RE:Any explanations for market reaction today on Valens? it's the same pattern.. we get news of another contract or deal, it spikes first thing, by noon, the gains are erased and maybe we're up a penny or two.. we can't hold good news.
haunsolo wrote: I don't understand how this isn't up huge today. The partnership with Tilray, Canopy and Organigram clearly makes Valens the #1 processor.
The Tilray minimum is 15,000kg / annually. That is $15 million in revenue at a 50% margin of $7 million in earnings. At a 10x multiple that should add $70 million in market cap or about 20% of the market cap.
The margins might actually be higher than that and it could easily be much more than 15,000 kg. Maybe the market thinks that is not a big enough number?
Curious other thoughts. Maybe enough people just don't know about them.