Canopy Growth Corp (WEED)

[TMEvans]

Good rough numbers . . .

Even if combined production is only 7 million grams (presently), at $7.50 per gram, and assuming a conservative 20% net margin, one would expect around 25 cents a share in net earnings... a 20x multiple would not be out of line at all considering the prospect to grow consistently from there... that gets you to a $5 per share valuation pretty easily.

I am of the impression that notwithstanding their license is for the current built-out capacity, they would not have difficulty expanding the facility and amending the license so long as they are continuing to meet the license requirements. Not that it is a 'rubber stamp' per se, but surely it is not at all analagous to a new license application. It does not trouble me in the least.

Remembering that the market is a forward looking beast, it is not inconceivable that we will soon see a valuation based on a multiple of projected earnings based on production expansion beyond the current capacity. Of course, I think all are waiting to see how things are going with the current production first! Imagine a valuation based on a doubling of both facilities' production from the current license caps - still well under their respective total capacities!!

I'm as excited as I've been in a while... though anxious at the same time to see what the reality of the last few months has been!