Just A Thought:
Nobody, and I do mean nobody, not ONE company in the Cannabis sector has escaped unscathed from the past year's brutal routing. Many of them deserve the ass-kicking. Many were WAY overvalued. Many others were bid-up to ridiculous levels during the initial frenzy of legalization in Canada. As I've said before, the pendulum always swings too far...….in both directions.
I believe the sector has been way, way oversold. For companies like NGW, a company who is just now taking it's first tentative steps, there have been zero revenues to report and all potential investors have seen is the cash burn and the overall stench emanating from the entire sector. As a result, NGW has sunk lower and lower, almost non-stop, every single day over the past year. But during that time, they have been quietly building a company which produces the finest Cannabis product available, at any price, anywhere in the world.
So, for whatever reason, here we sit just weeks away from the first quarterly financials which presumably will show significant sales for the very first time. And yet we remain very near the all time low.
So one has to ask themselves, Is NGW truly a company who is only worth the current cap of $8 million? Or is there the possibility that this just might be the biggest buying opportunity of any investor's lifetime? I happen to believe that the company is worth vastly more than the paltry $8 million dollar price tag it currently sports. One would think that the real-estate and capital improvements would warrant a market value exceeding that amount. Tack on top of that inventory, name recognition (branding) and barrier to entry for new guys seeking to stick their toe in the water and one would have to assume that we should be trading at many multiples of the current PPS.
I reached my share count goal a couple months ago and told myself that I wouldn't acquire any more for a spell, opting instead to focus on other large-cap investments I like, (PEP, T, COST, AAPL and other ETF's I like). But at these prices I am tempted to start adding to my position again.
Revenues are King in the investment community...….and if those revenues take them to a cash-flow-positive status as they have promised by the end of Q2 / 2020, this could be a rocket-ship.
