Emerald Health Therapeutics Inc TBQBF

RE:MJ pumps and dumps ...

[TITOOO]

BarstoolSage wrote: "Nice financial summary at end. Q revenues of 100K and expenses of 440K"

I don't see what is so nice about it. One of the biggest mistakes you can make as an investor is paying too much for a stock that's not worth the premium. And with the marijuana stocks near their all-time highs, there are a lot of stocks that fall in the "expensive" bucket. The catch? Sometimes those expensive stocks can make great investments -- if the premium you pay is for a premium business generating returns that warrant the high price. But too many times, investors make the mistake of paying a premium for a business that isn't worth it.

 

There's good reason to believe that the market has simply gotten ahead of itself on this one. The bottom line is that EMH's shares are probably trading somewhere around 833 times its peak sales right now !!! (Market Cap $83.22M Q revenues $100K)

That's a rather insanely rich valuation any way you cut it.The fact that they lose money certainly doesn't help matters. In short, the all-things-marijuana craze appears to have juiced EMH's valuation beyond the company's underlying fundamentals or its near-term growth prospects, perhaps setting it up for a sizable pullback.