RE:Namath is oversoldRogerthat2 wrote: Simple comparison: Canopy is trading at plus 70x earnings, Namaste is trading at less than 20x earnings, Cronos is also trading at 70x earnings with less revenue than N. The sector average would dictate a $5 ish stock value for Namaste.
If you're going to be using pricing metrics, you should at least understand the difference between sales and earnings. Namaste currently does not have positve earnings so therefore you cannot use P/E ratio.
You also shouldn't compare Namaste to Canopy as they are two completely different companies operating in the same sector. Canopy will be the leading supplier of marijuana come legalization and will have the largest producation capacity for quite some time. Their strategy is to mass produce good MJ at the lowest cost possible, gain supply agreements with provincial governments and expand globally.
Namaste is only servicing the medicinal market and are dependent on patients acquisition, supply agreements with various LPs and hopefully global adoption of their NamasteMD app so they can apply the same strategy elsewhere.
Although they both operate in the same sector, Canopy will benefit tremendously come legalization whereas Namaste will take some time to build their patient base and accumulate revenues. According to Sean, there is a strong possiblity that we produce positive earnings by end of the year.