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Hi Guys,
Gross quarter sales continue to grow with Q4 2020 at $4,693,973
growing to Q1 2021 sales at $4,844,300 both USD..
Ok, so we did get the news that some of us were waiting for.
NGW continues to grow in sales per month. And in addition they
continue to grow their EBITA with the first quarter 2021 stated
by the company at over 58%. Where by the 4th quarter 2020 was
stated at about 50%.
In addition within the news release NGW stated that they only
obtained full production of Cannabis in the Q4 of 2020.
Therefore for me sales should continue to grow for the next
several quarter as NGW converts their bulk flower sales into
NGW packaged consumer products.
This is the reason for the EBITA growing to 58%.
Also that the Q1 2021 financial statements will be available and
be published by 5/31/2021.
For me share count traded is much higher today and the share
price is moving up nicely. Looking for NGW share price to
break long term support resistance of $.67 this week. And
then continue to move in the higher into its prior trading range.
And the expansion of flower growing facility continues to be
on the previously state schedule with C of O due by the first
quarter of 2022. And that current total grow capacity of flower
for NGW is at 7200 lbs per year. And that the total Cannabis
grow capacity once the new facility is in full production will
be at 20,000 lbs. of Cannabis per year.
So there you have it Guys, NGW continues to deliver on their
stated goals. And yes the company is a microcap trading under
the radar, without much or any public presence. But within a
couple of quarter as NGW continues to put up continue sales and
margin growth investors will begin to really notice how under
valued that NGW remains.
The California Cannabis market is just growing and NGW will
continue to sell out all that they can produce.
Next year at this time NGW will be in production on the way to
growing 20,000 lbs. of Cannabis per years.
And the stock price will take care of itself. See every one
at over $1.50 per share by the end of 2nd quarter 2022. Since
7200 lbs per year currently yield NGW sales of $20,000,000 per
year.
Thereby 20,000 lbs per year sales are at $20,000,000 x 2.77 yields
sales of $55,400,000 per year rate by the end of 2022.
Also at the sales rate of $55,000,000 NGW will be easily able
to continue to build out their Cannabis grow capacity with
the in company profits paying for it in total. And also have
financial resources to further expand as other opportunities
within the Cannabis business become available.
Buying more as funds become available.
GLTA
Hi Guys,
Yes, all of us are waiting patiently for the upcoming 2020 year
end financial report.
And also hopefully a management update as to the current status
of NGW new Cannabis grow facility project. And in addition
hopefully further updates as to business development for
new sales outlets, and or growth partnerships.
Buying more as funds become available.
GKTA
Hi Guys,
Sam thanks for your detail thoughts.
However I still remain at my projection as previously stated.
Easily should/will be at $1.00 per share by release of the first
quarter earnings 2021 report.
Also remember that NGW has gross margins at or near 65%. And they
are profitable!!!
In addition they are cash flow positive, and adding to their cash
balance sheet every month. Financing their expansion in Cannabis
flower growth using in house profits.
Ok, yes that money is already spent in 2021 to build their new
facility. But they have the money to finance with in house
profits. And will/can keep improving margins and monthly sales
dollars as they further convert from bulk sales for package
goods, either under their own name or for COOKIES. And for me
it is ok to invest in companies that are growing and you have
a strong knowledge base that 2022 will be even a larger growth
year. Ok, too early to know the exact timing but by mid 2022
their new facility will be in full production. And yielding
Cannabis flower and other products that should/will easily
move NGW annual sales to over $50,000,000 per year. And easily
producing enough profit allow for the in house self financing
of their next expansion. Either another on sight grow facility
or the purchase of addition capacity and partner with others
in their industry.
Sam, your short sighted position just does not work for me.
and yes adding to my position as funds become available.
I have not sold one share of my somewhat large position.
GLTA
Sorry, but today FLOOF is trading at 4 time normal share count.
And it the share price is moving up over 14%..
Just hold on a bid longer and you will not be sorry. In fact
you will be a very happy $$$ person.
I am a share holder.
Hi Guys,
Ok, CM, I get your opinion and you are ok with me to have one.
But, it is still called investing and with all the risks involved
in placing ivested money on a very young start up company.
But, for me NGW has over the past year shown that they have
grown into themselves. Adding to their board of directors, and
making good business decisions while building upon their
accomplishments.
