GREY:BLEVF - Post by User
Comment by
wasagastaron Nov 21, 2016 11:58am
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Post# 25489894
RE:BE vs. PUF – comments on my analysis?
RE:BE vs. PUF – comments on my analysis?blueboy wrote: Fellow MJ investors,
In looking at pre-licensed MJ producers in Canada, I wanted to compare them to see where the better investment lies (at current prices, anyway). Here I will compare BE and PUF, since they appear to be similar in many ways:
- They both have new facilities close to Toronto, BE in Hamilton and PUF in London
- They are both in pre-licensing for the MMPR license in Canada, awaiting inspection (PUF is #17 on the list, but I can’t find where BE is on the list, since they don’t say in their NR)
- BE’s facility is initially 14,500 square feet and PUF’s facility is 8,800 square feet, and both have room for future expansion (BE’s production space will be slightly larger initially but from what I understand about the MMPR license, both companies will be initially licensed to produce the SAME amount of MJ)
- At Nov 18 closing prices, the market cap of BE was around $CD 36 million, while the market cap of PUF was only around $CD 5.5 million
With similar company profiles and similar status in getting their MMPR licenses, it would seem that PUF is far undervalued, at least as compared to BE. Even if one was to argue that BE was currently overvalued by even 100% (making their ‘correct’ market cap closer to $CD 18 million), then PUF still needs to triple from current levels to catch up to BE. If BE IS properly valued currently, then PUF needs to climb 7 times its current value to catch up to BE’s valuation.
Comments (positive and negative)?
Am I missing anything?
BB
What you are missing is that BE will have their inspection by next week likely and the license days later. Far more advanced along than PUF. PUF a good deal now too I agree but BE is at a better stage and the price should reflect a much larger market cap in the week to come.