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Sunniva Inc C.SNN

Alternate Symbol(s):  SNNVF

Sunniva Inc. is a Canada-based company. The Company is not engaged in any business.


CSE:SNN - Post by User

Comment by scoproon Apr 12, 2018 8:15pm
128 Views
Post# 27876835

RE:RE:RE:RE:California licenses great, However

RE:RE:RE:RE:California licenses great, HoweverIt's just a matter of time imo.  There is no way that SNN should be excluded from the normal investing/trading activity of the cannabis market, so according to their planned facilities and revenue capabilities, I see SNN as one of the major players in the North American space when their greenhouses are full.  A very conservative estimate: 200,000kg/year * $2750/kg (I have no idea what their revenue expectations are per kg so if anyone knows, feel free to enlighten me) = $550 million/yr.  With a price to sales of 4 (most or all comparable peers are over 25 at this stage of the industry) = a market cap of $2.2 billion.  At 50 million shares (no expectations, just throwing a number out there), that's $44/share, or over 500% of the current price.  A conservative estimate with just the initial B.C and California facilities. Then there's other potential markets and revenue streams, and perhaps improved margins.  In this early stage of the North American market, based on forward guidance and execution, I see no reason why SNN's price-to-sales/market cap wouldn't be multiples higher than 4, just like all SNN's peers. As a shareholder, I like how medical is currently at the core of Sunniva's business, as it's currently a more stable market in the U.S., and I would welcome any decision to move into the adult use space in any reasonable manner.
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