Also it is encouraging to see that share price NGW continues to
hold its own and slightly grow in share price as the Cannabis
sector is being sold off to a large percentage over that last
couple of weeks.
Time will tell and the upcoming public release of NGW's year
end and first quarterly 2021 financials will place this detail
financial information within the public view. Without a doubt
of what is happening in the company valuations.
To me NGW is very, very undervalued at this current share price.
And I keep adding to my position as funds become available.
GLTA
Hi Guys,
No problem for me if Mr. Jennings decides to live in Las Vegas
Round trip by air is $64.00 and takes about 1 hour to fly into
Fresno, California.
https://www.google.com/travel/flights/booking?tfs=CBwQAhpIagwIAhIIL20vMGN2M3cSCjIwMjEtMDQtMjlyDAgDEggvbS8wcXo1MCIeCgNMQVMSCjIwMjEtMDQtMjkaA0ZBVCoCRzQyAjI1GkhqDAgDEggvbS8wcXo1MBIKMjAyMS0wNS0wMnIMCAISCC9tLzBjdjN3Ih4KA0ZBVBIKMjAyMS0wNS0wMhoDTEFTKgJHNDICMjZwAYIBCwj___________8BQAFIAZgBAQ&tfu=CmhDalJJY2kxd1lVcEtkVGxSVlRCQlFsWjBURUZDUnkwdExTMHRMUzB0TFhsemNXNHhNa0ZCUVVGQlIwSXRMVXd3VEZJM1NVRkJFZ1JITkRJMkdnb0lnRElRQWhvRFZWTkVPQnh3Z0RJPRIGCAEQABgA
Also for me COOKIES has a very large retail presence in Las Vegas.
And as we all know COOKIES and NGW has become business partners
which will very likely to expand in California in the near future
with the startup of the new grow facility. This is public
knowledge as stated by NGW, with some of the new facility
growing COOKIES special Cannabis flower selections.
And also likely that Las Vegas is the next logical step.
Buying more as funds become available.
GLTA
Hi Guys,
Thanks HD for the post and the link. This guys is just placing
into a well organized video the details of what some of us has
been saying about NGW. He presents in a real quantified manner
the details about how well NGW is doing financially. The financial
ratios are real, and NGW is growing in profitability each
quarter. The results continue to speak for themselves.
This is what I have been repeating for months and months. NGW
is very, very undervalued. And within the next couple of days
or weeks when the year end and also the first quarter financial
results are posted investors will see the details of how NGW
cash flow and profit keeps improving each quarterly report.
And without a doubt most reasonable investors will be taking
important position and buying stock in NGW.
The price will again begin to move, upwards and show the
reasonable valuations given the company financial performance.
All those of us who have held their long positions will be
nicely rewarded with near term and long term profits.
Buying more as funds become available.
GLTA
Hi Guys,
HD, from your mouth to "God's" ears!!
To me, also this is the next likely expansion plan for NGW.
Let's hope Mr. Jennings is working on this plan.
Buying more as funds become availab.e
Hi Guys,
Market place is just not giving NGW the respect that they need to
push up the valuations at this point.
OK, latest release moves us nicely near the $20,000,000 per year
annual sales run rate.
And at the current share price of $.71 usd x 183,000,000 shares
outstanding the market cap is now trading at $129,000,000
This valuation has NGW price to sales at $129,000,000/$20,000,000
= 6.45 times.
NGW remains very under valued at it current price and trading
range.
OK, I do get the down side that NGW did state that it new facility
will not be in production by the end of 4th quarter 2021.
And management stated that they now expect to start up by the
first quarter of 2022.
The delay although a disappointment, is not a game changing event
as far as I am concerned.
Those of us who have placed their investment dollars with NGW
will be on the long term profit side. Just apply some business
basic here to NGW and the real story continues to be a positive
one.
For it seem likely that the share price will slowly over the next
several weeks move towards their previous high.
Just keep in mind that several other Cannabis companies are
trading at Price to Sales levels that range from 10x-20x.
And these companies are loosing money!! GO figure??
NGW will get the respect that it has earned with its positive
EBITA. And when the price to sales moves to 10X NGW share price
will easily move over $1.00 per share and easily more without
the new facility adding to their sales numbers.
It is just a matter of time in my opinion. Likely after they
file their formal 10K, for 2020 and 10Q for the first quarter
of 2021. So all investors can make their valuations properly.
Buying more as funds become available.
