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Bullboard - Stock Discussion Forum Newstrike Brands Ltd NWKRF

"Newstrike Brands Ltd is a licensed producer and cultivator of medical cannabis based in Brantford, Ontario. The company cultivates and sells both forms including dried and fresh marihuana."

OTCPK:NWKRF - Post Discussion

Newstrike Brands Ltd > SP should be 1.72....at least
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Post by Trader555555 on Oct 02, 2018 12:48pm

SP should be 1.72....at least

Assuming HIP can hit capacity of 40,000kg, and can sell it all.  Production costs are around $1-2/g, retail is around $7/g, lets ballpark $3/g profit, assume EBITDA of 8.  SP should be $1.72.

In an exciting new emerging market with a growing company, EBITDA could be 20, in which case SP should be $4.31
Comment by Charlie_Chan on Oct 02, 2018 1:03pm
Where are you getting your EBITDA? (Earnings before Interest, Taxes, Depreciation and Amortization) You gave figures of 8 and 20? These are not earnings?
Comment by Trader555555 on Oct 02, 2018 1:31pm
Ratio.....EBITDA ratio.
Comment by mathandmass on Oct 02, 2018 1:35pm
EBITDA? Yawn... This is TSXV, pre-revenue stock in a hype bubble. Just saying. Unless you're the sort of guy who was trading bitcoin on "technicals"... :)
Comment by Trader555555 on Oct 02, 2018 1:42pm
so many opinions out there.....at least doing some kind of vaulaiton guess is probably a good thing.  It's a fairly simple model, there is essentially one product and we know the production costs will be $1-2/g, we know annual capacity (~40,000kg), and we know approximate retail price (i.e. $7/g). So, whats a company like HIP worth if they sell 40,000kg?
Comment by mathandmass on Oct 02, 2018 1:52pm
The more relevant question at this point is will Jay manage to sell the company and if so, at what price per share.
Comment by Ggeeman on Oct 02, 2018 2:09pm
what makes you think he wants to sell , That's just speculation ? Also how come the entire sector is down in unison. How come nobody cares to dissect this issue mor3 ? It orchestrated imo . I still believe massive accumulation is happening here and that the trading algos are just buying and selling to eachother to maintain liquidity in this sector which is very volatile , and can be irrational ...more  
Comment by mathandmass on Oct 02, 2018 3:13pm
It's a speculation that actually makes sense given all the "business activity" in the past 9 months. I was predicting over a dollar by now, in October, yet... here we are. 70, 80, 75, 70 - aaand another month gone. Clearly, market does not think it's worth a dollar, despite license, despite supply agreements, despite stockpile, despite 120 million at the bank. And I kinda ...more  
Comment by silkroad007 on Oct 02, 2018 2:42pm
Well EBITDA is an actual number irrelevant of emerging market or hype.  I think your confusing EBITDA with P/E ratio. Regardless I agree that HIP should be way higher
Comment by mathandmass on Oct 02, 2018 3:14pm
I am not confusing it. I am saying it doesn't matter.
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