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Bullboard - Stock Discussion Forum Newstrike Brands Ltd NWKRF

"Newstrike Brands Ltd is a licensed producer and cultivator of medical cannabis based in Brantford, Ontario. The company cultivates and sells both forms including dried and fresh marihuana."

OTCPK:NWKRF - Post Discussion

Newstrike Brands Ltd > IT`S NOT ROCKET SCIENCE FOLKS
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Post by blobboy on Nov 14, 2018 6:20pm

IT`S NOT ROCKET SCIENCE FOLKS

Current total assets = $163 million. At todays close the MC = 553 million TSO X .47 s/p = $261 million, so we can see this company currently has an enterprise / growth value o $100 million...so to say HIP is over valued isn`t really that much of a stretch. Now consider further dilution is just 2 weeks away with the release of 91 million additional shares from escrow. The new calculation looks even less compelling. 644 million TSO x .2525 s/p = $163ish. million. 644 million x .47 s/p = $302 ish. million - a whopping $140 million enterprise / growth value. This is a some what rushed back of the envelope calculation but reasonably close. At todays close of 47 cents - HIP looks to be over valued by about $100 million or about 18 cents p/s which is factored into the growth profile, but lets not forget about cash burn - we are still losing money. With another 91 million shares about to hit the market in 2 weeks, well...you don`t have to be a rocket scientist to see more down side is evident. JMO, if I have erred in my outlook I am willing to hear another view point.
Comment by blobboy on Nov 14, 2018 6:36pm
now lets say we generate $12.5 million revenue per quarter - costs, will we still be losing money...sure looks like the big boys are.
Comment by samforhip on Nov 14, 2018 7:05pm
Hhahahahahahahahahahaha , I can’t believe you believe that people will believe that you believe that .
Comment by goldman777 on Nov 14, 2018 11:12pm
Where are your numbers loud mouth, give the guy credit for sharing his thoughts. Pretty sure he is not bashing but just being realistic, and I agree with him...this company is still over valued just based on shares out standing versus market cap. so judging from your shallow reply with nothing to back up your stupid post, do you think HIP is worth 550 million shares at 47 cents each or $260 ...more  
Comment by EagerBeaver1972 on Nov 14, 2018 11:57pm
Ok, all based on current production. Why about when they are at 35-40 0000 kg/year when Niagrara is complete? Half will be done by December 31, and the rest before spring. Doesn’t that add value?
Comment by Ggeeman on Nov 15, 2018 9:16am
so phock off and go to oil you greaser.. Why hang around if you made your choice, are you going ti take mozz's spot now???
Comment by silkroad007 on Nov 15, 2018 2:38pm
I posted this in June so teh actual numbers may vary slightly now that we have more finnancials but the valuation technique shoudl be the same.  Your way of thinking/math is just plain wrong in how companies are valued.  You wanted facts, here are facts and numbers. Here you go. 100M in bank.  If warrants get exercised another 120M cash = 220MM 2 facilities with over 25,000 KG of ...more  
Comment by silkroad007 on Nov 15, 2018 2:44pm
Another way to look at what your missing is. Instrinsic value of 160MM or .25/share and you said PLUS multiples on EBITDA.  Every market has different valuations, O&G, Tech, etc. Intrinsic + EBITDA X (industry avg multiple).... you are missing the biggest piece to the equation with your calcs.  Now speculate what EBITDA and industry multiplier will be and then you have a valuation ...more  
Comment by silkroad007 on Nov 14, 2018 7:46pm
You really need to do some reasearch on how to value a company.  You are so way off its comical as others have stated.  Spend 15 min on google before you try and back of the napkin calcualte the value of a company. Start with words like EBITDA or P/E ratio.  Heck the finnanicals that were just released incate a loss per share of .01, but your napkin math figures .18/share.  Do ...more  
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