Posted On: 04/01/2014 1:08:01 PM
Post# of 56323
No it is not an indication of future FITX pps. First, wait and see what it actually trades and finds support at. Second you have to create an equal comparison by taking into account the different share structures of the companies. Third, no one knows what type of PE multiple the MJ industry will have until it becomes a legitimate industry compared to the high stakes casino it is now.
Will MJ be compared to tobacco or alcohol companies as a sin good? Will it be compared to agriculture? Medical? Consumer goods?
Based on the $5 billion future hopes, that would be approximately $1.47 earnings per share. Now choose the industry multiple you think MJ could be compared to. $30 pps would indicate a PE multiple of about 20 times earnings. Not impossible, but also years away as Bill himself has said.
Buy early and hold. Maybe have a separate position for flipping once this thing goes up. Have a key long position that just sits, but have some that you can buy and sell on the volatility on the way up...and down since this will probably get over-inflated with the license.
Will MJ be compared to tobacco or alcohol companies as a sin good? Will it be compared to agriculture? Medical? Consumer goods?
Based on the $5 billion future hopes, that would be approximately $1.47 earnings per share. Now choose the industry multiple you think MJ could be compared to. $30 pps would indicate a PE multiple of about 20 times earnings. Not impossible, but also years away as Bill himself has said.
Buy early and hold. Maybe have a separate position for flipping once this thing goes up. Have a key long position that just sits, but have some that you can buy and sell on the volatility on the way up...and down since this will probably get over-inflated with the license.
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