RE:RE:RE:RE:RE:RE:Update neededBigEarn wrote: Once the contracts start rolling in they will be announced back to back. Nextleaf already has contracts in the works.
I agree, with each NR the case to buy NL will be stronger, I am just not sure what it will take to reach critical mass. What will it take to for NL to be considered in the same class as LABS and VGW? It will be a combination of contracts, capacity, revenues and margin.
Another avenue open to them is to simply buy as much biomass as they can and sell the oil. Given the high margins and falling cost of biomass, it could be even more proitable than large contracts and they could turn over their capital quickly with their high capacity.
BigEarn wrote: Lets look at VGW. It was well under $1.00, then the contracts rolled in. It quickly went over that mark, and once revenue was reported it stayed quite high. Hit $4.91, a 4X bagger from the previous year!
Due to the losses in the grow sector, I think it will take more than it did in early 2018 to move the needle. It is becoming more important to show positive earnings than to throw out numbers of how big the market is even though I think there is much more potential here than in the grow sector a year ago, with no over capacity downside as you mentioned.
If it does start to move on news, I am ok with that too. I think we are sitting on a 20X bagger ($6 share price) based on today's share price in the next 2 year time frame (quite possibly one year) and a 40X or 50X bagger ($12-$15) in the longer near term time frame.