Aleafia Health Inc ALEAF

Improved FCF

[DCFrules]

I agree that Aleafia’s financial performance has been a disaster. However, one minor positive aspect that has gone unnoticed is that Aleafia’s free cash flow (FCF) improved slightly in Q1, although still negative. This is worth mentioning because a stock’s intrinsic value is driven primarily by the anticipated future generation of positive FCFs. Aleafia’s historic FCFs generated in 2020 Q2, Q3 and Q4 and 2021 Q1 are -$16.1M, -$10.4M, -$10.1M and -$7.1M respectively. Although this represents a slight improvement, Aleafia needs to generate positive FCFs and quickly.
Intrinsic value obviously depends on the FCF forecast used. For analysis purposes, I generated 8 FCF forecasts and applied a simplified FCF valuation technique. Aleafia’s intrinsic value per share ranged from $0.24 to $2.36 depending on which FCF forecast one is comfortable with. The concept of FCF, the simplified FCF valuation technique and my eight FCF forecasts, calculations and assumptions are described on my website:
 https://www.npvguide.com/valuing-aleafia-health-inc/

[Larbro]

Although one can truly appreciate the attempt to recognize somewhat of a silver lining here....I am sorry but there are some significant issues with this companies leadership. Hoping that someone steps up to buy Aleafia. The good news for anyone sniffing around is to simply wait a bit longer and pick it up for rock bottom...or purchase and sell off the pieces.

[ImpIications]

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[tovier]

A classic song  in dedication to this stock. https://www.youtube.com/watch?v=jIfu2A0ezq0 You grow 16 tons and what do you get. Another day older and deeper in debt. St. Peter, don't you call me 'cause I can't go I owe my soul to the company store. Let's all rejoice and find some nice songs to cheer us up!  This shorters run will eventually run out of track!

[ImpIications]

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