RE:RE:RE:RE:RE:RE:Revenue Guesses Hey guys, adding my two cents ... based on fundamentals, company specific and industry specific outlook, my tea leaves can't make sense of current low share price. And when I see a large disconnect between share price and intrinsic company value, I see opportunity. Markets are NOT always efficient. And with (hat tip to scruffman) unrelenting fear and glass half empty thinking suffocating the industry, together with shorts hammering away, this makes for a sub $3 share price.
If anyone can point to anything specific about OGI fundamentals, i.e., why its future prospects justify share price under $3, then please explain.
Itsnever ... your comments about reduced profit margins are appreciated. And clearly a possibility. Still, I would add that, as non-insiders, we do not know what's around the corner. With months of persistent negative talk about the industry, it's typical for all of us to focus on negative outcomes. Don't get me wrong, investors must consider all possibilities. Still, this includes considering potential positives such as: cpg, pharma and/or beverage partner; potential for Hyasynth to meaningfully add to bottom line; eventual erosion of black market; white label chocolate revenue source; continued erosion of beer/liquor sales owing to increased cannabis sales; more provinces following AB and ON lead re: opening more sales channels; penetrating markets outside Canada, etc.
ACB, which is falling apart, has a market cap of 2.3B. Hexo is above 500m market cap after share dilution and firing 200 employees. OGI? 430m. Is this a rational valuation?
I'm not making any predictions other than staying long until I see facts that undermine my thesis that OGI will be among the CAD LPs that remain standing after the shakout completes.