TSXV:EVE.H - Post by User
Comment by
Pinotblancon Jun 10, 2019 10:50am
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Post# 29811611
RE:Valuation
RE:Valuation StockMaison wrote: If we base the valuation stricly off the purchase of HIP by HEXO, EVE should be trading substantially higher. For example, the entire purchase price of HIP was $263 million which included $55 million in cash. If you back out the cash, the assets (470,000 sqft of greenhouse) are worth approximately $208 million. Based on this very recent market transaction alone EVEs assets are worth $442 million, plus cash minus liabilities which are roughly the same. This would put their share price at $1.67 (based on 265 million O/S). I would also like to stress that HIP was very desperate to sell their company and were not in a position to demand a high premium for their asset.
A bit frustrating but gives me a lot of hope that we're in for a pretty substantial price correction in the next 6 months or less.
JMO and GLA
SM
You can't compare the value of a company versus one that was taken over which means a premium was paid. The premium was already included in the case of HIP. What make you think that HIP was desesperate to be bought out? You have a link? It is not because HIP liked the deal that they were desesperate to sell.
Note; The average volume is quite low and the daily volume is very low.