Hi Guys,
Lets do some real financial analysis, like the pros might do after much consideration. We are starting to get some real information about the profitability of NGW. 40% profit the last quarter is very, very impressive to me. It shows that NGW business plan is working and can be sustained and grown into the future. And near term profit improvement product plans( pre rolls, and extraction in house facility C) are happening now and expanding in the near future.
Copy and pasted from recent NGW news update.
In the months of April, May and June 2020, the Company surpassed US$1Million of revenues in each month and as a result, exceeded US$3Million in revenues for Q2 2020.* The total costs incurred to generate this revenue was approximately US$1.8Million.
So profit of 1.2 million per quarter x 4 quarters = $4.8 million per year
Latest update had outstanding share count at approx. 160,000,000
Using this information we have the following
$4,800,000/160,000,000 = $.03 U.S. per share profit for year.
And yes most growing companies in the real world sell at a PE of 10 or even more. The current pe of the S & P 500 is selling over 22 times.
So looking good here from a second valuation basis.
1. market cap to sales currently only 1.5 times
2. forward PE of 10 times earning would price NGW at $.30 U.S.
3. Gross profit of $1.2 million/$3 million = 40% gross profit
4. More gross profit % improvement coming very soon with the extraction facility start up.
4. More gross profit % and $ improvement coming now with selling pre roll product at a much higher sales point than bulk flower sales.
The above reasons are why I keep adding to my share positions as funds become available.
GLTA
AI
