GREY:SNNVF - Post by User
Post by
scoproon Aug 14, 2018 11:48am
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Post# 28457314
Napkin math
Napkin math
Conservative mature Canadian cannabis industry total market cap at $7 billion/yr in sales at a 4:1 sales ratio is $28 billion. Currently the industry's market cap is about $18 billion, and the majority of that is an assortment of companies with much higher price-to-sales compared to SNN. We're already 7th or 8th highest revenue producer, and not one harvest yet! So, I'd say SNN is an exceptionally good buy. Does anyone know what the buyout (takeover/merger) premium would be (relative to a guesstimate mature 4:1 ratio) in this industry in it's toddler stage? I've seen some big bucks paid for market share, and for good reason. I've seen companies go for 10x, 20x, 30x, etc.