Here is some valuable DD by a friend of mine T
Post# of 2008
Posted On: 03/07/2016 9:21:54 AM
Re: Magnum7419 #1556
Here is some valuable DD by a friend of mine
Thanks Sleek
Taking a look at perhaps the largest cannabis stocks in America (GWPH) and Canada (TWEED/CGC) can be helpful to get a sense of how stocks can be valued by the market when there are few public competitors, particularly when they are viewed as sector leaders.
There really isn't any suitable comparison to TRTC, as it is not a pharma stock, nor is it purely a cultivator and retailer in a market (Canada) that is only the size of California. TRTC is both a cultivator and retailer, as well as a wholesaler, operating presently in California and Nevada but with a market size (America) 10X that of Canada. In addition, TRTC is the only real non-pharma cannabis stock in America, so it has an absolute monopoly on those investors who want exposure to the American Cannabis Economy (ACE), whereas both GWPH and CGC have several competitors in the public sector in their respective countries.
On the negative side, TRTC trades on the OTC exchange, selling a federally illegal product, with poor access to banking services, a shallow cash reserve and a history of using toxic financing to raise money.
Nevertheless, the following summary of GWPH and CGC's most recent quarterly results compared to TRTC's personally forecasted Q2 results is still educational.
GW PHARMA
GW:
Q4 revenue:
$5.4M
Q4 earnings:
LOSS of $26.2M
Market Cap:
$900M
TWEED (CANOPY GROWTH)
TWEED/CGC:
Last quarter's revenue:
$3.5M
Last quarter's earnings:
LOSS of $3.3M
Market Cap:
$300M
To make it a fair comparison, I chose to skip ahead to Q2 earnings, as that will be the 1st quarter where Blum Oakland revenues are included and TRTC will have both retail and wholesale revenue, which most accurately reflects their current business model and source of future revenues.
TRTC:
Q2 revenue:
$13M (Blum Oak = $4M, IVXX = $3M, EG = $6M)
$7M of pure MJ revenue
Q2 Earnings:
Unknown, but likely to be a small profit or a small loss of $2M or less
Market Cap:
$45M-$70M (current market cap and market cap with all Blum Oak shares)
Can you say UNDERVALUED?
Thanks Sleek
Taking a look at perhaps the largest cannabis stocks in America (GWPH) and Canada (TWEED/CGC) can be helpful to get a sense of how stocks can be valued by the market when there are few public competitors, particularly when they are viewed as sector leaders.
There really isn't any suitable comparison to TRTC, as it is not a pharma stock, nor is it purely a cultivator and retailer in a market (Canada) that is only the size of California. TRTC is both a cultivator and retailer, as well as a wholesaler, operating presently in California and Nevada but with a market size (America) 10X that of Canada. In addition, TRTC is the only real non-pharma cannabis stock in America, so it has an absolute monopoly on those investors who want exposure to the American Cannabis Economy (ACE), whereas both GWPH and CGC have several competitors in the public sector in their respective countries.
On the negative side, TRTC trades on the OTC exchange, selling a federally illegal product, with poor access to banking services, a shallow cash reserve and a history of using toxic financing to raise money.
Nevertheless, the following summary of GWPH and CGC's most recent quarterly results compared to TRTC's personally forecasted Q2 results is still educational.
GW PHARMA
GW:
Q4 revenue:
$5.4M
Q4 earnings:
LOSS of $26.2M
Market Cap:
$900M
TWEED (CANOPY GROWTH)
TWEED/CGC:
Last quarter's revenue:
$3.5M
Last quarter's earnings:
LOSS of $3.3M
Market Cap:
$300M
To make it a fair comparison, I chose to skip ahead to Q2 earnings, as that will be the 1st quarter where Blum Oakland revenues are included and TRTC will have both retail and wholesale revenue, which most accurately reflects their current business model and source of future revenues.
TRTC:
Q2 revenue:
$13M (Blum Oak = $4M, IVXX = $3M, EG = $6M)
$7M of pure MJ revenue
Q2 Earnings:
Unknown, but likely to be a small profit or a small loss of $2M or less
Market Cap:
$45M-$70M (current market cap and market cap with all Blum Oak shares)
Can you say UNDERVALUED?
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