GLTA
Hi Guys,
I am not concerned at all about the Coalinga township;
finalization of the building authority for NGW flower expansion
plans.
NGW plan is happening. And if the local town officials need more
time to finalize all of NGW building permits and authority so be
it.
For me its all about a growing market place demand for NGW
ultra high quality products.
Sure we would all like for business expansion thing to go
smoothly for NGW. But a few weeks more or less is not going
to matter in the overall business plan for NGW. They are
earning cash every month. They are cash flow positive.
And some time soon in the future the market will realize
this and give NGW the valuations that it deserves in the market
place. NGW is very undervalued in the current market place
against Cannabis flower growers with significant assets that
are loosing money each month. The asset valuation for NGW will
realized sooner than later!!
Buying more as funds become available.
Hi Guys,
It might take 3 years more or less but it does seem very likely
to me that within that time NGW will be branching out of the
California market in to additional states to be an important part
of the growing Cannabis market place.
Most likely with the partnership of an important player in the
retail outlet space for Cannabis products.
Can you smell expanded "COOKIES" partnership cooking??
Makes a lot of business sense to me.
Buying more as funds become available.
GLTA
Hi Guys,
HD totally agree with your 2 recents posts. And thank you for
your alway very to the point and useful posts.
For those of us who have followed the NGW story for many, many
months now we have only the beginning of our rewards.
As NGW continues to state their business plans and execute their
business plans the grow in sales and profit for this company
will continue. The Cannabis market place has been place on a
high growth objective by the growing sales legalization of
the Cannabis market. NGW will have their fair share of this grwoth
and in my opinion much more. Their ulta high quality will earn
the market place respect that the NGW products continue to
collect. NGW has established their brand "NGW" and will continue
to expand and grwo for many, many years.
We are in my opinion just at the very early stages of growth for
NGW. They have a very high quality product in a large growing
market place.
In addition the added business upside waiting for the Federal
and State governments passing laws that allow Cannabis businesses
to continue to grow and make themselves profitable.
In addition NGW has clearly stated their near, and long term
business objectives. Building out their flower grow capacity while
NGW extablishing themselves as a ultra high quality Cannabis
flower producer in California.
So, for me it is still very early and not too late at all to add
to investment positions in NGW,
Buying more as funds become available.
GLTA
Hi Guys,
HD thank you very much for you most informed update with all
the details.
Glad to have you involved to make clear some of these near term
important points and questions.
It seems to me that NGW has take the time to consider their
operational needs with office and security of the building being
a very important part of their business set up.
Buying more as funds become available.
GLTA
Hi Guys,
It just seems to me that a 50,000 sq feet second floor is very
large for a Cannabis trimming and packaging operation.
My questions is why did NGW allow for so much space. And why
did NGW not add additional growing rooms on the second floor.
Seems strange to me.
Anyone have a thought or comment??
Buying more as funds become available.
GLTA
Hi Guys,
Thanks "dinint". Good looking out at the details!!
So it seems that a second floor is likely in the plan. That said
since the stairs and elevator must lead to somewhere.
Buying more as funds become available
GLTA
Hi Guys,
I know that you have stated several times that you business is
construction. Can you pleas use some of this experience and
expert knowledge to help me understand one important point.
HD can you please look at the recent NGW filings documents in
detail about the size and height of the proposed new building.
It shows to be 36 feet tall. Is NGW considering a second story
for their drying/packing operations. And if so this would nicely
improve their space and expansion plan.
Any thoughts on this idea would be appreciated.
Thank you,
Buying more as funds become available.
GLTA
Hi Guys,
Lets just all of us focus on the future. And NGW has proven itself
as a real business over the last year. Several continuing months
of sales and profit growth are most meaningful to me.
Sure we would have all wished that the story would have begun to
happen for NGW 6-9 months earlier. And less share issued to keep
the business afloat when times were tough.
But even with their startup business beginning delays the
management of NGW found a way to keep the business moving
forward. And then fix what was a misdirection then stabilize and
add to their considerable growth of offerings and improving
quality of their product offerings as their capability allowed.
Yes the business future is never certain. But NGW business is in
the sales of a growing demand market. And most importantly NGW
has positioned itself as a very high quality producer of Cannabis
products.
This exclusive area of the market will always allow NGW to ask
and receive higher prices and more gross margin for its products.
The NGW future continues to look very bright from where I sit.
