Post by
GUNSS on Apr 15, 2019 8:20pm
I'm tracking 290+ cannabis/hemp & related companies...
I'm tracking 290+ cannabis/hemp related companies listed in Canada & the U.S., I'm tracking their financials and share prices not the fundamentals of each... CGM was the only company out of the nearly 300 that closed at a 52-week high. Several others, 4-6 or so, traded above their highs but closed lower. The great thing about this stock is that there's only 55 M shares outstanding. Combined, 8-10 high net worth shareholders control a large block. I'm told they've been holding the shares for years and have no intention of selling now.
The average # of shares outstanding of my 290+ names is about 145 M. I eliminated 9 holdings with over 1 billion shares as outliers, and I eliminated 9 holdings with under 20 M shares to make it even....
The top 10 by Enterprise Value are trading at an average 79x trailing 12-month revenue. I eliminated Cronos because its EV/trailing 12-month Rev ratio is 448x.
The 80 companies ranked by EV from #41 to #121 have an average EV of about C$160M, that's 80 companies that I think could acquire CGM. CGM might be too small for the top 40 players (by EV).
Where is CGM on the list? #162. It was below #170 yesterday, it's moving up....