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Golden Leaf Holdings LTD (GLDFF)

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Last Post: 9/13/2018 4:53:37 PM - Followers: 70 - Board type: Free - Posts Today: 0


Cannacord Genuity Initiates Coverage on 2/12/2018
We are initiating coverage of Golden Leaf Holdings Ltd. with a SPECULATIVE BUY rating and a target price of C$0.60. Golden Leaf is an Oregon-based, vertically integrated cannabis company, which benefits from operating in all areas of the value chain; including, cultivation, extraction, product manufacturing, and sales to retail customers through its branded dispensaries. This is of particular importance as the cultivation of cannabis alone continues to become commoditized in maturing markets, and we believe brands will eventually emerge as the winners in the industry.

   The company has already launched an established portfolio of award-winning brands in the Oregon market; and, based on our site visits to multiple legalized US regions, we believe its Chalice Farms dispensary brand is one of the more impressive operations we have toured to date, from its design, product selection and attention to quality.
Golden Leaf currently trades at ~8.0x its two-year fwd EV/EBITDA, compared to its US peers at 8.7x.

More importantly, we note that US companies trade at steep discount to the leading Canadian Licensed Producers (at ~24.2x), likely due to marijuana’s continued classification as a Schedule I narcotic in the US. As a result, we believe Golden Leaf is another prime example of the relative valuation gap between US and Canadian cannabis exposure, and the company could see a significant valuation re-rating as US sentiment continues to improve. Investment Highlights & Risks · US recreational exposure drives our forecasts.
With an existing presence in Oregon, a first mover in Nevada’s recently implemented rec market, Canadian exposure, and optionality in Washington State, we forecast that Golden Leaf will realize ~US$27M of revenues in FY2018, increasing by a 42% CAGR to US$110M by FY2022, resulting in EBITDA of US$37M and Free Cash Flow of US$25M at that time. · An expanding geographic footprint. The company has recently added to its geographic diversification by securing a first-mover advantage in Nevada’s recently legalized rec market (with production and distribution licenses already in hand), and through its acquisition of a Canadian Licensed Producer, GLH could have a valuable inroad to launching its brands into the soon-to-be legalized Canadian rec market. ·
Rescission of Cole Memo represents modest overhang. Earlier this year, US Attorney General Jeff Sessions rescinded the Cole Memo, which provided guidance for US cannabis companies to operate without federal interference. Although clearly a headwind, we believe this more of a ‘headline risk’ (lack of federal budget, infringement on state’s rights, removal of significant tax revenues); and, as sentiment in the US continues to improve, this overhang (that could dissipate over the medium term) is also responsible for what we believe to be an attractive valuation entry point. 



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#1104   We need to clean up the IBOX on canadiancannaexpert 09/13/18 04:53:37 PM
#1103   Good read here canadiancannaexpert 09/12/18 04:19:32 PM
#1102   They need a better PR effort in my opinion. canadiancannaexpert 09/12/18 04:18:09 PM
#1101   I saw that and I agree canadiancannaexpert 09/12/18 04:16:31 PM
#1100   Yess indeed starkd748 09/12/18 03:41:44 PM
#1099   Great Virtual Investor on line presentation. What a JimofRidge 09/12/18 03:09:41 PM
#1098   States right issue...i just want hemp legal starkd748 09/12/18 11:56:31 AM
#1097   Mitch McConnell has not help the pot industry JimofRidge 09/12/18 11:29:41 AM
#1096   Next leg up here we go MisterEnzo 09/12/18 10:22:20 AM
#1095   Ok cool thx gltua peace stok stokbrokin 09/12/18 09:20:11 AM
#1094   check out the post prior to mine 1087 Dodger1 09/11/18 11:24:29 PM
#1093   What news? I just took anposition too! stokbrokin 09/11/18 10:13:09 PM
#1092   The Nevada Market news is also huge starkd748 09/11/18 12:55:34 PM
#1091   This is so huge for GLDFF shareholders and DD 09/11/18 11:54:28 AM
#1090   The New Golden Leaf: How the Chalice Farms rprimo 09/09/18 01:33:42 PM
#1089   What is the current Outstanding shares and Float zoneup 09/09/18 10:50:28 AM
#1088   Nice news today...Took a position today. $GLDFF Dodger1 09/06/18 02:51:33 PM
#1087   CBD Growth Momentum Continues G-OiL-D 09/06/18 02:43:35 PM
#1086   This will hit .75 in Oct ...I'm happy starkd748 09/06/18 06:25:22 AM
#1085   Red-hot Nevada cannabis market exceeds half-billion dollars for starkd748 09/06/18 05:48:43 AM
#1084   Tahoe Hydroponics Company Parttimetrader 09/05/18 11:16:02 PM
#1083   Farm bill Conference committee is live on Youtube starkd748 09/05/18 10:36:24 AM
#1082   Great overall read DD 09/03/18 02:56:04 PM
#1081   Would like to get back to that .40 Penny Masters 09/03/18 02:25:32 PM
#1080   Hard to say when regulatory approval comes. This JimofRidge 09/01/18 05:45:18 PM
#1079 knrorrel 09/01/18 10:14:26 AM
#1078   AMAZING knrorrel 09/01/18 10:13:55 AM
#1077   BUY - knrorrel 09/01/18 10:10:38 AM
#1076   How long could it take for the final knrorrel 09/01/18 10:03:56 AM
#1075   Now that summer vacations are coming to an JimofRidge 09/01/18 07:59:25 AM
#1074   this should be a fantastic run by the knrorrel 09/01/18 05:41:40 AM
#1073   that's fantastic and that should give a big knrorrel 09/01/18 05:38:23 AM
#1072   I meant the mj news when canada goes starkd748 09/01/18 05:36:37 AM
#1071   I've been here for a long time on knrorrel 09/01/18 05:34:41 AM
#1070 knrorrel 09/01/18 05:24:41 AM
#1069   many strong $GLDFF news last month knrorrel 09/01/18 05:24:31 AM
#1068 knrorrel 09/01/18 05:22:48 AM
#1067   dream UPTREND CHART knrorrel 09/01/18 05:22:11 AM
#1066   Lol where have you been mars that news starkd748 09/01/18 05:21:38 AM
#1065   17th of October !!! It's good to know knrorrel 09/01/18 05:20:21 AM
#1064   We did not know the 17th of October knrorrel 09/01/18 05:19:23 AM
#1063   Don't worry about the shorts. All we need JimofRidge 08/31/18 09:02:38 AM
#1062   Profit taking and shorts....Holiday weekend and the major starkd748 08/31/18 08:48:59 AM
#1061   a little nice and especially good news today knrorrel 08/31/18 06:17:07 AM
#1060 knrorrel 08/31/18 12:39:25 AM
#1059   dilu ? Short ? Why down ? Last knrorrel 08/31/18 12:37:51 AM
#1058   great future but why then yesterday down knrorrel 08/31/18 12:16:28 AM
#1057   @JimofRidge great post. Those number prove they Grand Rio 08/30/18 03:40:00 PM
#1056   IMO for now is all abt licensing, growing, Grand Rio 08/30/18 11:12:15 AM
#1055   This definitely a hold ali12 08/30/18 10:57:29 AM