Hi Guys,
Major news today. For me NGW, Mike Jennings just sold the company for a
very, very, low price. Sure the Cannabis sector is in a very significant down market, but wow, Mike you could only get $70 million U.S dollars for NGW total business. Just way too low a selling price in my opinion. Last quarters sales were about $4.3 million U.S dollars. And NGW stated that they had increase yield by about 15%, and were launching new higher valued sauce products. So it seems to me that quarterly sales could have moved into the $4.50 million range. Or annual sales of 18 million U.S dollars.
There by $70/$18 = 3.8 times. And yes the next grow facility is 12 month away at least but it must be worth something in the valuation.
Is Plant 13 such a great operator that those of us who own NGW share will see the future growth we all thought was possible for NGW, now just under another brand. For me I just do not know.
The sector is being sold off by Wall Street. And it seems that we will just have to wait and see.
Not buying more as funds become available. Sorry for all of us.
Happy New Year and Christmas to all of those who have been within this for many, many months. I appreciate all of you, and your thoughts.
