RE:Shares VS Price pointCurrently [WEED] is valued at $13B based on ~220 shares outstanding and $59.54/share; larger than the initial canadian market estimate (Top 4 producers are roughy valued 4-5 times the entire market; with each one valued as if they owned 100% of the marke individually). Revenue with 0 earnings. Share prices will plummet before they rise based on fundamentals.
Supreme, FSD and some others are moving up more gradually as I would expect, and will be more likely to hold their sp appreciation. Keep in mind the 1B shares out for FSD.
To get a WEED-like valuation, you are saying FSD would be valued at 59B based on 1B shares - roughly 10 times the initial weed market.
whipper7 wrote: One thing that i cant explain very well but get the idea of it is price point vs shares issued with this IPO. For any one whos new to this {that would be all of us} since this is the first time this type of IPO has been done in Canada. In Austrailia its more common but basicly you offer the IPO at a very low price point to start in HUGE case it was 18 cents. The valuation if you compare it to a normal IPO would have been in the $,s as the IPO open price prutty sure. Someone better at math than be might be able to put things into prospective as to what % differance this type of offering would have on the price effect in the early stages? i know for me it was a great idea as in time all things work its self out as a company presents there reports and the shares meet the new valuations to the company in terms of PE etc... In addition I wouldnt have been able to have as man shares as i do now. So win win. Not sure but i wonder if someone who knows how to do it with examples what the share price would be if FSD Pharma decided to go the regular rout in issuance for shares what ever that might be?? Interesting question to ask and even more interesting to find out how many dollars per share the IPO would have opened at had they not choosen this new {to Canada} method of determaning IPO opener price with so many shares to offer??
i see it as translating somthing like this. Say weed is $100 per share one day and it will be!! Based on there valuation and for instance HUGE has the same Valuation one day also down the road when this are 100% up and rolling. Highly likely senario. :] What would HUGE price be with the same PE if valuations and price point followed suit. 30 or 40 dollars per share? Anyone able to igure that out?