And as the market continues to expand over the next several years
NGW, Mr. Jennings and group of professional workers will continue
to prove why they will be a growing part of this market place.
We in my opinion are all very lucky that we have found this
company with which to place our investments.
The ride might be bumpy but we will see a strong upwards movement
in our investments over the next several years.
Buying more as funds become available.
GLTA
Hi Guys,
For sure NGW is undervalued relative to other Cannabis growing
companies.
Reason being that they are a micro, micro, cap company. No one
from Wall Street has NGW on their radar. In addition NGW has not
spent any of their inhouse marketing money to pay for an analysis
review and publication of the business and price forecast for
NGW. Other companies of their market cap size spend money in
this areas to create buying interest in their stock and move
the stock price higher. But this is not on the business radar
for NGW. And I am ok with this, since slow and steady wins for me.
The valuations are at least 25% undervalued in market cap to
sales analysis, relative to other Cannabis growing companies in
their industry. The details of which I have present several times.
And for me there should be a valuation increase with the next
quarterly release of financial for the year end report. And an
addition an valuation increase showing the first quarters sales
and profit number which those of us who have followed NGW feel
that we should also see a nice increase.
The above and the near term news of Coalinga town and building
department approval should easily move the price to new highs.
For me I am thinking that at least $1.00 USD per share should be
a reasonable first move. And then upwards from there as business
partnerships and other sales milestones become a reality.
And yes, I do agree that the $2.00-$2.50 USD share price will
be seen by the first quarter of 2022.
Buying more as funds become available.
GLTA
Hi Guys,
HD my thinking exactly.
And the extra near term kicker to the up side. Recent news this
week that Congress will be placing the "Safe Banking Act" on the
near term agenda. The "Safe Banking Act" will allow for Cannabis
producing companies to be allowed legal use of the normal business
banking system. That is banking, payments, and financing.
https://www.marijuanamoment.net/congressional-marijuana-banking-bill-will-be-reintroduced-on-thursday/
Buying more as funds become available.
GLTA
Hi Guys,
Another important point of information. And one that has been
public knowledge for several months now. The Biden administration
is user friend for the decriminalization of Cannabis in the U.S.
And the "Safe Banking" law that will allow Cannabis industry
companies to access capital to run their business with the normal
banking business requirement will also soon be in favor.
These above events are on the near term radar to happen. They
might not come as fast as we all would like. But in my opinion
there are very important business reasons for these laws to be
enacted sooner than later. The main reason is TAXES. The
states need money. And with the action that these laws would bring
will put a considerable amount of TAX money into the states.
It will happen, it is just a matter of time.
When this all comes together to market place will place addition
bets into the Cannabis companies. And since "a rising tide lifts
all boats", NGW will ride with the rising tide to a higher
valuation.
So there you have it Guys. My near term thoughts. Until NGW
gives us some business development news to review and talk about.
Buying more as funds become available.
GLTA
Hi Guys,
Now is the time to add to our position in NGW if we have the
investable asset to do so. And others followers or investors
it is ok to hold. Depending on your own assets and risk reward
considerations.
The NGW story continues to grow within the Cannabis industry.
States are opening up their economies. U.S. government stimulus
package gives cash in the hand for many. And continues to support
the unemployment for the unfortunate of us who have had their
jobs effected by Covid-19 downsizing.
The Cannabis story will continue to grow for many years to come.
NGW valuation are no way over stretched with their current stock
share price and trading range. In fact it seems to me that they
are somewhat undervalued.
Mr. Jennings and NGW management has clearly stated their near term
business objective for NGW. These business objective take time
to come into play. And as/when they become reality the share
price of the stock will take care of itself and move to the upside
Guys, for me this is a long term business growth story that has
just started. NGW will continue to be a player. And the important
thing to me is that the Cannabis market place is growing and will
continue to grow for many, many years to come. With some luck
and some good business execution NGW easily become a major player
in the California Cannabis market. NGW will in the next several
years grow outside California. The market need for NGW ultra high
quality Cannabis will continue. And those of us who have applied
good business sense and waiting with our in investments in NGW
growing business will be richly rewarded.
For me I am sitting nicely on my somewhat significant (for me)
position. I am not selling any of my shares, and I am adding to
increase my share count position as funds become available.
Buying more as funds become available.
GLTA
HI Guys,
Nice find PP!!! This is right in line with some of my near term
thinking and price projection forecast for NGW.
