Newstrike Brands Ltd NWKRF

RE:RE:Just for Fun... Value Position of HIP to ACB & WEED

[quinlash]

Yes, totally agree, the 52 week high on HIP was when the CanniMED takeover was in talks however this was also before Newstrike had a license, before legalization and before provincial agreements.  HIP also had a 80 million dollar cash injection after Cannimed broke the contract.  

Lots has changed for HIP since the 52 week high and all drastically in the favor of a high evaluation. 

My decision to buy HIP was made weeks ago and I used .84 as a rational high on HIP, can't recall at this moment what the numbers were on ACB and WEED that I used however it was essentially the high that was held for over 30 days (I believe that's what I roughed out...) anyhow, HIP had a dramatic difference in value and swayed me from entering on ACB and over to HIP.

Other factors I considered were the evaluated cash / financial health of each company.  For that I simply relied on RBC again... ACB and WEED were evaluated as moderate however HIP was rated as being in strong financial health.

The final thing I took into consideration was, what I call... the wildcard... we already seen WEED make several big deals that drove the price up so I do not see it being realistic (or maybe I could say probable...) that another massive deal will be announced by WEED.  ACB has not had a major deal and they are a major player that could actually support something like a brewery deal... so I give them a 50/50 chance of making such an accountment in Q1.  HIP, with its provincial deals and strong financials and a very likely target for an acquisition.
I have worked in management for 20 years and I know when we would consider acquisitions and why.  Large deals such as an this are best made early in the year so rather than assign a 50/50 chance to HIP making a deal I see it slightly more probable that a acquisition of HIP will occur for HIP before a large deal is announced for ACB

Stepping back and looking at it all I decided that the ROI on HIP, and it’s financial health and stability with provincial deals made the investment relatively low risk.  The wildcard play being slightly in favor of Newstrike just sealed the deal.
 
Again, just sharing my thoughts and views here.  Anyone reading this should be doing their own DD and only investing what they can afford to live without for an extended time, worse case what they can afford to lose.
 
GLTA