RE:Slang Announces Record Revenue for Second Quarter 2021Liked the numbers. When factoring in the Hi-Fi Vermont revenues, which are starting to ramp up, the company looks to be tracking towards $50 million revenue over the next four quarters. Using a modest revenue multiple of 5X (most cannabis stocks are trading well above that with some in the double digits – for instance WEED is at 15X) puts Slang’s share price in the $0.50 range (estimate/projection). IMO.
From a profitability perspective it was another loss, like most cannabis plays. But factoring in ACG and HI-FI, which will start reflecting positively to the bottom line in a meaningful way, looks like the company has a shot at positive profitability within the next year. IMO.
This doesn’t include any potential premium that would come from positive movement on the US federal legislation front.
This is all IMO.