Hi Guys,
I am glad that you "fellows" read my posts. I am happy to share my rational analysis of NGW.
And I know that we will all do very well with our investments at these and higher costs basis.
As I have stated before NGW is very, very under the radar. And not many people in the investment community have paid or care to pay attention to this mico cap company.
But as the business model continues to develop for NGW. And they continue to meet their business objective, the market will take notice.
And along the journey with NGW we make money. And a lot of it if we invested at these depressed levels.
The investing market place does place market cap to sales valuations. And NGW even with the current share price of just under $.15 U.S. continues to have a very under valued market cap to sales value.
And in fact the point that NGW is currently producing a profit should give NGW a market cap valuation at the higher range.
So here is some numbers as requested BlueGreenPower…….. remember larger companies in the weed sector at trading at a much higher price to sales ratio.
Currently NGW has about 160,000,000 shares outstanding. And at a current price lets use $.15 U.S. for round numbers (we are not at this price now but NGW should be there before the next earning release) the total market cap is 160,000,000 x $.15 = $24,000,000
NGW stated recently that they had sales of over $3,000,000 in the second quarter.
And they have stated that they are shifting sales from bulk to preroll product. The preroll product will bring a higher gross sales and profit to NGW. In addition NGW stated that their extraction facility will start un by the end of the third quarter.
So, sales in my opinion should easily move to $1,250,000-1,500,000 per month.
Lets use $1,500,000 by early 2021. $1,500,000 x 12 months = $18,000,000 per year
At share price of $.15 market cap totaled $24,000,000/$18,000,000
= 1.3 times sales
So, guys we are grossly under valued at these levels. In my opinion we should easily see at market cap of 2.5 sales
This gives NGW at near term target price of $.30 by early next year.
This is the reason I continue to add to my position as funds become available.
GLTA...….questions comments, + or - are always welcome
