RE:one to watchHi feenewbie.
Thanks for asking my input. Here u go
1. Now the gap between NAV and SP is about 30%.
2. The private holding is 40%. It is very difficult to estimate the true value of private holding so while 60% price is market based, value of 40% is uncertain.
3. CGOC holding of private and public are not very transparent (compared to HMMJ). Company always provides top 10 public holding in alphabetical order and not in % weightage order. It is difficult to know at a given time how much is company holding in large cap cannabis stocks.
4. Same is for private holding.
5. CGOC declares Q end results on the 60th day so every info in the filing is 60 days old.
6. So if investor discount SP 20% below NAV, it is conservative and safe. So CGOC in my opinion has 10% to go safely if they keep buy back.
7. Now new issues: Once the SP crosses $2.50, about 15M warrant will be in money and warrant holder will convert warrant to share. CGOC will get fresh money but NAV will go down. E.g. if NAV is $3.50 and all warrant are exercised at $2.5, the NAV will reduce to $3.00
8. Once SP crosses $2.60 (if I remember correctly) all special/performance l bonuses to managers etc. will kick in, causing cash outflow.
9. If even one private company go belly up, share may lose 10%
feenewbie wrote: It has been difficult to ongoingly watch the sp considerably below the NAV for quite some time. Still long and strong hrgoyal and appreciate your input as to why we may be stuck below the NAV. Hope some advertising works. There is a decent sized gap between the bids/asks this morning, so it looks like only a small number of sellers want out. Nice to have you on board itsthehitman - your comments remind me why I invested here in the first place. GLTA.