Nextleaf Solutions Ltd C.OILS

Am i the fool?

[BlueShips]

Say we earn $5mm gross revenue in Q1 FY2022 (extrapolated from current information on BC sales, sales already in I/S, estimations on other channels such as Quebec, Sask, Atlantic Canada, etc.), with zero revenue growth over the year. This would bring Nextleaf to roughly $20mm in annualized sales. 

Reviewing other multiples for competitors in the firm (ie. Valens, Neptune, MediPharm, etc.), they're all trading anywhere between 5-9x sales. If Nextleaf is positoned on the lower end of that scale, which to me would be unlikely given a current P/S of roughly 12x, the capitalization of the company amounts to $100m. Given there are aroung 123,000,000 shares outstanding, the math comes to $0.81/share. 

These, in my opinion, are all fairly modest growth and multiple assumptions as companies with a competitive advantage genereally have higher multiples to accomodate the sales growth. 

Thoughts?

[stealthct]

did you come up with while drinking a beverage using Rapid Emulsion Tech?  LOL

[shneps]

Once again Stealth you missed the bus. There is nothing wrong with the Rapids Emulsion Tech. Nextleaf was not prepared to give it away at a loss (Like Vivo does with Vertosa). Nextleaf and Bevcanna were supposed to be partners in the beverage infusion business and Bevcanna basically said, "We want it cheaper or we'll go to someone else" (Bevcanna also screwed their grower Clearwater

[shneps]

What I would likee too say is I certainly did not appreciate finding out about the State B issue through somebody else's NR. Vertosa announced this September 15th and we are only finding out about it now. Purposely hiding information from shareholders as opposed to releasing information in a professional means, is not good in my opinion. Has left a sour taste in my mouth. They certainly need

[stealthct]

missed the bus? you'd be lucky to make over 1000% in year. goodluck achieving that in 10 years. Welcome to the Cryptoverse. Take a look at the calendar. 

[BlueShips]

The fact you're still monitoring this thread regularily speaks volume. Dust bag.   -BS

[Adventurous]

Your numbers are in line with mine, though I am aiming for $1.00. Reasons: There will be growth in the sales volume: at least two major markets (Alberta and Ontario) will be added, plus Manitoba and more sales along the way in other provinces once the illegal market is tamed. For me IP has value, at least speculative value.  And don't forget the wholesale of cannabis oil to

[Salbrom]

My target for the next 6 months is bitween 0.75-1.25 based on surprises but in a perfect world Nextleaf should be able to generate  240M just in Canada with 70M net profit 

[BlueShips]

$240mm top line, with $70mm bottom line is a stretch. At least for FY2022. That's implying net margins of 30% so we'd really need to see economies of scale start to kick in. Their current gross margins are dismal (simply due to weak reveneue), but i suspect that will change for Q1 2022. Operating margins should also be quite impressive later on in the fiscal year given their low overhead

[Salbrom]

How much capacity a day now 600kg  a day processing  times 365 days that's 210,000 kilos a years they only need around 100,000 Kg to generate that kind of money yes they can in the current facility what's missing is great products to eat up market shares 

[BlueShips]

[Adventurous]

And among unforseeable factors I would list: a number of companies going under (LABS, BEV, etc.); a sudden race to concentration in the oil extraction industry; and a US federal green light to cannabis, together with rules on contaminants, etc., which would exclude a number of current players.

[shneps]

I agree that with new rulings their will be a ton of US business that go belly up.  It's a wild west show down there right now. A lot of whiners are going to come out of the wood work as regulations come into place. Regulations were established in Canada before legalization.  Us is doing it backwards and are now having to retrace.