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MMPRuser

04/18/18 10:35 AM

#73739 RE: Ross92 #73729

my take on it - there is a massive new industry on the horizon and Canopy has the absolute best team in the best position on the planet to take advantage of it.

as far as the share price goes - well if you were looking for a ten year payback period...7.18% ROI - well you would want to see the price of this stock at $60 by 2028.....ten years from now.

and that would give it an estimated future market capitalization of about $12 billion dollars to reach that target

and what would make a corporation worth about $12 billion dollars? I say it should generate earnings of at least a billion.

So, i say if you think this corporation has any chance at all of reaching $1 billion dollars in earnings within the next ten years I would assume that today's price is a fair buy....

now recently they achieve a gross margin on operations of 70%, so if they had revenue of $2 billion, they would have a gross margin of $1.4, subtract $200 million for general expenses and $200 million for taxes - and it is possible...

recently it has been suggested that this corporation could see $1 billion top line revenue very soon with recreational cannabis...

in my opinion this is a fair price and one of the most attractive upsides on the market today. In fact, in my honest opinion, if you have a multi-year investment timeline, this is the best stock to buy on the planet right now.....it's essentially a young Coca-Cola

really it comes down to how fast it can generate 'real' profits - and I think it is essentially guarenteed that this corporation will reach a billion dollars in earnings far sooner than in ten years
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Stephen the kid

04/18/18 11:21 AM

#73744 RE: Ross92 #73729

We will see massive spikes in revenue when countires legalize medical and rec. You have to figure out how much of those gains should the sp reflect now. Should we take 30%,50%, or 60%+ of next year gains?

I think is reasonable to end this year at around 35 which would give us enough room to have a steady climb next year to 45+.