And to me these forecasts are reasonable. Given that easily within
5 years NGW will totally have their Coalinga build out complete,
planting and fully producing Cannabis flower and by products in
all of their planned facility for at least 2 years.
And it is very likely within that time or soon after NGW will be
expanding into new locations outside the California market.
In fact it is most likely that the 5 year target for price is
considerably very low. And the price per share could likely be
double in my thinking. I am thinking over $10 USD, for 5 years
out side forecast.
But it is very hard to forecast out for a 5 year future within
the Cannabis industry with so much due to change within the next
1-2 years, and beyond.
However NGW has established itself as a high quality Cannabis
flower grower. And it will establish itself for the long term
within this exiting growing market place. High quality will always
find its growth and market demand, no matter how the market
is growing.
We are all lucky to have found this company. And those of us who
have place their investments with this space will be nicely
rewarded.
Buying more as funds become available.
GLTA
Hi Guys,
Thanks HD for the summary reminder for the very important NGW
Cannabis flower expansion project.
There is just no rushing this project. And the schedule as stated
by management will allow NGW to begin growing Cannabis flower
by December 2021.
Also we just have to wait until mid April for the next issuance of
the year end reporting financials.
And hopefully within this an update by management Mr. Jennings
and group of their current business outlook.
So there you have it guys. As I has said in my previous post
we just need to sit tight and watch the paint dry on the
great business story for NGW.
And yes, buying more as funds become available.
GLTA
Hi Guys,
Yes, we did get some NGW details about their current business
conditions today.
Although not as breakthrough exciting that we all would have
wished for the news was very, very good.
All systems are go for the construction of the next Cannabis
grow facility. And Mr. Jennings confirmed that EBITA and profit
continue to be coming in as expected. And is positive!!
So there you have it guys, most of this we already either,
thought would be the case or wished for slightly better.
For me, this is a wait see time for NGW. The stock market
simply just does not have interest into micro cap, pinksheet OTC
foreign companies.
And until some really significant business development is put
together by NGW the stock price in my somewhat informed opinion
will continue to trade sideways here. Within it trading range.
Yes, paint has to dry. And yes watching paint dry is not fun.
But those with time to hold their investments will be nicely
rewarded within the next several months.
This in my opinion is just how growing business continue to play
out. They grow in stages and steps. And the price of their
company values follows along.
Buying more as funds become available.
GLTA
Hi Guys,
HD, my thinking exactly about the upcoming release of sales
numbers for Feb. 2021. And yes the share price will very soon
be trading as you noted north of $1.00 USD. In fact I show near
term upper resistance at or about $1.20 USD. These are my numbers
and I am sticking with them!!!
We should see something important next week. And hopefully a
management update as/when the new facility construction
begins.
And I continue to hold all of my shares. And will continue to
as management continues to state their business goals and
meet their stated business goals.
That is the way successful companies continue to grow and
continue to make money. And a lot of money!!!
Buying more as funds become available.
GLTA
Hi Guys,
Agreed the next several month should be very, very exciting
with the potential grow near term for NGW.
Buying more as funds become available.
GLTA
Hi Guys,
HD for me you will be very happy with your trade. Done nicely
as far as I am concerned.
Next week very likely to see updated information by Mr. Jennings
about NGW sales for Feb. 2021. In my somewhat informed opinion
(no inside information is available to me) based upon my 40 years
of business experience the marriage of NGW and COOKIES companies
will begin to show it exciting value.
And thereby NGW will publish extra ordinary growth in sales and
profits.
To me NGW should easily be on it way to establish an annual sales
run rate of over $24,000,000 per year.
That should/will put most investor in a position to see great
share value growth in their investments.
For me I am almost fully invested in NGW. And I stand here
controlling my self and keep control and stay diversified within
my total investment assets.
But I will continue to state as I have, buying more as funds
become available.
GLTA
Hi Guys,
Looks like New Jersey has passed a meaningful decriminalization
of Cannabis law.
New York to follow later this year as per the Mario Como.
https://patch.com/new-jersey/morristown/s/hfxk2/nj-low-level-marijuana-arrests-to-stop-charges-to-be-dismissed?utm_source=alert-breakingnews&utm_medium=email&utm_campaign=alert
Hopefully the north east of the U.S. will become a large or larger
market than California.
Wishing for the future news that NGW will partner with an East
Coast Cannabis grower and place their cultivation magic to begin
to own the East coast market.
Buying more as funds become available.
