SureTrader
Interactive Brokers Advertisement
Home > Boards > Canadian > Cannabis > Emblem Cannabis (TSXV:EMC)

$3.80 target

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (2) | Next 10 | Previous | Next
doughy Member Profile
 
Followed By 2
Posts 63
Boards Moderated 0
Alias Born 09/01/09
160x600 placeholder
L'OCRCVM permet la reprise de la négociation - EMC "PR Newswire (Canada)" - 10/17/2017 10:32:00 AM
IIROC Trading Resumption - EMC "PR Newswire (Canada)" - 10/17/2017 10:25:00 AM
Suspension de la négociation par l'OCRCVM - EMC "PR Newswire (Canada)" - 10/16/2017 4:59:00 PM
IIROC Trading Halt - EMC "PR Newswire (Canada)" - 10/16/2017 4:57:00 PM
Emblem To Disrupt $60 Billion Opiod Market With Cannabis Based Sustained Release Formulation "InvestorsHub NewsWire" - 10/4/2017 9:30:00 AM
L'OCRCVM permet la reprise de la négociation - EMC, EMC.WT "PR Newswire (Canada)" - 10/3/2017 5:03:00 PM
IIROC Trading Resumption - EMC, EMC.WT "PR Newswire (Canada)" - 10/3/2017 5:01:00 PM
Suspension de la négociation par l'OCRCVM - EMC, EMC.WT "PR Newswire (Canada)" - 10/3/2017 3:36:00 PM
IIROC Trading Halt - EMC, EMC.WT "PR Newswire (Canada)" - 10/3/2017 3:34:00 PM
MJAC 2017 Speaker Update - How venture capital and cryptocurrency are converging as the future of cannabis investing "InvestorsHub NewsWire" - 8/30/2017 10:29:33 PM
PotNetwork Holdings, Inc Confirmed for MJAC 2017 "InvestorsHub NewsWire" - 8/28/2017 10:43:55 AM
MJAC 2017 International Cannabis Conference - Discount Code "InvestorsHub NewsWire" - 8/24/2017 8:40:00 AM
MJAC 2017 - Speaker Update - Investing In The U.S. Cannabis Market "InvestorsHub NewsWire" - 8/22/2017 1:27:13 AM
Investors Eye Sweet Spots in Canada’s Booming Cannabis Market "NetworkNewsWire" - 8/16/2017 8:45:00 AM
L'OCRCVM permet la reprise de la négociation - ACB EMC OGI "PR Newswire (Canada)" - 4/11/2017 10:23:00 AM
IIROC Trading Resumption - ACB EMC OGI "PR Newswire (Canada)" - 4/11/2017 10:18:00 AM
Suspension de la négociation par l'OCRCVM - ACB EMC OGI "PR Newswire (Canada)" - 4/11/2017 10:12:00 AM
IIROC Trading Halt - ACB EMC OGI "PR Newswire (Canada)" - 4/11/2017 10:06:00 AM
Exciting news! Emblem announces a bought deal financing of $10,000,000 "InvestorsHub NewsWire" - 1/9/2017 8:30:00 AM
L'OCRCVM permet la reprise de la négociation - EMC "PR Newswire (Canada)" - 1/6/2017 7:46:00 AM
IIROC Trading Resumption - EMC "PR Newswire (Canada)" - 1/6/2017 7:45:00 AM
L'OCRCVM permet la reprise de la négociation - EMC "PR Newswire (Canada)" - 1/5/2017 4:57:00 PM
IIROC Trading Resumption - EMC "PR Newswire (Canada)" - 1/5/2017 4:52:00 PM
Suspension de la négociation par l'OCRCVM - EMC ; EMC.WT "PR Newswire (Canada)" - 1/5/2017 4:06:00 PM
IIROC Trading Halt - EMC; EMC.WT "PR Newswire (Canada)" - 1/5/2017 4:04:00 PM
doughy   Wednesday, 05/03/17 09:18:14 AM
Re: None
Post # of 216 
$3.80 target

Investment Highlights
• Quality product will likely appeal to patients. We believe Emblem is positioned for faster growth through its GrowWise clinics. Further, we believe Emblem’s high-quality product is likely to provide more consistent medical benefit to these ‘sticky’ customers.
• Novel formulations could command premium pricing. We believe that Emblem’s pharma strategy is a key differentiator. Improved convenience and tighter dosing is likely to reduce the amount of drug required and increase patient compliance; as a result, we believe that Emblem could achieve substantially higher pricing.
• Medical creates a strong foundation for our valuation. We believe Emblem’s medical focus suggests a more stable foundation to our valuation. Because the medical cannabis market already exists, we see lower risk to the company’s projected cash flows. Based on our DCF analysis, we value this business alone at $3.28 per share.
Valuation
We value the medical cannabis market based on a DCF model, using a 16.0% WACC and 3.0% terminal growth: the higher-risk rec opportunity is valued using a probability-weighted NPV. Despite the miss, our target price remains C$3.80 as Emblem’s projected peak capacity and pharmaceutical strategy remains intact. Our target represents a 55.1% projected annualized return and supports our SPECULATIVE BUY rating.
Emblem trades at 9.7x its projected funded capacity, compared to peers at 8.4x. However, we believe Emblem’s medical focus, product mix, and premium pricing support a higher multiple. Although the company is awaiting Health Canada approval to sell cannabis oil, we believe this could be a significant catalyst for investors in the near term.


Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (2) | Next 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist