Cannabis earnings season is here, and there are some terms you should watch out for as they could signal trouble.
Key Points
- Investors should keep a close eye on these words as they can uncover problems under the hood of a company’s earnings report.
- These terms can signify that a company could soon be diluting its existing shareholders or that its prices are falling.
- If these words are showing up frequently on a company’s earnings report, it could be a sign to avoid the stock altogether.
Impairment
Impairment charges or write-downs are, unfortunately, common on many earnings reports in the cannabis industry. And while it is excluded from adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) calculations, that doesn’t mean investors should ignore it. That’s because an impairment charge or write-down means that an asset’s value on the balance sheet is incorrect or has changed. [Read More @ The Motley Fool]
The post 3 of the Dirtiest Words to Watch for in Cannabis Earnings Reports appeared first on Cannabis Business Executive – Cannabis and Marijuana industry news.
Source link
English
Arabic
Chinese (Simplified)
Dutch
French
German
Italian
Portuguese
Russian
Spanish