Value Case Juxtaposed on Conference Call
For those who missed Helix's presentation, a recording is in the vaults of Masada. This should be juxtaposed on an interesting article I just read. An interesting case on valuation for cannabis stocks was made in an article titled "Things Investors Should Look for in the Cannabis Market." It is from a respectable source.
While HLIX is passing all these 5 situations as more clarity surfaces, as reflected in the stock price too, I find Point #5 Particularly Interesting
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Source Citation and link is Located inside Fiefdom Masada
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I won't go into all the details of point #5, except for this particular excerpt paraphrased, which is absolutely true the more I ponder it. And also a terrible blow to Alan Brockman's case, explaining why he has missed this 1500% runup thus far.
PARAPHRASED QUOTE: "In 3 to 5 years, cannabis will be taken off the controlled schedule list. On that day large publicly traded companies backed by institutional finance will have a clear pathway into cannabis. Most of those companies are not going to go through the pain of establishing their own company from ground up. They are going to target the most established brands and they are going to buy them at valuations significantly overrepresent the current revenues of those companies. They are going to find a way to get to the front of the line because that's where they like to be and they have the cash to do it. The aquisiton market on that day for well-branded will be a huge win for investors that looked beyond revenues."
Looking at this through the lens that Zac showed us in that conference call is enlightening. It shows who the market leader is, and what is about to happen "soon" on the itinerary. The projections, all of which have been met so far, plus the sales of Cannabase backed out on the projector, show to me a potential bidding war which I personally experienced with Diedrich Coffee almost 10 years ago to the day. And unlike Hlix, Diedrich was a stock I average down in and it was not growing its revenues. It was juggling 5 brands, had to shudder its Gloria Jeans franchise unit, and get down to its core mission statement which was roasting coffee. It was only K-cups, experiencing the growth I see here, that sparked that bidding war between Peets Coffee, Green Mountain, and some other big player.
You can ask "Motor Mouth Mary," if I can talk her into coming here, as my witness. She was actually my intelligent adversary. Oh, how I wish I had someone intelligent to do battle with. That bidding war took a penny stock to $40.00 per share.
