RE:Just a reminderHEXO reported 41 Million in sales on last QTR, PS ratio formula is based on top-line sales numbers. I am using trailing 4 qtr method and adding in a somewhat conservative percentage up-tick for my projected 2021 Q2 sales figure over pervious QTR to find revised PS ratio post-QTR report.
For future QTRs I am assuming the deal with ZENA will get voted through and adding in the total ZENA shares into the calculation based on what I can see for new totals and conversion ratio. For the sake of getting some guidance on PS I am using a fixed (and conservative) incremental increase in sales QTR over QTR considering the market is still emerging and stores (along with products) are still rolling out. My current calculations lack the additional sales from ZENA as well as the trailing 4 QTRs on ZENA however I hope to have that work completed soon enough.
Based on the numbers today and those I have projected my friends and family group are currently opting to accumulate position, defer swing trades, and postpone any rebalance in the position until we see a much better PS ratio.
Zaybure wrote: Hexo will report $32M, and Zenabis, $23M. If merged, this is a combined $55M, or $220M annually. The number of shares should be around 142M (Hexo 122m +1.2Bx.01772 for Zenabis). Taking a conservative multiple factor of 8, we get a PS at 12.40 CAD. For the year 2021, we could see a conservative increase of 50% and up in sale revenue with beverages taking off in the USA, plus USA legalization, plus EU open for Hexo to do business. GLTA.
(a reprise from my post on Yahoo)