Slang Worldwide Inc SLGWQ

RE:RE:People’s thoughts on SLNG?

[happyascanbe]

Here’s my two cents worth. The whole sector was in a downtrend from the February highs, which was only a Reddit induced rally (so had no real substance to it). But the sector has mostly reversed the downtrend and has shown good signs of bottoming. Most of the big caps have bounced nicely off the bottoms and slowly ticking higher.

I am also medium/long term bullish and continue to believe that H2/21 and into 2022 will show a stronger bid, for the cannabis sector, as the tailwinds in the U.S. marijuana legalization movement gain strength.
 
Specific to SLNG they continue to make impactful changes to the executive management and board. All which are showing that the company is preparing to take on the world more seriously. And operationally all indications are that revenues continue to be strong and closing of acquisitions (especially ACG) will reflect positively to the bottom line. So there isn’t too much to dislike about SLNG's future.
 
With more mergers/acquisitions expected in the cannabis space, I still personally believe that eventually they become an acquisition target from one of their largest partners (Canopy Growth or Trulieve). Based on that belief the current valuation is far too low based on conservative metrics and comparables of recent acquisitions (Liberty Health Sciences and Supreme Cannabis for instance – both sold closer to 7-8x revenue multiples and note Canopy is trading in the 13-15x sales multiple range). So with SLNG currently trading at about 2-3x expected forward revenue, the share price has to go higher, a lot higher. I’m happy to wait a bit longer. IMO.