I believe that their is practically no price that you can name which isn't possible, however it's earnings or the anticipation of earnings that are required to achieve the price.
Look at Tesla. Their was an article in today's L.A. Times about how many shorts are of the belief that it will go bankrupt. I have a few friends who drive Tesla's and you cannot believe the performance. I've ridden in them with the car in auto drive mode, it's something I look forward to in my next car. The problem is, they currently have a valuation that's greater than General Motor's, yet they've never made a profit, and it's unclear that they can with the new lower cost model at all.
Don't get me wrong, I greatly respect Elon Musk, and if anyone can make this profitable, he can. However, it's the perception of success that has the stock priced so highly, and with many new electric and plug in vehicles coming into the market, I really believe that he must turn the corner on profitability in the next couple years, or the shorts could be proven right.
I raise this as a comparison of where we are. As long as earnings are anticipated in the not too distant future, our price should grow. Tesla has over 150 million share outstanding, slightly more than we do today. People love Tesla's cars. If over time we find that people love our cannabis based products, the same sort of relationships could develop with our investors. I.E. even though more money is being spent on the research and development of new products than is being earned for products on the market, we could still warrant multi billion dollar market caps. The key is getting products on the market that people clearly love.
I've known a few people with psoriasis, a cream that gives them relief, even if not curative, will be loved if no negative side effects are seen. Much the same can probably be said for the benefits of the sublingual tablet if they're truly as effective as the company believes. The key is putting these products in the hands of consumer's and seeing if like the Tesla, people love how they feel when they use our products. Before revenue justifies the price, we could see a multi-billion dollar valuation. I don't know that a $50 billion market cap like Tesla will be justified, but I'd be thrilled with one third of that, and a triple digit share price.
I want to see Musk beat the experts and turn a profit with Tesla, but frankly I like our chances of doing it even better.
Gary
