Good Natured Products Inc V.GDNP.H

RE:RE:The stock is in lala land

[Canoutchie]

As stated in the reply, Good Nature's sales are up 50%, an impressive achievement in a year when economic growth is severely muted by the Covid pandemic. It will be interesting to watch this company's sales and profit growth once the economy gets back on track with increasing vaccine availability in 2021. In addition to the economy, the fact that single use plastic bans are increasingly likely across much of North America just brings added upside to what's already been a good growth story.

The market is a forward looking mechanism. So with regard to price to sales multiples, the market is factoring in all these variables noted above... as the market does with several other green/growth stocks... Tesla, Shopify, being recent examples of how growth gets priced into a stock's valuation. As for profit, how long did Amazon go before reporting a single penny in profit? It was several years of red ink for Amazon, but the market knew that the company was poised for growth, and rewarded the share price accordingly.

Good Natured is poised for some phenomenal growth in the years to come. With backing from BDC (Business Development Bank of Canada), and backing from different levels of government looking to foster emerging businesses in new high growth sectors, as well as from retail and industrial customers looking for greener solutions with regard to packaging, I have confidence that this stock will continue to reward investors. Having said all that, this stock probably needs a few days to digest its recent gains, recognizing that it's still flying pretty much under the radar, without ever once having been mentioned in either the business press or media (BNN, the Financial Post or in one of the G&M's Globe Investor columns).