u/No_Cell6708

Can the business survive selling funko pop and beanie babies?

Feels like the store has basically become one those old 90s head shops that you saw in every mall, selling a mountain of useless paraphernalia. Bring in the crack pipes, novelty mugs, and old band t-shirts already. GME to the moon.

Ticker in Canada is XLY.TO

USA is CBWTF

All numbers in CAD

This isn't really meant to be a yolo/quick flip, not that it couldn't be. I'm planning on holding 5+ years

I've been invested in Auxly Cannabis for the last couple years with a current average cost basis of $0.11. Like many other Cannabis stocks, Auxly went public pre revenue and the market eventually caught up with it. After some convertible debt and a bunch of dilution, the company managed to survive.

It is now thriving. The CEO has been buying stock all year and has only upped his purchases more recently.

Why is it a value play: I'm predicting $45mm in Owners Earnings, a metric popularized by Buffet - this is FCF + maintenance capex) from what is currently a $270m market cap. I believe the business is currently trading at approx 6x FCF. If you had $270m right now and chose to buy all of Auxly, you would be paid $45mm in year 1 (assuming you don't want to expand ofc) This, imo, is what value investing is all about.

I asked our beloved friend, Chat GPT, to summarize some recent operational highlights:

\* Auxly generated \*\*$11.3M of operating cash flow before working capital changes in Q1 2026\*\*, up \*\*102% YoY\*\*, despite having a market capitalization that remains well under C$300M. The company is producing cash at a rate that looks disconnected from its valuation.

\* Revenue grew \*\*22% YoY to $39.8M\*\* in Q1 2026. This isn't a deep-value turnaround story with stagnant sales; the company is simultaneously growing and generating cash.

\* Adjusted EBITDA increased \*\*65% YoY to $12.3M\*\*, reaching a \*\*31% EBITDA margin\*\*. Few cannabis companies are producing margins at this level while still growing revenue above market rates.

\* Gross margin on finished cannabis inventory sold expanded from \*\*48% to 55%\*\* year-over-year. Margin expansion alongside revenue growth suggests operating improvements rather than growth being purchased through discounting.

\* Operating cash flow represented \*\*92% conversion of EBITDA\*\* in Q1 2026. The earnings are translating into cash rather than being trapped in working capital or accounting adjustments.

\* Cash increased to \*\*$42.7M\*\* at quarter-end while debt fell to approximately \*\*$45.0M\*\*, leaving the company close to a net-cash position.

\* Total debt is now only \*\*0.9x trailing-twelve-month Adjusted EBITDA\*\*, a leverage ratio that would be considered conservative in most industries

\* The company generated \*\*$38.6M of operating cash flow before working capital changes during FY2025\*\*, followed immediately by another \*\*$11.3M in Q1 2026\*\*, indicating that the cash generation is not a one-quarter anomaly.

\* Auxly has now reached the point where management has authorized a share repurchase program of up to \*\*68.9 million shares\*\*, an unusual position for a cannabis company in a sector where most peers have historically relied on dilution.

\* Back Forty remains the \*\*#1 cannabis brand in Canada\*\*, giving Auxly a competitive position that appears stronger than its market capitalization would imply.

\* Management stated that Q1 2026 produced seasonal records for \*\*revenue, EBITDA, and operating cash flow\*\*, despite Q1 typically being one of the weaker quarters for cannabis sales.

\* Revenue grew \*\*22%\*\* while the overall Canadian recreational cannabis market reportedly grew only around \*\*2%\*\*, implying substantial market-share gains.

\* Interest expense was cut nearly in half from the prior year as the balance sheet improved, allowing more operating profits to reach shareholders.

\* The company finished Q1 with \*\*$60M+ of net working capital\*\*, giving it flexibility to invest in growth initiatives without relying on external financing

\* Unlike many cannabis companies that have chosen growth at any cost, Auxly is currently demonstrating \*\*double-digit revenue growth, 30%+ EBITDA margins, positive net income, significant operating cash flow generation, and a strengthening balance sheet at the same time.

\* If annualized, Q1's \*\*$11.3M operating cash flow\*\* implies a run-rate of roughly \*\*$45M+ per year\*\*, which is a substantial percentage of the company's current equity value. Even allowing for seasonality and future investment spending, the implied cash-flow yield appears unusually high.

Ticker in Canada is XLY.TO

USA is CBWTF

All numbers in CAD

I've been invested in Auxly Cannabis for the last couple years with a current average cost basis of $0.11. Like many other Cannabis stocks, Auxly went public pre revenue and the market eventually caught up with it. After some convertible debt and a bunch of dilution, the company managed to survive.

It is now thriving. The CEO has been buying stock all year and has only upped his purchases more recently.

Why is it a value play: I'm predicting $45mm in Owners Earnings, a metric popularized by Buffet - this is FCF + maintenance capex) from what is currently a $270m market cap. I believe the business is currently trading at approx 6x FCF. If you had $270m right now and chose to buy all of Auxly, you would be paid $45mm in year 1 (assuming you don't want to expand ofc) This, imo, is what value investing is all about.

