Labat Africa (JSE: LAB)

LAB at 3 cents is penny stock territory and I'm steering clear until there's actual revenue traction and the balance sheet stops looking like a horror movie.

LAB at 2 cents is essentially a penny play with massive dilution risk. Anyone holding this expecting a cannabis boom narrative, what's your thesis on cash burn and path to profitability.

Good Morning Everyone. LAB sitting at R0.04, market cap around 180m rand. Cannabis cultivation licenses in SA still the bottleneck, not the plant itself. Company needs revenue visibility before this moves, right now its just potential on paper. Watching for actual harvest numbers and SENS announcements on sales contracts.

LAB's burn rate is brutal tbh, they're going through cash like mad and revenue is still tiny relative to opex. The cannabis licensing mess in SA hasn't helped either, macro's killing small caps right now so equity raise looks inevitable, and that's gonna hurt holders. Long-term view hasn't changed but this one's gonna be messy before it gets better.

honestly the cultivation licenses are the real asset here but at R0.04 you're pricing in zero revenue until they actually scale. could read as the market's just waiting to see if they can actually compete against the bigger players moving in.

Eish, LAB sitting at R0.04 is brutal but the sector still has legs once the regulatory dust settles. Thing is, cultivation licenses are actually moving through now, not just talk anymore. Question is whether they can scale production before the big boys with deeper pockets come in.

cash burn is the real question though, cultivation ramp costs money and they're not moving rec product yet. if they can keep lights on til the market actually opens and pharma kicks in, then yeah the R0.03 entry is stupid cheap. but need to see quarterly burn rates when they drop results, otherwise this is just a license with no revenue story.

@momentumtracker_jse thin float gonna rip when rec opens, LFG

Rec market timing is the real question though. The med side should be moving already if the licenses actually mean something, but revenue numbers have been quiet. Thin float works both ways when sentiment turns sour, seen it happen before.

Thin float is the real play here, once the rec licensing actually moves this thing will get squeezed. Got filled at R0.025 last month, good day to top up at these prices if you believe the pharma route alone pays for the cultivation setup. Not selling at these levels.

LAB sitting at R0.03 is insane value if they actually execute on the cultivation licenses. cannabis plays globally are trading on future revenue potential, not earnings. south african market still locked down but once the regs open up this thing moves different. long hold for me.

Do you think LAB can actually turn a profit before the price gets hammered though. Sitting at R0.03 is lekker cheap but the cultivation margins in SA are still all over the place ngl, where's the revenue actually coming from right now.

LAB sitting at R0.03 is mental value for a cannabis play in SA with actual cultivation licenses, ngl. Once the rec market opens properly this thing has legs, pharma route alone could carry it. Thin float means when sentiment shifts it'll move hard.

Lab at R0.03 is basically a penny bet on whether SA's cannabis licensing actually happens. Company's got the licences and facilities, just needs the market to materialize. Easyequities crowd seems to like the risk reward here.

LAB at R0.02 is basically priced for the company to go bust. cultivation licence still pending, no meaningful revenue, cash burn is real. who's actually buying here besides bag holders hoping for a miracle.

LAB AT R0.02 IS CRIMINALLY CHEAP WHEN YOU LOOK AT WHAT THEY'RE BUILDING IN THE CULTIVATION SPACE!! EVERYONE SLEPT ON THIS SECTOR FOR YEARS BUT NOW THE LICENSES ARE LOCKED IN AND PRODUCTION IS RAMPING. LOOK AT WHAT TILRAY DID IN CANADA, THIS IS THE SAME PLAY HERE IN SA AND WE'RE GETTING IN AT PENNY STOCK PRICES!! BEST IS YET TO COME!!

LAB at R0.02 is basically play money at this point, but the medicinal cannabis angle in SA could actually work if they get the licensing sorted. Problem is execution, not the idea. Reckon we're waiting to see actual revenue before anyone jumps back in, GLTA.

nah look, LAB at R0.02 is literally pennies but the cannabis play in SA is still early, regulatory framework keeps tightening which is actually good for legit operators like this. if they can scale cultivation and get distribution sorted before the big players pile in, theres proper upside here, but rn its a waiting game on execution, not hype.

R0.02 bounce incoming, mark it

Come on boys push it up