ORAGIN Foods Inc V.OG.H

Longos valuation relative to Organic Garage

[Torontojay]

If we look at Longos grocery store which was purchased by Sobeys for $357 million for a 51% stake. At 36 locations this puts the valuation per store at 700/36 =~ $19.44 million. A typical Longos store is 20-40k square feet compared to Organic garage at 12-13k square feet. Taking the mid point of that range we get that Longos is approximately 2.4 times the size of an Organic garage store. This puts Organic per store valuation at $8.1 million or a total value of $32.4 million with 4 locations. The current market cap of Organic garage is $26.4 million or an enterprise value of around $28.3 million. With this low valuation you are getting the Future of Cheese purchase for free. 

This company will follow the same path as Longos and both are currently grocery stores I shop in.

[Renofund]

you have made NO mention of sales LOL ... 

[Torontojay]

How is looking at sales any different than looking at size? Sales and size for that matter are very much correlated.  Btw, sales mean absolutely nothing without profits.       

[paracelcius]

[citation=Torontojay] En quoi le regard sur les ventes est-il diffrent de celui sur la taille ? Les ventes et la taille d'ailleurs sont trs corrles.    Au fait, les ventes ne signifient absolument rien sans bnfices.        [/citation]it's only the location and the traffic they have to take into account, big doesn't mean a lot of traffic

[Renofund]

sales (and profit obv) and size are very different things.  You could have a store the size if costco, but if you arent selling anything it doesnt matter.  Plus, stores can be/are valued on a sales/sq ft basis.  You talk about the valuation of the longos stores, BUT, no mention of how sobeys actually valued each store - which is key LOL.  One cant simply take elementry long

[Torontojay]

You missed the entire point of my original post. I wanted to show that even if you apply Longos enterprise value per store and applied that to OG then you can see that you aren't paying much for the company at current prices. You were getting the " Future of cheese" acquisition for free. Even if Longos sales per square foot was  higher than OG, there was significant margin of

[Renofund]

subjective in suggesting that I look like an amateur.  Also makes no difference to me.  Your analysis shows you are.  Big difference.  Look, I am long the name, so we are both hoping to do well in the name.  Best of luck.