GB Group Ord Shs GBGPF

Who thinks ACB is OVERVALUED?

[Goldboy10]

and why?

[Stonyguy]

That’s subjective, if you were looking at an industry that has been up and running legally for 40-50 years, the answer is YES the fundamentals aren’t there. Now this industry, at this stage, it boils down to what the market will sustain, so ACB is still on the upward trend because investors are willing to pay the price, so them NO they are not overvalued because I think SP is driven by sentiment

[VENMan]

Here's why I find ACB to be overvalued because taking the share price of ACB at $7.25 and multiplying it by all the outstanding common stock of 400 million gives you a value of $2.9 Billion. Now if you took that $2.9 billion and invested it into a triple A 20 year bond which pays 3.63% per year right now, shareholders would earn $105,270,000 a year! So if ACB can’t earn at least $105M a year

[Stonyguy]

VENMan Could you please provide comparison, using the same logic for CMED? 

[VENMan]

Sure: CMED has a price of $20.65 and 23 million common stock. So CMED has a Market Cap of $474M if CMED shareholders took that money and put it into a 20 year Triple A Bond which earns 3.63% they would earn $17.21M. So the Assets of CMED would have to earn more than $17.21M in the near future for this company to be fairly valued. Even at $20.65 it's a much more reasonable expectation than ACB

[VENMan]

When ACB was on BNN the guy at BNN asked what are your expectations for future earnings? If you read my prior post, I was expecting ACB with a $2.9 Billion Market Cap to say something north of $105M in earnings, but the ACB guy said, ask me next spring. The last time I herd that answer was in 1999 before the Internet Bubble Burst. When I was a young man, I went to an Itemus shareholders meeting

[Stonyguy]

So it’s reasonable to assume you are not in favor of this offer and think CMED will be a going concern in the future without ABC and the current offer on the table?  And thanks you for the assessment of CMED valuation.

[VENMan]

No worries always a pleasure. I think ACB knows what they're doing and have control of CMED. I respect the management of both ACB and CMED. What I have to ask myself is if I want to be a shareholder of ACB with a market cap in excess of $3 Billion right now and the answer for me is NO! The way I understand this deal is that as the  price for ACB goes down the share price for CMED should

[Stonyguy]

[dogger05]

What about Cmed oil facility that is under construction that can produce the equivalent of a 12 million 60ml bottles of oil....guess how much eev be that is at even just 80 dollars per bottle?

[Stonyguy]

That is would be good if they have sufficient inputs for the full scale of the oils facility.  I am not saying they don’t and it they do that’s great.  I was only speaking to the valuations of ACB.  Do you think the future oils manufacturing is playing a role in CMED valuation prior to Nov. 14?   

[dogger05]

it sure wasn’t being valued hence the reason Cmed is undervalued even at today’s valuation....ask yourself why acb future production is given such value? I watched some guy on bnn say that people investing in marijuana are gonna lose all their money.....I agree some people are gonna lose all their money, and it’s those who are investing in hyped up company’s like acb and cgc. I feel bad for those