RE:RE:Buy on dips
MagicBeans wrote: Any thoughts on the price to sales ratio. I do not think this stock is cheap. I believe there is future growth priced in to todays stock price. On the other hand there is growth still to come even in Oregon alone. Its REC market offers expansion to GLH as that comes to fruition and I believe in the management team.
There are over a 100 million fully diluted shares on this name.
Some limitations because of US politcs as well.
We do know, I mean, I think – how we see the industry evolving is that there will be the development of state-based businesses. You can’t cross state lines. Like us, we’ll be able to export our corporate expertise in partnership with our local partners, but it’s really when Federal deregulation comes, that’s when we’ll see the massive change. At that point, we could either be a consolidator, or be consolidated.
Don Robinson CEO
https://www.midasletter.com/midas-letter-financial-radio-podcast/golden-leaf-holdings-inc-ceo-don-robinson-talks-cannabis-resin-and-recreational-marijuana-in-oregon/
Bullish point
Regarding Price/Sales ratio. Right now, at price 1.01$, the market cap is 62M$, and the quarterly sales is 3M Q3 and 4M$ Q4, so annually, it could be over 14M$. Then the ratio will be at 5. This is best one among MT, APH, CGC,OGI,EMH(in the order from small to big).
Bearish point
We do not know much shares will be issued on OTC exchange. It will share the revenue, profit, assets etc. So the initial impact will be negative. But, OTC will attract lot of new moneys and Americans are more willing to take risky bet. So, in mid term, the new money could push US side price higher than the Canadian side. They the canadian share price will get a free ride up.
And there are consistant anonymous selling. I think it is the underwriter selling the IPO shares to public to complete the deal. Because the slow growing pot industry in Canada, lot of early investors got serious burn because of the investment in pot stocks, so, this also impacts the market sentiment negatively.
My entry will be 1.0$ or 0.9$ and my exit would be 1.2. I will watch closely how the 1.1$ resistance is taken. And how the volume will be after the earning, this will be the factors to consider when I decide to exit.
I will not cut loss on this one because a small bet would hurt me that much.
The big advantage of this stock is it has
sales. This company can move its product quickly. For all the Canadian side pot stocks, they have the same troubles, their products have difficult time to find consumers. Some of the LPs will go bandrupt if recreational market would not be legalized in 2 years.
It is just my opion.