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https://webcache.googleusercontent.com/search?q=cache:gkvoyLCbb2QJ:www.goldmanresearch.com/201510131043/Opportunity-Research/the-golden-ticket-in-the-cannabis-market.html+&cd=35&hl=en&ct=clnk&gl=ca
https://business.financialpost.com/news/agriculture/former-cara-ceo-tackling-marijuana-sector-through-golden-leaf-holdings-ltd
Golden Leaf Holdings is one of the leading players in the U.S. Cannabis market, which is estimated to grow from $2.7B in 2014 to $10.8B in 2019.One of the largest Cannabis oil and solution provides in North America, GLH already dominates sales its segment of the medical marijuana market in Oregon and is a direct beneficiary of the recently effective recreational marijuana sales in that state.
A vertically integrated entity, GLH owns a growing facility, a dispensary and produces extraction and vaporizer oil vape pens. Thus, GLH is poised to enjoy major margin expansion and economies of scale.
With some form of marijuana sales approved in 23 states and potentially 9 more on the way, GLH plans to replicate its model into other markets, beginning with Washington and Nevada.
GLH is the low cost, high quality provider of high demand products, has unmatched leadership, is well-capitalized, and will likely serve as an acquirer of complementary businesses.
The Company generates $1.5M in revenue per month and we project $13M in sales this year with positive EBITDA potentially achieved in 4Q15. We forecast CY16 revenue of $60M with EBITDA of $15M+ and that number could be much higher if a recently signed MOU results in an M&A transaction in Washington State.
Currently valued at a paltry 1x CY16E sales and a 75% discount to its key Canadian peer, GLH is the number one play and best value in the Cannabis space. Our $5 target is based upon 5.3x CY16E revenue, which is the low-end of key publicly-traded U.S. peers. Slated to begin trading on the CSE on October 14, 2015, we rate these shares Speculative Buy.