Hi Guys,
It has be a while since I have posted to the NGW ihub. Yes, it is true that all of us are a bit concerned about the sell off in NGW stock price. But those of us who have been investing for many, many, years follow the business reasons to be invested in any company.
A few are listed below
1. Growing market sector for the product with growing natural demand.
2. High margins within this sector (NGW is profitable).
3. High cost of entry into the sector, including capital, legal, and technical costs.
4. Unique position in the market, either quality or cost advantage.
NGW has all of the above listed business assets.
Yes, the Cannabis sector is in a very strong down market for the past few months. And many of the very large producers continue to loose many millions of dollars each financial reporting period. This perception will change in 2022. There will be some consolidation and very likely help from the Federal Government with banking and or other legalization.
However NGW continues to grow in sales. They have switched their product mix mid steam to meet market demand. Dropping some lower margin products and adding higher margin products (i.e. NGW Sauce 2.0). They have a plan to open their own retail branded Cannabis stores. All of those business goals will continue to add to NGW growth and profit for the long term.
Also late 2022 will see the start up of NGW new indoor grow facility.
This addition capacity will grow sales by at least 100 percent for 2023.
NGW share price is currently very deeply discounted in comparison to other and much larger public companies in their sector. These companies are all loosing money. And even with their very large losses the market is still valuing these companies at twice the market cap of NGW. Currently NGW price to sales in about 3X.
This very low valuation for NGW will very soon change. Yes, the year end selling is painful but that is the way that Wall Street works.
I am holding all my shares and have not sold any of them. In fact I continue to add to my position as funds become available. This is stated given that I currently have a somewhat large position in NGW shares.
Buying more as funds become available.
GLTA
