from Yahoo board.... just sharing
PYX is by far the best and cheapest pot play (through their Canadian licensed, Canada’s Island Garden and Goldleaf divisions)
1- PYX is a profitable tobacco company with a low pe, none of the other pot plays have this cash machine business supporting their pot expansion, they are just pot plays hoping to get a partner to fund and expand them, PYX doesn’t need it, they already are it;
2- PYX is severely undervalued just on its tobacco business. The rest of the tobacco industry’s earnings sell for around $26.31 per $1 of income (FYI, Pot stock earnings usually cost between $100 and $1,000). PYX netted $6.30 a share in earnings in 2017. Applying the multiples of the tobacco industry companies to PYX’s 2017 earnings and we should be trading at $166 a share just for its tobacco business. You are getting its hemp (cbd, a hot sector at the moment), eliquid (currently tobacco but given their Canadian licenses for oil, would expect brand announcements thc eliquid soon) and two pot companies (Canada’s Island Garden (bought for 32 million in cash) and Goldleaf (with Canadian Province Supply Agreements)which have both been granted licenses by Canada) for free.
3- PYX has nearly 9000 employees, global footprint, excellent management and board members- no other pot company can say they have all of this;
4- PYX has blue chip customers (ie Phillip Morris) already in place for their tobacco;
5- US pot expansion is growing at the state level and there are reports that both parties will push to fully legalize in 2019; PYX is a 145 year old American Company with a long history and connections in US and the world, the rest of the big pot stocks are not only very young but dot have any US connections;
6- PYX has considerable institutional ownership by high quality institutional investors;
7- PYX has a super low float (8 million (if you subtract the long term institutional investors, the trading float is about 4 million) with a short interest of about one million (1/4 of the “trading float) so its primed for a short squeeze;
8- PYX has a very low (9 million) outstanding share count and thus a ridiculously low market cap. To match TLRY’s market cap (I point to them as many think they are the leading pot company but they are overvalued and PYX is undervalued) PYX would have to be nearly $1600 a share;
9- PYX pot production capacity of 44k square feet that is expanding to over 1 million square feet of grow space;
10- Unlike the other pot growers, PYX is not issuing shares or convertible debt to fund their pot business, it’s using its tobacco atm to buy into and expand its pot divisions;
11- PYX is a 145 year old worldwide tobacco business and the knowledge and connections PYX has as a global agricultural business is perfectly suited to expand its pot divisions and keep production costs down;
12- PYX is an American company which will give it a leg up when the US fully legalizes marijuana, which appears could happen as early as next year. By having these Canadian divisions now, PYX will have a leg up in its home country
This under the radar pot stock is ridiculously cheap at $38 a share just for its tobacco unit let alone adding in hemp (cbd), e liquids, and marijuana. It has not been bid up like all the other pot stocks yet it is vastly superior in its chances to make it long term. After all the key will be brand success and efficiency. It is nearly impossible to determine which pot stock will be the Marlboro of pot or which one will be the Lucky Strike. However, we can do some analysis on costs and how much my investment dollar buys. As indicated above, PYX has many advantages in this area and given its outstanding shares are just 9 million, my investment dollar buys a lot more of the pot growth potential with a PYX then it does with all the other big pot plays (Aphria 215 million shares; Aurora 922 million; Canopy 202 million; and Tilray 76 million) and their much higher share counts.
