22nd Century Group Inc (XXII)

[JamesK101]

CANV and 99% of other weed related equities have skyrocketed on hype in the last two months. Most people investing in them right now are already bag holders.

Valuations during the hype are meaningless, as once bubble bursts everything returns to normal.

In the current state XXII is valued fairly. If somehow XXII goes to $1.5B valuation before the summer without MASSIVE contract or earnings increase, then we are grossly overvalued. Keep the reality in check, we need to sell our cigarettes, build the distribution network, work with FDA on regulation, and maintain the loyal consumer base to get the S/P to move up and stay up. To command the $1.5B valuation we need to sell roughly $350MM worth of products and service; consider that in 2013 we made roughly total of $7MM gross.

For comparison, Lorillard has MC of $19B, last year they sold for $7B.