RE:RE:RE:RE:RE:Cannex Announces Record Financial Results for Q1 FY2019I would say there is limited downside if it doesn’t close. It would suck if it didn’t but it seems like the stock is trading as if the jetty deal wasn’t even happening. It’s trading at about 17X EBITDA if you annualized the latest quarterly data which is hard to even compare to other US weed companies because they’re all hemmoraging so much money right now it’s crazy that a profitable company is trading at such a low valuation.
Losing money isn’t such a big deal but it seems like most other weed companies are racking up enourmous gen/admin expenses and stock compensation. For example Sunnivas quarter ending March 31st had 5.16 million in revenue and 5.55 mil in selling gen and admin as well as 2.16 mil in share compensation. Like that’s just crazy I don’t know how shareholders are ever going to actually make money. Meanwhile cannex has actual profits and seemingly a management that is knowledgeable and committed to expansion that will have real capital returns but their market cap is the same as sunnivas. Just blows my mind right now.
But I guess that isn’t a bad thing because it just means that there’s an opportunity to buy more shares really cheaply right now I just wish I hadn’t bought so much at an average price of 1.10ish. I would buy more but I just don’t feel comfortable investing literally all my money in one company