RE:RE:RE:Baystreet Analysts : Share fair value price 46.70$ Mulletator:
Two things - In their Jan 03 PR, SNN said they are "Finalizing" supply agreements. Sure, it's not done yet, but that also means that they are in late stages.
The other thing is, and this is more important than the previous thing, is the Calif market. They will be producing starting 3Q 2018 (which is as close as only 6 months away).
Calif is already fully legal PLUS legal for edibles PLUS greater population than Canada.
Plus SNN has over $10 million revenues for the first 3 quarters of 2017, with revenues growing 40% Q over Q. So expect about about $14 million in revenues for 2017.
Plus no debt.
Plus enough cash.
If you think all that means SNN is very risky, then you should stay away from not just SNN but also ANY MJ stocks, imo.
mulletator wrote: That report is very positive. I'd be cautious about those valuations though. Those valuations are inspired by the insanely inflated market caps of other producers like Canopy and ACB.
The report states:
Note that the comparables valuation reflects what the market is currently paying for similar publicly traded cannabis companies. This may demonstrate potential upside for Sunniva’s stock price moving forward.
Further to that Sunniva doesn't have any contracts in place for sales. At least that I can tell. In Canada, sales will be largely through the provincial governments and contracts are going fast. Not necessarily a deal breaker for SNN but something to consider.
The stock is at a fair price right now and I'm surprised that it didn't drop today with the bloodbath in the rest of the sector. There is a lot of risk in SNN though. No licence in Canada (yet), no contracts and the BC facility is still a long ways out.