Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Bullboard - Stock Discussion Forum Emblem Corp EMMBF

"Emblem Corp is a licensed producer of medical cannabis. It is intended to cultivate and cure cannabis for medicinal use. The group operates in the business segment of production and sale of medical cannabis."

OTCPK:EMMBF - Post Discussion

Emblem Corp > Revenues for 2019
View:
Post by spasticated on Jul 26, 2018 4:28pm

Revenues for 2019

So they claim in the news release that Natura Naturals' facility will be capable of producing 15000KG in 2018. This with Emblem's current capacity brings total production to ~17000KG. Is it fair to assume that in 2019 they will be selling 17,000,000 grams at average price $5 per gram? That would put us at $85,000,000 revenue in 2019. What kind of market cap would that warrant? Total share count is at ~151,000,000 Anyone want to complete the math here with multiples to calculate what kind of share price we could be looking at if all goes accordingly in 2019?
Comment by canaken1 on Jul 26, 2018 6:21pm
spasticated:- Theoretically speaking your figures at a glance appear OK. However, todays NR stated that those figures were under ideal conditions. So lets play devils advocate and deduct 15% from your figures of both (Natura + Emblem's) to call it a normal. (15 % deduction due to  wasteage, spoilage, shipment rejects minus etc etc) . Thats still a lot of cannabis to convert to oil ...more  
Comment by UserError on Jul 30, 2018 12:34pm
I would comfortably say that applying a 5X revenue multiple would be conservative. Not a great metric to use though since it doesn't consider their margins on the $5 sale price. 5X is conservative though, and that puts you at a price over 100% above their current price. Now, to also play devil's advocate, I would say those are numbers to apply to a newer LP. The fact that Emblem has been ...more  
Comment by vladdraq on Jul 30, 2018 2:09pm
5x revenues is damn low, micrsoft has 5x, but the MJ business is getting a way better yield. Even at a 5$ wholesale, anywhere between 8 and 15 X is more likely dependng on how much EBIDTA they generate. 2000 is not much i agree, but all those LP's with huge projeted sales ???? Organigrams has 22000kg and i thing she's top 3. At least with the Natura deal you know you have a decent ...more  
Comment by UserError on Jul 31, 2018 9:15am
I'm saying that's where they SHOULD be trading, not what their long-term projected price should be. I also mentioned it's a bad metric and that it was a very conservative guess. Also, need to consider the fact that once the purchase is completed, the market value will spike up due to the new shares being issued. I think Emblem can move up, but based on how bad the street sentiment is ...more  
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities
USER FEEDBACK SURVEY ×

Be the voice that helps shape the content on site!

At Stockhouse, we’re committed to delivering content that matters to you. Your insights are key in shaping our strategy. Take a few minutes to share your feedback and help influence what you see on our site!

The Market Online in partnership with Stockhouse