GREY:CHALF - Post by User
Post by
slimjim11on Mar 11, 2016 4:56pm
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Post# 24650121
Path to cash flow
Path to cash flowI've spent some time going through the listing document from October. Q3 revenue run rate was $1 MM per month. The number of extraction machines will double in Q4. So I expect GLH run rate of revenues to double within near-term horizon. The purchase of Trim at roughly $250/lb will fall to zero as production from grow facilities ramps. Management committed that overhead expenses would fall 25% this year. BMH did about $800k in revenue in August according to the excise tax reports. So the monthly run rate of revenues is on a predictable climb to $3MM, which is $36MM per year, while Trim and admin expenses fall. There are wildcards which could add to profitability, like the US tax issues, and the ability to do business with US banks. CGC recently traded at 27 times their run rate of revenues. 27 x $36MM = $972 million TEV. Where is the stock going? How high is high?