Aurora Cannabis Inc (ACB)

[@WolfofWeedST]

By 2020 production will/should be 500,000 kilograms and as we know valuations have been based on future production/sales. So the Ebitda jumps through the roof when production per gram is roughly $1 per gram & sales per gram even if we low ball it to $6 per gram X 500,000,000 in rev just on flower. Also need to factor in appreciation of assets investments, new products in form of edibles, oils, bio; premium in emerging markets, possibility for joint ventures.

Then I guess you have to play the forward multiple game, but as it stands based on these numbers and accelerators for potential acquisitions/partnerships/legislative change in US & abroad that’s your fair value.

The share count as it relates to dilution is a non factor because last two years has been diluted for acquisition rather than capital. There is a difference between good and bad dilution. One creates value while the other creates cash flow. All in all this is why I am long Aurora on an extended timeline, but proactive with core and tradable position to limit risk down stream.

My forecast is $12-15b by 2020.