Hi Guys,
Market place is just not giving NGW the respect that they need to
push up the valuations at this point.
OK, latest release moves us nicely near the $20,000,000 per year
annual sales run rate.
And at the current share price of $.71 usd x 183,000,000 shares
outstanding the market cap is now trading at $129,000,000
This valuation has NGW price to sales at $129,000,000/$20,000,000
= 6.45 times.
NGW remains very under valued at it current price and trading
range.
OK, I do get the down side that NGW did state that it new facility
will not be in production by the end of 4th quarter 2021.
And management stated that they now expect to start up by the
first quarter of 2022.
The delay although a disappointment, is not a game changing event
as far as I am concerned.
Those of us who have placed their investment dollars with NGW
will be on the long term profit side. Just apply some business
basic here to NGW and the real story continues to be a positive
one.
For it seem likely that the share price will slowly over the next
several weeks move towards their previous high.
Just keep in mind that several other Cannabis companies are
trading at Price to Sales levels that range from 10x-20x.
And these companies are loosing money!! GO figure??
NGW will get the respect that it has earned with its positive
EBITA. And when the price to sales moves to 10X NGW share price
will easily move over $1.00 per share and easily more without
the new facility adding to their sales numbers.
It is just a matter of time in my opinion. Likely after they
file their formal 10K, for 2020 and 10Q for the first quarter
of 2021. So all investors can make their valuations properly.
Buying more as funds become available.
GLTA
