Hi Guys,
Market cap valuation is my go to rationalization for adding to my position in NGW. And I am not concerned about the current price decline and slow down in the quantity of shares daily traded in NGW stock price.
NGW is growing sales with their NGW branded products. High quality, high margins, and great retail sell thru. The retail stores want to make money and they will position their inventory dollars in items that sell thru and improve their store profits. NGW retail store quantity of locations placements could easily double within the next few month for this reason alone.
So we should easily see NGW sales moving up to $2,000,000 per month by the first quarter of 2021.
That you gives NGW a yearly sales $$$ of $24,000,000.
Currently NGW trading at $.27, and there exists approx. 170,000,000 NGW shares outstanding. That give NGW a market cap currently at $.27 x 170,000,000 = $45,000,000.
Therefore price to sales is market cap/annual sales.
$45,000,000/$24,000,000 = 1.875 times.
And for example other companies in the "Weed Sector"
ACB P/S = 3.55
HEXO P/S = 3.75
TLRY P/S = 4.49
And the above companies are losing money big time.
So Guys, just sit back and watch the show. NGW will get it's market respect as NGW continues to grow sales and profit. And very soon Wall Street will begin to notice. And the valuations of NGW stock will easily reflect the market place valuations for the "Weed" sector.
Purchased more since funds have become available.
GLTA