I asked our beloved friend, Chat GPT, to summarize some recent operational highlights:

\* Auxly generated \*\*$11.3M of operating cash flow before working capital changes in Q1 2026\*\*, up \*\*102% YoY\*\*, despite having a market capitalization that remains well under C$300M. The company is producing cash at a rate that looks disconnected from its valuation.

\* Revenue grew \*\*22% YoY to $39.8M\*\* in Q1 2026. This isn't a deep-value turnaround story with stagnant sales; the company is simultaneously growing and generating cash.

\* Adjusted EBITDA increased \*\*65% YoY to $12.3M\*\*, reaching a \*\*31% EBITDA margin\*\*. Few cannabis companies are producing margins at this level while still growing revenue above market rates.

\* Gross margin on finished cannabis inventory sold expanded from \*\*48% to 55%\*\* year-over-year. Margin expansion alongside revenue growth suggests operating improvements rather than growth being purchased through discounting.

\* Operating cash flow represented \*\*92% conversion of EBITDA\*\* in Q1 2026. The earnings are translating into cash rather than being trapped in working capital or accounting adjustments.

\* Cash increased to \*\*$42.7M\*\* at quarter-end while debt fell to approximately \*\*$45.0M\*\*, leaving the company close to a net-cash position.

\* Total debt is now only \*\*0.9x trailing-twelve-month Adjusted EBITDA\*\*, a leverage ratio that would be considered conservative in most industries

\* The company generated \*\*$38.6M of operating cash flow before working capital changes during FY2025\*\*, followed immediately by another \*\*$11.3M in Q1 2026\*\*, indicating that the cash generation is not a one-quarter anomaly.

\* Auxly has now reached the point where management has authorized a share repurchase program of up to \*\*68.9 million shares\*\*, an unusual position for a cannabis company in a sector where most peers have historically relied on dilution.

\* Back Forty remains the \*\*#1 cannabis brand in Canada\*\*, giving Auxly a competitive position that appears stronger than its market capitalization would imply.

\* Management stated that Q1 2026 produced seasonal records for \*\*revenue, EBITDA, and operating cash flow\*\*, despite Q1 typically being one of the weaker quarters for cannabis sales.

\* Revenue grew \*\*22%\*\* while the overall Canadian recreational cannabis market reportedly grew only around \*\*2%\*\*, implying substantial market-share gains.

\* Interest expense was cut nearly in half from the prior year as the balance sheet improved, allowing more operating profits to reach shareholders.

\* The company finished Q1 with \*\*$60M+ of net working capital\*\*, giving it flexibility to invest in growth initiatives without relying on external financing

\* Unlike many cannabis companies that have chosen growth at any cost, Auxly is currently demonstrating \*\*double-digit revenue growth, 30%+ EBITDA margins, positive net income, significant operating cash flow generation, and a strengthening balance sheet at the same time.

\* If annualized, Q1's \*\*$11.3M operating cash flow\*\* implies a run-rate of roughly \*\*$45M+ per year\*\*, which is a substantial percentage of the company's current equity value. Even allowing for seasonality and future investment spending, the implied cash-flow yield appears unusually high.

Nobody here ever talks about them.

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Yes, a lot of people got burned when they invested in pre-revenue Auxly (welcome to the sector), the better part of a decade ago. There was a lot of dilution required in order to keep the company alive. It worked, and they are absolutely thriving, unlike so many others.

​

Anyone that's been paying attention knows exactly how strong they are.

​

You see those margins? I dare you to find me a cannabis producer near their valuation that comes close.

​

You see that free cash flow? Do you like making money? Do you know Warren Buffet? He likes making money. If he was a zoomer, he'd be buying Auxly.

​

Imagine you had $260 million dollars in your pocket right now and had the option to buy a company. If you bought all of Auxly, they would be paying you ~$40m in pure cash in the first year. That is a very good number.

​

Keep ignoring them and maybe they'll still amass enough cash to buy up your snicklefritz factories and teach their management how to make money.

How could this possibly be difficult or expensive to implement?

Edit: if you take a screenshot of your home screen you'll be taken to a "share" screen that displays a bar chart and a semi-donut chart of your portfolio weightings. This is very nice. My only complaint is that I have to go take a screenshot whenever I want to see it.

First time playing TBC and I'm just wondering why this isn't a thing? I'd love to hop on and queue or a quick game or two without having to organize something with a guildmate in advance. I feel like a lot more players would participate.

Edit: I'm not suggesting 1v1s (although, sure, why not). I just want to be paired with other players automatically

Is this just another form of gambling for kids? You're basically buying digitized, pre-opened and repackaged booster boxes that represent real pokemon cards, or am I missing something here?

Gme gme gme gme gme gme

By Susan Watkin

Publisher - Labyrinth Learning

ISBN - 978-1-64061-365-2

EBook ISBN - 978-1-64061-366-9