RE:Valuation 2020Right now I think we can all agree that cannabis companies trade on balance sheet not income statement. Look at Cronos, TGOD, 48 North, Aurora, Canopy, etc... Their sales to market cap is BAD compared to Zenabis. However their balance sheets are nicer. Better equity % and they all have a good cash position.
Zenabis has a huge production capacity and good sales, but their cash on hand is really low with still 30 million in debt due before the end of October. They don't want to get cash by diluting further at the price point of 0.10ish. So, they need to get cash from somewhere or keep pushing back debts.
I am cheering for Zenabis. Being greedy, I would like to see a dip down to the $0.10 mark so I can pick up a decent position on the cheap.
For me, they won't be worth a dollar within 365 days unless they get aquired. I think over the next 3 years they could reach one dollar. Right now, I stick them at a 90 to 100 million valuation (what I think their 2020 sales will be), so the current SP is a discount in my opinion.