GLTA
Hi Guys,
Just reviewed the trading for NGW and support and resistance.
Support is $.67 and resistance is $.85 USD.
My thinking is that NGW will test this resistance within the next
week of trading.
And then upon the release of Feb. 2021 NGW sales figures rally to
rally to a new high.
I really expect that Feb. 2021 will see the marriage
between NGW and COOKIES strongly show up in a large sales
and profit increase for NGW. Remember COOKIES is a strong retail
outlet in California with almost 20 retail stores.
And NGW can now sell all of the Rolls, vapes, gummies that
they can make. For me I am forecasting trading above the old high
of $.95 USD.
Likely establishing a new trading range of support
at $.95 and resistance at $1.15 USD.
Buying more as funds become available.
GLTA
Hi Guys,
Good to see the rebound in stock price for NGW.
And yes price action today did trade through the near term price
resistance of $.67 USD.
In addition there is continuing sell off in the Cannabis sector
and most of these much larger cap companies are trading lower.
NGW future remains bright. And as we wait for the near term
business news to develop and issued to the public, the stock
price of NGW will take care of itself.
In addition the volume of shares traded today supports this move
upwards in the stock price.
The U.S stock market is open just one hour and NGW has traded
over 600,000 shares.
On to a multimillion share trading day.
Buying more as funds become available.
GLTA
Hi Guys,
Great minds think alike. Yes third flower growing facility will
happen likely as stated.
And possibly sooner than later if a retail partner comes on
board as a financial support for the NGW quality flower that
they alone know how to grow.
In addition there will be/are many business failures that
have existing indoor and Cannabis grow licenses in other near by
states like Utah for example.
Las Vegas comes to mind.
And NGW would be a natural to partner up with the correct
financial backing and use their flower growing process to add
value to an existing indoor facility.
If/as this happens things could get very, very interesting.
Buying more as funds become available.
GLTA
Hi Guys,
HD always appreciate your thoughts on NGW. The reality is that
planning and execution is the name of the game for successful
companies of all sizes.
And NGW has started on their path to extra growth. They have shown
that they know how to grow the very best flower in the Cannabis
industry. And do so while making a profit!!
As far as valuations are concerned. My thinking is easily
summarized as follows.
4th quarter of 2021 begin to plant Cannabis flower in the new
facility.
2nd quarter of 2022 begin the harvest and sell additional
Cannabis flower, rolls, vapes, gummies from new facility.
3rd quarter full capacity planted yielding addition flower, etc.
3rd quarter beginning announce the plan to build their third
Cannabis flower growing facility. To be in production 2nd quarter
2023.
4th quarter announce that the Cannabis flower is totally sold
out from both of their facilities.
4th quarter end of year 2022, have the share price and business
valuation to enter trading on the Nasdaq OTC.
This is my somewhat informed opinion using my 40 years of
business experience. This is my opinion and I have no other
inside information.
And the above is the reason that I continue to hold all of my
positions, and add to this position as funds become available.
GLTA
Hi Guys,
Thanks Buhlz just trying to help and share my years of investing
knowledge.
But further to the NGW story. We all know the business growth
over the last year. From almost nothing to much of something.
NGW is funding their own expansion without share issuance and
taking on debt!!! To me this is huge!.
They are running their business with planning, sense and
execution of stated goals. This is what we all want to see long
about the valuations and the stock price swings. Yes this is to
be expected within the OTC market. But NGW is running its
business like the major profitable company that they are becoming.
Just for reference NGW is very, very under valued at these levels.
Just for example TLRY reported earning last night. They reported
EBITDA of $2.2 Million on quarterly revenue of $41.2 million.
WOW, this just great huh,? NGW reported EBITDA of $1,000,000 on
revenue of $1,600,000 for January 2021. Go figure the under
valuations for NGW.
It even gets better!!
TLRY P/S 17 X
NGW P/S = 170,000,000 x $.65 = $110,500,000/$20,000,000 = 5.5 X
Sure NGW trades on the OTC pinks and does not have Wall Street
investment coverage. And NGW is mostly un know to the investment
community.
But in my somewhat informed opinion this will all change in 2021.
As NGW keeps meeting their business objective, the share price
will take care of itself.
Buying more as funds become available.
GLTA
Hi Guys,
Difficult day for all who are long with our shares of NGW.
Unfortunately we did take out and trade thru the resistance
of $.67 U.S.
