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I would agree with the greenhouse approach - atleast do that on one parcel of land to increase product supply. Then if they want to use the increased cash flow to build something more state of the art I'm all about it. This should certainly be $.50 minimum right now. Based on the $1M EBITDA per month, I have them at annual eps of about $.03 per share. A 17 p/e for a growth industry in a hot sector is dirt cheap.
A few ppl asked about what the cost of a new facility would be. In looking at note 5 to the financials they just posted, it shows the cost of their current property, plant and equipment to be about $15M. Included in this amount is $4M for land and $11M for everything else. I would use the $11M as a proxy for the cost of a new facility. Yes, the new facility would be larger than the current one, but I don’t think it would be quite as state of the art. Just my 2 cents.
The market is forward looking... some stories take longer than others to be reflected (as I'm sure NXGWF will), but for long term investors, the share price will eventually reflect the potential. I think it's more likely they get bought out before any new production comes online.
The p&l actually looks really good. The net profit in Q2 was largely driven by the reversal of impairment loss and unrealized gains on investments, whereas the net profit in Q3 was driven by regular operations which is much more sustainable. I would have liked to see the balance sheet.
In theory the share price should always be relatively close (but maybe not exact) after accounting for the fx conversion. Different exchanges can offer different levels of liquidity however the prices shouldn’t be very far apart. If there were a big spread then I suspect that shares would be purchased in either US/Canada and transferred to the other location and sold at a profit.
I agree that all Canadian cannabis companies are very poor investments.... however, Green Thumb (a US MSO) just reported earnings after the bell and absolutely crushed it!! $157M in revenue for the quarter and turned their first profit. This is going to draw a lot more attention to US companies and cause investors to look under the covers for more hidden gems. The sector is going to heat up in the coming weeks. Hold your shares tight.
well, there's no wall at .30 since we're sitting on it right now and the ask is for only 50K shares. We're about to go parabolic in the coming weeks, hang on!!
more ppl can be selling and the price can go up as a result of people placing bids above the prior day's closing price, but not buying at the ask. In essence, at the start of trading there is the bid which represents the highest price someone is willing to buy for and the ask which represents the lowest price someone is willing to sell for. If someone comes in and places a market order to buy or sell then it will take place at the ask (if a buy market order) or the bid (if a sell market order). Limit orders are generally the way you can stipulate your price, but you may have to wait longer or risk the possibility of never getting the price you want.
Good luck
I think a 10% rise on the extraction facility start is too modest... If NXGWF is already profitable based on existing operations, then the profit generated from the extraction facility should go right to the bottom line (less taxes). This could be very significant!
It's just saying what the current price is to either sell (bid) or buy (ask) at the current time.
As I write this, we've cracked .20 with an ask of .2085
Good luck!
$.20 broken
Bid / Ask at .19/.205
Something is brewing!!
Trulieve purchased PurePenn (a producer) today for $46M plus a potential earn-out payment of $60M should they hit certain EBITDA milestones. Total potential buyout of $106M. I mention this b/c PurePenn has 35,000 square feet of existing cultivation with plans to expand to 90,000 square feet.
NXG has a similar footprint in terms of potential cultivation but also has an extraction facility. Not sure what that additional facility would be worth, but it seems like NXG could fetch something north of $100M if they were to sell the company today based on the Trulieve news.
That would be in the whereabouts of $.65+
Good luck all... I'm holding tight
Another interesting tidbit from the later half of their PR - “nearing completion of developing tissue culture cloning technology with bio-tech leader Precigen.”
my 2 cents.... seeing that the first stage of growth is now complete, I would suggest the company reach out to a high profile individual(s) who may salivate at the opportunity to invest in this industry. My thought would be to go to a number of California based sports stars and offer 10-15% of the company for a convertible loan at a price of $.50+ per share. That would give NXGWF all funding they need to get the next couple phases of growth live and also put NXGWF on the map of many folks who would love to follow their favorite superstars into this type of investment.
Thoughts?
For a company trading at only $.16, yes earning $.02 in one quarter is good. For a company trading at $10, then $.02 wouldn’t be good at all unless it were a (1) seasonal business, (2) they are still in growth mode and not yet making $ or (3) there was some other one time events in the quarter. Even break even for NXGWF would have been a great sign bc it would show the bleeding has stopped and the company has turned the corner. It will get interesting when they can show a quarter of performance with the extraction facility fully online.
I find note 6 to the financials very interesting. So NGW owns 2M shares of OMG3 which they marked up in the current quarter based on the price of the latest funding round. NGW aquired these shares for .25 and they’re now worth $1. That’s a nice 4 bagger which hopefully shows the direction this asset is heading. NGW may also have the right to an additional 4.3M shares for providing services which is worth a cool $3.3M USD. Nice!
Good stuff! EPS of $.02 for the quarter driven mostly by below the line stuff but this is great progress. Interesting to see how the share price moves tomorrow. Topline growth was definitely there!!
Thanks
Anyone have a sense of the annual revenue potential for the extraction facility? Thanks in advance
I think we're going to build a base in this range before the next leg up.... with all the positive financial reports from MSO's Trulieve and Green Thumb, I hope investors dig a bit deeper and find this diamond in the rough.
Looking for $.75-$1 by year end
On total volume of 180K shares, I wouldn't really call that heavy selling.
about $170M shares outstanding so I imagine it's doable. I realize insiders control a good portion but I don't think they own enough. This is more of a wet dream wish b/c in order to be successful they would need to push the price into the $1+ range before an offer.
I would love to hear some news about a hostile buyout... some big player just accumulating shares at any price at this level before making an offer. Ya never know!!
wowser... and even after this move I still think we are under the radar. Although volume has been fantastic lately, $100K of trades isn't material.
Wait till we get $1M in trades and then we'll really start cooking.
needless to say, it's never getting filled. I've told a number of folks I know about this the past couple weeks. Not many jumped aboard and I'm sure they're all kicking themselves now.
$.20's are up!!!
Bid / Ask .1952 x .20
Been a great surge the past month... I'm completely ok with holding at this price point and consolidating for the next leg up. I don't think we'll be here very long.
maybe this week, maybe next week. It's imminent as there aren't many sellers at this level with all the good news that could be on the horizon.
Bid / Ask at .17 / .1804
Looks like we are going to make another move higher... if you want to get in I would take a position in phases rather than risk a spike and panic buying at a much higher price.
Yes. They make reference to it in their releases.
Any other investment suggestions with as much upside as NXG?
I've just started a position in Charlotte's Web (CHBWF) b/c I can't pass up the risk reward at this level for the biggest CBD producer.
From your lips to gods ears... if we can get to $1 by year-end I'll be a happy man.
I have... first purchase was at $.49, but I've averaged down to $.18
Any guesses on when this meteoric rise slows down or has a pullback? I've added since .10, but want to get another block.
bid / ask at .147 / .162
It looks like we're going to just skip right past the .15s
generally that would be capex and not opex, but I imagine that could have played some role.
They provided guidance of $85M in revenues for the last 3 Q's of the year. Go back and look at their earnings release. This averages about $28M a Q in comparison to about $21M in Q1. They also said they plan to return to profitability in the back half of the year... guess what, we are in the back half of the year. At $3.80 and the best in breed this is a bargain.
I need .19 - I'm confident we'll get there in the next couple weeks. Can't wait for the market to discover this company.
Anyone here follow any of the MSO's? If so, any pov on LHSIF? They seem to be a good opportunity with 25 locations so far (all in Florida).