NukeLaLoosh1 wrote: The Supreme Cannabis Company Inc. (FIRE-X) sits in a "strong" position to supply the recreational marijuana market, according to PI Financial analyst Jason Zanberg.
Believing Toronto-based company, formerly Supreme Pharmaceuticals Inc., is benefiting from a rapid buildup in its supply capabilities and a low cost operating model, he initiated coverage of the stock with a "buy" rating.
"Supreme was fortunate to be among the first LPs to go public and after it achieved its cultivation license, the company was able to raise over $75-million in capital before it was awarded its dried flower sales license," the analyst said. "This capital was utilized to quickly ramp up production capabilities and in October 2017, four months after achieving its sales license, Supreme has current capacity of 5,000 kilograms per annum ranking it 6th in Canada based on current capacity."
Mr. Zanberg set a price target of $4.50 for Supreme shares. The analyst average is $2.45.
"We believe The Supreme Cannabis Company represents good relative value in the cannabis sector," he said. "Its current capacity is comparable to many of the recognized leaders yet FIRE's market cap is a fraction of these companies."
courtesy Globe and Mail....