New trading range established as $.57-$.67.
I am a buyer today at these levels. To me this is a good near
term entry point.
And this sell off will be history within the next 3 weeks. That
being said that NGW will be issuing their Feb. 2021 sales figures
and by mid March their year end financial report.
Buying more as funds become available.
GLTA
Hi Guys,
Ok so the Cannabis sector is selling off today after a very, very
large run up.
Likely to have been expected. Very, very over bought Cannabis
sector stocks.
As to NGW nothing has changed!! Their business position remains
strong as it has been stated by many of us.
And in fact the support of $.67 held today since as of this
note writing the low for the day was $.66 USD.
So there you have it guys, for me not selling any of my positions.
And this is a buying opportunity of which mostly all have been
passing some of us by.
Yes, buying more as funds become available.
GLTA
Hi Guys,
Prickly, it seems to me that NGW needs to continue to deliver
on their business plan.
Most of us know the important milestone of business objectives
that have been set by the management of NGW.
The are listed for some of us newbees.
1. Build their next Cannabis flower facility
2. Continue to expand the product of NGW branded packaged items
i.e rolls vapes, gummies. etc
3. Continue to expand retail distribution through COOKIES,
and other distributors.
The outside factors include the Congress voting to allow
banking for Cannabis companies, and also the decriminalization
of Cannabis.
In my opinion as each of these above business objectives are met
and or Congress passes improve legal status to Cannabis growing
companies, NGW will be given its upside valuations.
Oh, another point in my analysis I only used conservative annual
sales run rate of $20,000,000 per year.
Most of us do expect that that will move easily into $24,000,000
run rate of sales per year. And yes the share price target would
be much higher. For me a $2.00 USD share target by year end 2021
is a likely goal.
Buying more as funds become available.
GLTA
Hi Guys,
It has been a terrific run for all the Cannabis stock. It seems
to me that some of the companies have gone up a bit too much and
their valuations are currently extended.
However this is the current market place. And with the very
hopeful Congress passing banking and other decriminalization
legislation, it seems that this might just be the new range for
this Cannabis sector.
I did a bit of research and the valuation have moved up nicely.
Company Market Cap/Sales
TLRY 25
CGC 38
ACB 6.9
CURLF 17.9
So to me it seems reasonable to give NGW a bump up in its
forecast using a higher level of price to sales valuations.
So here is my latest thinking on this subject.
Current sales running at $20,000,000 annual pace.
Using 15 X Market cap sales.
$20,000,000 X 15 = $300,000,000/170,0000,000 share outstanding.
My new forecast is $1.76 USD
OK, so call me anything you want. But Guys, the market place is
talking to us. And I am only the messenger.
These are real number Guys. And do not even include the increase
in sales due to the COOKIES contract, and the new Cannabis
flower grow facility.
Buying more as funds become available.
GLTA
Hi Guys,
Yes, we nicely traded past the recent resistance level of $.67 USD
and confirmed with volume and price on a weekly basis.
And now that is the new support is now $.67.
As to the next trading range.
I refer you to my recent post.
NGW current sales is moving into a range of $20,000,000 per year.
The price to sales in the Cannabis space keep on moving up with
the last 2 weeks even higher.
For me it is conservative to use a price to sales of 10 X.
This gives NGW a market cap of $200,000,000.
So market cap/share out = projected price level
$200,000,000/170,000,000 = $1.18
For me this is the next resistance level.
Also more information for this projection will be available in
the first week in March 2021. Since by then NGW would have likely
published the Feb. 2021 sales figures.
Buying more as funds become available.
GLTA
Hi Guys,
For me NGW traded very, very nicely today. The total Cannabis
sector was down a lot. Just check TLRY,CGC,ACB for example.
While NGW continues to make a gain even though slightly.
For me we are going higher from here.
Buying more as funds become available.
GLTA
Hi Guys,
For me Cannabis banking deregulation will happen very, very, soon.
The states need the revenue and Congress gets this idea 100%.
For the companies in the Cannabis sector bank financing will
become more business mainstream. And the risk premium for
business financing that is currently paid by these companies will
be much, much lower and in line with the normal business
financing.
For NGW they will have the access for as much as they need to
finance their current, and hopefully very near term future
expansion of their Cannabis flower grow facilities.
Also packaging, advertising, and staff info structure
requires cash flow as a business grows.
Buying more as funds become available.
GLTA