Q1 results in the bag today.I'm still showing a more than doubling of the overall Cannabis market from Sept 30 to March 31 (today) as measured by two ETFs.
Dec 31 (full Year) financials are expected around end of April (if 2020 is any indication)
March 31 (Q1) financials expected by mid-May (if 2020 is any indication)
I expect TWO VERY above average, back-to-back, Qtrs based on the general cannabis markets (as measured by ETF's) and anecdotal posts on the success of some of their postions (read here on SH). In the past 6 months, the general cannabis market has more than doubled since Sept 30 (this since the last time Quinsam's #'s were reported - when NAV/sh was .30) ! Some of that impressive overall market gain, should be reflected in our Q4 Dec 31 reporting (expected within a few weeks time). The remainder of the good news story will be disclosed in about 6 weeks time - when Q1 is reported sometime in May.
Whether Quinsam will exceed or fall short of the overall market increase remains to be seen. Much will depend on liquidity events, ability to exit postions on spikes, individual names owned, whether profits have been or could be taken, etc. Many investments still remain at early stage, pre-market determined valuations (e.g. with zero valuations assigned to warrantes etc.). On the other hand, they have many investments that were being publicly traded back in Sept 2020, and continue to trade publicly today. Many of those companies have "multi-bagged" since then. Did QCA capitalize? Many of those names were detailed here by a few posters.
The news coming out of the US (QCA owns pcs. many ground floor US companies) has been favourable since the switchover from Republicans to Dems. More good news to come?
So the question is, will the stock price continue to languish? For the past while it has been trading at only 60% (.18/.30) of it's underlying historical valuation (as at Sept 30). Will it double if the portfolio is shown to have dooubled just as the general market has, from Oct 1 to March 31? Or does it remain stuck? If stuck at .18 then it would be even more drastically mis-priced than it is today. For example at .18 it would be trading at just 30% (.18/.30x2) of its underlying, yet soon to be updated current valuation (again: assuming a double in the portfolio value since Sept 30, simply mirroring the general cannabis market)
Does the end of the black out period, and this seemingly severe undervaluation, drive the next round of buy-backs and insider buying? Will that give us a catalyst to at least return to (a still underwhelming) 40% discount off of say a .60 NAV/sh? That would mean a SP of .36! Even at that pathetic level (discount to NAV/sh), it would represent a double for every holder/buyer at today's price. Remember, consistent back to back returns by Roger et al, should start to justify a premiun to underlying NAV/sh, not a discount.
Stay tuned.
We will find out very shortly (3 to 6 weeks).
MM