Blum Holdings Inc (BLMH)

[La Puma]

Well, this is refreshing. Thanks for a thoughtful post based on facts and data!

I agree with your post, and will add:

Assuming a 10x rev. multiple, your math, the OS increase, and the $40M rev. projection you mentioned, that puts us at a $0.53 target. Buy at $0.35, sell at $0.53 yes please...

HOWEVER!

This is a massive and emerging industry with tremendous upside potential. I think a 15x or 20x rev. multiple is more likely. Recreational MJ is a projected $300B US/EU market at full saturation. Think about that for a moment...

Lets go with 15x. That gives TRTC a price target of $0.80.

HOWEVER!

That is at $40M revenue, which is where we are TODAY on a forward 12 month look factoring in zero growth. Zero. "Repeat what you did in Q2 x 4Q= $40M....

That would assume:

They do NOTHING from a revenue accretive standpoint with the capital raised with the share increase....very low probability.

Recreational CA and NV translate into zero additional revenue.....not possible unless the measures fail.

They experience zero growth in IVXX or EG. Growth is already happening in both....

I have previously stated 2018 revenue of $120-$125M is a good threshold to aim for, considering they will have more $$ at their disposal to fund growth. That results in a price target of $2.40 at a 15x multiple.

I think they could blow right by that number.

Bottom line - a lot of upside here.

Puma