OTCPK:NCNNF - Post by User
Post by
Zingiberon Mar 12, 2019 12:01am
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Post# 29471415
Why I Purchased 48North Shares
Why I Purchased 48North SharesThe Outdoor Scenario.
48North doesnt need a higher wholesale price.
$4 or $7 per gram of flower seems high to me. My thoughts:
Wholesale Price per Gram = $3.00
Cost of Goods Sold per Gram = .25
Gross Profit per Gram = $2.75
Gross Profit Margin = 91.6%
This is more than pharmaceutical industry type profit margins without the intermediate-term need to recoup heavy research & development expenses!
Now multiple by 40,000,000 grams. Can this level of production be completed for $10 million in Brant County; 46North. Sure seems possible to me. This makes for the start of a healthy P&L. With this level of cash flow you have a very dynamic business with the ability to expand with its own generated money.
This being the case with such dramatic growth, 48North is a company that could easily trade as high as 30 times earnings. Enjoy the ride!