Post by
ScarletSpider on Nov 19, 2020 10:31am
I Am Doing Further Digging But Here Is A Comparison I Can
cbii another company listed on the Canadian Exchange aggressively grew through prudent and systematic meaures. In 2018 it made 10 million in revenue which is not typical of the majority of juniors in their first year. In 2019 it was at 13 million and 2020 seems to be 12 million I don't have the exact figures. During this time and mid way through the year the company stated to be EBITDA positive not net overall positive but EBIDTA. This year they are voting on unlisting from the CNSX and relisting on the Venture. This is my strictest senes considered an uplisting as the CNSX market is for companies which are not as well captailized as those that list on the Venture Exchange. Cbii is showing strong and progressive growth and now has at least one analyst coverage with a buy recommendation.
Canafarm is quite similar as to what it is doing and what i see. Yes, it is a start up just listed in January and revenue projections from one coverge is 45 million for year's end another coverage if I get them correct was actually for this year 80 to 100 million coming from a writer at markettactic which is fairly aggressive and something I am not too sure about. The figures seems massive in comparison to what i have read that on online sales the company makes 750,000 a month which would mean there is more sales that are driven elsewhere. This company by the looks of it is made up of a family who grows certified organic hemp using glacial water and was acquired by another for 133 million in 2018.
As through evolution there are people who are the money and advertising people and the arrangements have led the company to acquire the manufacturing plant in New York where they do most if not all of their processing so the supply side is from BC Canada the manufacturing side in New York.
Markettatctic writers are claiming numerous advantages that the company has over others in the field including tilray and that it is all about branding. Again i will try to find the links it is goofy how things are trying to get them. If i can't get them i will have to see what the advantages are and will give the headings or if I really am inspired copy it and type it out as I am not making any of this up but know i need to source it.
In any case, there is what looks to be a huge push on this company and its product with at the current time it is trying to develop and create awareness for anti aging creams as well as an acne one--remember what i said about the company and how it has grown it had one or two products and has many many more now since then. Publicly this is less than a year old so yes it is extremely risky but just research cbii and see what they have done and look at how their backer is Merida Captial Partners New York that work with those in the cbd field. It may be possible that they may be involved in the future as a financing backer would make sense to me and they are really good actually the strong stable support that is helping cbii grow as it has.
Now cbii shares have a $1.10 target on their projected growth for the year. Given what i am reading about cnfa and with more revenue than cbii that should give you an indication where this will go but it is dependent on the bottom line and profit margins. The company looks to have done a raise in May for 28 million so you know that they are needing lots of monies to fund their growth and their projected revenue return if you take the low end of 45 million offsets things but i suspect the burn will continue to buy high and if there are any strategic acquisitions or tech needed to help the company grow.
Again, I am not overally concerned about all this as it is expected and by what i am seeing the company is moving really aggressively actually especailly for being only listed this year,. I still stand behind a possible uplisting in 2022 because of the aggressive drive, the amounts of monies being needed and generated and the need to find strong stable financial partners more reflective of those looking to build businesses such as Merida I am actually really impressed with them as that provides the backing and stability needed to then move to the next level. Cbii was able to get into bought deals because of this. I see quite the parallel.
when looking at what i bought into i feel more and more confident it is going to do really well longer term. I had said the same about cbii and i don't see anything different here both companies excellent corporate vision with very deliberate and well planned steps to grow. I bought cbii at .11 by the way--traded as high as .63. I bought here at .33 because i felt it is quite undervalued and I am convinced that this is an excellent run company so far. Yes, i put that figure out because either this company is looking to be as well and executed as cbii where i gained a lot on my cost average or it is not and i will lose but i don't see that right now. I am not going to let go of shares in these type of companies easily i did initially with cbii so i will now learn a bit in that regards as to if i have a sense of growth and process I will hold onto the shares and see where they start to level off. Companies like these are not that common and I am just speaking as of this point things do evolve no doubt i am looking for the better.
That said i like what i see so far and let's see what the financials show in terms of revenue but other things like i said i expect to see more losses and things expensed out as the company did get the processing plant and they are needing monies to grow--again you can't expect that this company will wipe out its losses just at this moment. I am looking as mentioned 3 years down the road 2023 earliest but plus that depends on strong offsetting revenue and keeping costs down so far what I have been reading the company seems to be doing. The rest is doing what it is doing growing its customer base!