll see either very low interest rates, or negative rates. The President wants to be competitive with these other countries on this, but I don’t think he’ll fire Jay Powell (even if I should!).” We should always be paying less interest than others!
Back in 1987 when I got my degree in Economics there was something called interest, and it was the cost of money. Extremely important it is to put a price on things. Negative interest rates then would have been some mad economic theory. Today it has become fact.

In 2016 Donald Trump accused the US Federal Reserve of using record-low interest rates to create a "false economy." In 2019 Trump assails and hounds the US central bank to cut rates, which they continue to do.
There is a growing group of alarmed folks who suspect the DAILY injections of tens of billions into the world's largest banking system is the 'canary in the coal mine' for a day of reckoning for interest rates that have already been too low for too long. A repo market malfunction can have deep repercussions. Spiking repo rates were a notorious early warning sign of the last financial crisis in 2012.

Between 1981 and 2000 the Fed's balance sheet to GDP was about 6%, today it's 18.5%. US debt has officially surpassed $23T. There has been $289B in newly issued debt in October alone.

Wednesday, November 6, 2019

All boats fall on an ebb tide

I paraphrase smart folks and/or shamelessly rip off their graphics regarding the pending implosion of financial markets. I figure if I can dumb it down enough so that I can splain it, everybody wins.

Case in point are corporate profits that are down whilst markets are up. That's another red flag.

Interest rates are coming off historic lows.

Monday, November 4, 2019

Michael Gokturk drops off earth with millions - Einstein Exchange

Einstein Exchange founder Michael Gokturk
The B.C. Securities Commission (BCSC) obtained an order last week appointing an interim receiver to oversee the Einstein Exchange, after filing a petition in B.C. Supreme Court claiming Michael Ongun Gokturk had run off. Under a flood of complaints, investigations and lawsuits, the Einstein Exchange shuttered its doors with more than $16m owing. BCSC executive director Peter Brady said the commission has also notified the RCMP of concerns about possible high level money laundering.

Saturday, November 2, 2019

Magic fails Pretivm Resources Inc. - PVG.t

Been following this since day one and I don't think anybody can deny the boys are high-grading. Q2 was ok after a truly horrid Q1, but the rubber hit the road with gusto in Q3. This pale elephant is in trouble deep for pretending to be a high volume operation when it might have been a successful low volume one .
See -----> Pretivm Resources Inc. - PVG.t