*Key* As stated in Seeking Alpha
Market Comparisons indicate WCVC is highly undervalued
Sales and share price of 7 fast food companies were analyzed and compared to West Coast Ventures Group. Results indicate that West Coast Ventures Group should be trading at over $.20 rather than the current $.04. The reason for the undervaluation is clearly a problem of lack of investor awareness. Once investors become more familiar with WCVC, the price and trading volume are subject to rapid valuation increases that are more in line with current market valuations.
It should also be noted that the indicated $.20 market comp price, could be revalued substantially higher than conventional restaurant comps because WCVC growth from CBD edibles has the potential to be several orders of magnitude higher than simply being a fast food enterprise. West Coast Ventures Group owns the fast-growing “Illegal Burger” franchise chain and the Mexican Restaurant chain, “El Senor Sol” that are pioneers in the cannabis edibles industry and is positioned to garner a substantial market share in a booming industry. WCVC is also planning on offering popular Illegal Pizza franchises.
Comparable Market Cap to Sales Ratios
Shake Shack (SHAK) $492,000,000 $2,370,000,000
FAT Brands (FAT) $19,000,000 $48,000,000
Jack in the Box (JACK) $872,000,000 $2,230,000,000
Wendy’s (WEN) $1,300,000,000 $4,600,000,000
Rave Restaurant Group $12,000,000 $44,000,000
Dunkin’Brands (DNKN) $1,340,000,000 $6,500,000,000
Chipotle (CMG) $5,000,000,000 $19,600,000,000
TOTAL $9,035,000,000 $35,392,000,000
The average share price ratio to sales for this group is 3.91 to 1.
WCVC reported 2018 sales of $3,054,623. The current ratio of 3.91 times $3,054,623 equals a fair market comp price for WCVC of slightly over $.20 and does not give any weight to the fact that they are a new venture with an unsaturated high-growth market. We will save forecasting price projections for those better suited to the task, but for now it is clear that WCVC shares are an exceptional bargain at anything under $.20 with a strong potential to see prices approaching $.50 in 12 months as franchise sales are expected to be reported. Q1 2019 reported sales increased over 21% from Q1 2018 from $690,759 to $839,615. Potentially explosive franchise sales could ignite shares to record highs.
