RE:RE:ValuationMagnum wrote:
....what price area are you looking @ $3.00 - $4.00 for weed...? I agree still way too much froth in the sector....HMMJ/ETF should hit 5 or six bucks...
I really don't know what price.
Hopefully,someone far`smarter than I, with knowledge of AG stock valuations can share their analysis and sp estimations.
I use the potash sector as a comparison,because 10'ish years ago....a similar scenario with potash being the wonder commodity that the world needed to grow food.Euphoria over China, India, developing nations becoming richer and demanding /affording vastly more food.The pundits were full of projections of growth/demand/supply constraints and predictions of massive rises in potash prices....existing potash producers and junior potash companies sp's were sky rocketing and Mom and Pop investor's were rushing in with high expectations of huge profits and retirement nest eggs.Many junior potash companies also started getting funding from streaming deals,valuations were huge,based on expected future profits.
Seems familiar to what's happening in the MJ sector ? To me...YES!!!
Well,everything came crashing down....it turned out that the hungry world didn't need as much potash as those pundits claimed.
Here is a chart of the biggest potash company POT ,note the sp is approx a quarter of where it was at the peak of the "potash boom"....and this company was HUGELY PROFITABLE BEFORE THE BOOM !
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https://s1.postimg.org/48fz6nz27/pot.png