Emblem Corp EMMBF

Analyst Commentary

[deminimis]

https://archive.is/VGQ1S

I don't think analyst targets are worth the paper they are printed on but I thought I would link to this one because I found this commentary very interesting:

"As competition intensifies, we believe that cultivation will become less important as cannabis becomes increasingly commoditized. We therefore believe that capital allocation towards incremental capacity will create less value compared to differentiating a company's strategy. The significant risks of ramping cannabis production have been evident as many LPs have struggled to achieve forecast capacity. Moreover, we see the potential for these challenges to be compounded as companies start cultivating in much larger facilities. As such, we believe there is a risk that LPs may not reach peak production estimates or find a market for product if overall industry capacity grows as forecast."

Kind of sounds exactly like the things Emblem has been warning about in its business plan doesn't it? This is why they are priortizing investment in a pharmaceutical production lab and securing the patent rights for sustained release formulations over investment in cannabis production facilities. While there is definitely going to be a cannabis shortage at the beginning of rec it is increasing looking like that shortage will be fairly short lived and quicky turn into a glut.

[deminimis]

Also, even though I think the targets are junk it is at least interesting to note that their targets suggest that they believe the big players are overvalued and the smaller players, including Emblem, are undervalued. Hopefully, retail investors will start to take note of that.

[value1]

re-rated higher and hhigher again i suspect if they increase production and get back on track. wht wlse does pharma have in store.   this and one or two others are prime takeout candidates. lovin my warrants

[gkmackdadzzz1]

This post has been removed in accordance with Community Policy

[deminimis]

I think their comments regarding M&A being unlikley was in regards to consolidation amongst LPs. What I could totally see sometime maybe 4-5 years from now is Emblem being bought out by a big Pharma company, especially if the Dems win back the House and Senate down south and loosen up medical marijuana policy. 

[cressco]

It definitely instills confidence when market analysts start sharing the same perspective on the future of the sector and it's growth but for the life of me I can wrap my head around the target price of 2.5 per share. I mean here's one company that fully embodies what he's talking about yet he gives it a dismal 25% higher share price target. I get that attributing any value to the

[daryan1]

Well consider that they're currently only producing 660kg of weed and you'll get why its a slow mover. Investors have a very "it hasn't happened until its happened" kind of vibe