Fun with MathAssumptions:
Q3 NAV/sh .30 (as reported)
Premium for recently announced Liquidity events (LE) .05 (conservative?)
Growth in general Cannabis stocks Q4 50% *
Growth in general Cannabis market YTD 2021 20% *
Premium for dividend 5%
Today's estimated NAV/sh adjusted for recent & upcoming LE and Div.
((.30 X 1.50 X 1.20) + .05) X 1.05 %
= (54 + .05) X 1.05
= 0.62 Est FMV of shares
Current price. .18
SP Discount to FMV = .71% (.62-.18)/.62
* to address the complaint that the QCA portfolio probably does not track the general Cannabis market, I would agree for any given Qtr, however, I would also argue, that historically it has outperformed the general Cannabis market over time (past several years). This is in no small part due to R. Dent's access to ground floor opportunties, and added sweeteners such as warrants. In addition, as a merchant bank, the portfolio often earns high rates of interest on debt, with, in certain cases, convertable to equity options. Finally it has good access to the US cannabis market that has not enjoyed the upside that Cdn Cannabis sector enjoyed several years back. There is infinitely more capital that will chase US postions as they move slowly towards legalization over time (perhaps quicker now under the Dems)