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Slang Worldwide Inc C.SLNG

Alternate Symbol(s):  SLGWF

SLANG Worldwide Inc. is a Canada-based cannabis consumer packaged goods company with a portfolio of various brands. The Company owns, licenses and/or markets five brands, which serve three categories: flower, inhalable concentrates and ingestible. Its portfolio consists of three distinct consumer packaged goods (CPG) brands, one retail brand and a product portfolio of 30 stock keeping units (SKUs). The Company brings its products to market through three channels: Core Markets-Colorado and Vermont, Emerging Markets-Strategic Partnerships in nine States and THC Free-Distribution & Ecommerce. Its Core Markets include Colorado and Vermont. Its Emerging Markets include Florida, Maine, New Mexico, Michigan, Pennsylvania, Washington, West Virginia, Maryland and Puerto Rico. Its THC Free includes dry herb vaporizer, the Firefly 2+, line of Alchemy Naturals CBD gummies, as well as batteries and various other product components including packaging and hardware.


CSE:SLNG - Post by User

Post by happyascanbeon Aug 28, 2019 9:44pm
247 Views
Post# 30077440

Cheap Valuation

Cheap ValuationBased on the $100 million revenue guidance provided by the company means SLNG is only trading at about a 1.9x revenue multiple. Most cannabis companies (despite the recent multiple contraction over the last few months) are still trading at multiples much higher. Even the big boys like Canopy. Aurora, Curaleaf, and Aphria are trading at anywhere from 6 to 20+ revenue multiples.

As the summer doldrums come to an end shortly SLNG should start to climb to a more reasonable valuation - its insanely cheap right now. 

Even if we look at it from a profit/net income perspective SLNG still stands to fair well as their business model is a relatively low expense/capex model. So they should fare well based on profitability as well.

Also from a seasonality persepctive cannabis companies have generally seen their best stock performance from Oct to March.

SLNG is well positioned to see some meaningful share price movement over the next 6 months IMO.
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