Lifeist Wellness Inc V.LFST

Whisky what are your thoughts on this.

[83trekker]

They are talking Namaste on Reddit stock boards and this user posted this, what are your thoughts on what this person saids? A basher?


level 1

Ok-Midnight9757

 

1 hour ago·edited 1 hour ago

 

https://finance.yahoo.com/quote/N.V/financials?p=N.V

Actual DD from a financial expert for anyone interested:

Their operating income is -49.5M and the deficit has been growing year over year with the only exception being 2019 to 2020 in which 2018 to 2019's operating deficit was 3X. That said, 2020's operating income deficit is twice what it was in 2018. From their cash flows, most of this can be contributed to administrative costs (26M). That tells me the executives are using the cash generated from capital for personal income. They also have -34M in cash flow with 13M on hand. They have a current ratio of 3.5 which is bad, this indicates that they cannot pay their debts and have very little ability to react if things don't go well.

All in all, I calculate a 10-year enterprise value of 203.5M. It's a 6-year road to 0 EBITDA, currently at -25M. At year 10 it's projected to be 14.8M. Their EBITDA multiple for this industry averaged 13.75. Giving them a 10-year stock price of $2.84. At the current price of roughly 0.40, that's a 10-year return of 85% IF I don't include the shady cash deals to administrators (terrible).

This stock won't make you rich people.

level 1

Ok-Midnight9757

 

1 hour ago·edited 1 hour ago

 

https://finance.yahoo.com/quote/N.V/financials?p=N.V

Actual DD from a financial expert for anyone interested:

Their operating income is -49.5M and the deficit has been growing year over year with the only exception being 2019 to 2020 in which 2018 to 2019's operating deficit was 3X. That said, 2020's operating income deficit is twice what it was in 2018. From their cash flows, most of this can be contributed to administrative costs (26M). That tells me the executives are using the cash generated from capital for personal income. They also have -34M in cash flow with 13M on hand. They have a current ratio of 3.5 which is bad, this indicates that they cannot pay their debts and have very little ability to react if things don't go well.

All in all, I calculate a 10-year enterprise value of 203.5M. It's a 6-year road to 0 EBITDA, currently at -25M. At year 10 it's projected to be 14.8M. Their EBITDA multiple for this industry averaged 13.75. Giving them a 10-year stock price of $2.84. At the current price of roughly 0.40, that's a 10-year return of 85% IF I don't include the shady cash deals to administrators (terrible).

This stock won't make you rich people.

[randomtask]

You realize he has no idea how to read financials and no idea how to analyze any math whatsoever?  You'd be better off having a preschooler dissect that for you.

[hevin]

Not whiskey here, but I'd like to comment. I'm always suspicious of those who try to forecast a company for 10 years out, as there are too many intangibles at play in short and long term. For one thing, Meni has righted the once sinking ship and put Namaste on the road to being profitable. Also, he wouldn't have gotten institutional $ if they thought we had no chance to pay it back

[randomtask]

Personally, i'd put more weight in commentary from someone that understands financials over other posters that dont understand them at all and hope that NR's are going to pump SP. The PP's are not always insitutional, many times they just act as the brokers and sell the shares to accredited investors, that's how i pick up most of my positions.  I'd have to look through

[83trekker]

Thanks Hevin.

[whisky11]

OK- Midnight9757  he's talking very fast. The numbers are difficult to compare without spending some time at Sedar. Two and  half years ago, Namaste done successful PP's they issued shares, sold them for $3.20, it allowed them to cover deficit with cash. They don't have loans The company doesn't have debt . I think they have around $30 million cash , could be a couple

[randomtask]

See - has no idea about the numbers, just makes guesses... fake news, manipulations?  Look at who's talking here... regurgitating corporate fluff and treating it as gospel - very dangerous, especially for someone who doesn't fundamentally undertand general business or the stock market - buyer beware

[steveM45]

LOL, and there you have it....offering nonsense as an answer to a  serious question. BTW, the recent share issue was NOT institutional investment.  It was a broker who sold them to retail clients.  They made more profit on that deal than N has ever made to-date. Whisky - when is N buying Shoppers Drug Mart again? ...and when is the government handing N the monoploy to sell every

[83trekker]

Thanks for your input