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Newstrike Brands Ltd NWKRF

"Newstrike Brands Ltd is a licensed producer and cultivator of medical cannabis based in Brantford, Ontario. The company cultivates and sells both forms including dried and fresh marihuana."


OTCPK:NWKRF - Post by User

Post by blobboyon Nov 14, 2018 6:20pm
209 Views
Post# 28976285

IT`S NOT ROCKET SCIENCE FOLKS

IT`S NOT ROCKET SCIENCE FOLKSCurrent total assets = $163 million. At todays close the MC = 553 million TSO X .47 s/p = $261 million, so we can see this company currently has an enterprise / growth value o $100 million...so to say HIP is over valued isn`t really that much of a stretch. Now consider further dilution is just 2 weeks away with the release of 91 million additional shares from escrow. The new calculation looks even less compelling. 644 million TSO x .2525 s/p = $163ish. million. 644 million x .47 s/p = $302 ish. million - a whopping $140 million enterprise / growth value. This is a some what rushed back of the envelope calculation but reasonably close. At todays close of 47 cents - HIP looks to be over valued by about $100 million or about 18 cents p/s which is factored into the growth profile, but lets not forget about cash burn - we are still losing money. With another 91 million shares about to hit the market in 2 weeks, well...you don`t have to be a rocket scientist to see more down side is evident. JMO, if I have erred in my outlook I am willing to hear another view point.
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