Ventura Cannabis and Wellness Corp CVHIF

0.60 SP MIN

[StudentR]

As state in their last quarterly and news release as of September their run rate is $30 mill. Or $7.5 mill quarterly. If we take that revenue and assume an operating margin of 22% they will have $1.65 mill EBITDA. I usually don't like EBITDA. However, for this company it is the perfect measure as they have no bedt so no interest expense, and they dont have mant assets that will depreciate. As well, the large amounts of cash will allow growth with no debt or dilution. As well, they are a fast growing company that reinvestes all their profits so EBITDA is a better measure than total earnings.
Assuming if they were to not grow anymore and do nothing (which will no happen). We take take the EBITDA and calculate our EBITDA per share. Using the approx. 214 mill shares o/s we have a quarterly EBITDA per share of 0.0077. Turning that into an annulaized run rate which is appropiate for this fast growing company we have a earning EBITDA per share of ~0.03.
If we use a conservative PE of 20 than their SP at the current levels is ~0.60, double of what it is trading at today. We use use their competitor AAC's PE of ~40, the company is valued at $1.20. Thats a quad-bagger.

REMEMBER, if you bought before summer and have lost lots of money its NOT from poor company performance. It's mainly from share dilution. I know it sucks in the short run, but if you are a true "investor" than you should only buy a company looking 3 years min into the future. The dilution is not good in the short run, but in the long run it is best that they have no debt in this soon to be increasing rate environment.

HOLD ON, BUY MORE, and may the odds be forever in your favour!!