Post by
happyascanbe on Aug 28, 2019 9:44pm
Cheap Valuation
Based on the $100 million revenue guidance provided by the company means SLNG is only trading at about a 1.9x revenue multiple. Most cannabis companies (despite the recent multiple contraction over the last few months) are still trading at multiples much higher. Even the big boys like Canopy. Aurora, Curaleaf, and Aphria are trading at anywhere from 6 to 20+ revenue multiples.
As the summer doldrums come to an end shortly SLNG should start to climb to a more reasonable valuation - its insanely cheap right now.
Even if we look at it from a profit/net income perspective SLNG still stands to fair well as their business model is a relatively low expense/capex model. So they should fare well based on profitability as well.
Also from a seasonality persepctive cannabis companies have generally seen their best stock performance from Oct to March.
SLNG is well positioned to see some meaningful share price movement over the next 6 months IMO.
Comment by
jboom70 on Aug 29, 2019 7:52pm
Not to mention edibles this Dec in Canada. Everything so far has been State side. It;s what they do.