RE:RE:RE:RE:Revenues Coming UpIf they sell 10,000 kg per quarter, that’s 10,000,000 grams. Profit of $2 per gram. $20,000,000 profit. PE ratio 20. Makes MK 1,600,000,000. Divided by 556,596,226 shares. Share price = $2.87.
If the PE is higher or profit margin higher, it goes up from there. Doesn’t even factor in the 100M in the bank.
So if they simply grow and sell their moderate amounts and keep expenses down, share price should be much higher. Very hard to say the same for the big LP’s based on their current valuations and mission to take over the world.
quarterly reporting will tell it all. If they can land around 20M per quarter, SP has to be much higher. All based on the assumption they will grow, sell and be profitable.
based on this math, canopy would need to sell 75,000kg quarterly at the same profit margin and PE ratio to justify their current share price.
Using this math, HIP would only need to sell 2,000kg per quarter to justify the current $0.53 share price.
small LP’s may not survive because they can’t be profitable. HIP may just be in that threshold of production capacity to be profitable and a solid business model going forward.
This is is why I’m long on HIP.