Focus on Fundamentals at MJBizDaily & New Comp Table

by | Oct 21, 2020 | Free, Macro, Thematic Research

Here is a link to my October 21, 2020 article in Marijuana Business Daily, Before election, focus on fundamentals, not emotions, in cannabis investing, in which I analyze the stock price and sentiment moves in the third quarter and the reactions in October to the VP debate and Aphria’s earnings.

It also has a copy of my in-the-money diluted pro forma comp table for major Canadian and US operators priced on October 16, 2020, reprinted below.

On October 16, 2020, the US marijuana operators were trading at an average of 3.6X 2021 sales and 12.7X 2021 EBITDA estimates, while the Canadian operators traded an average of 6.1X sales, and for those with EBITDA a (basically meaningless) 29.8X EBITDA multiple.

As noted in more detail here, this comp table dynamically adjusts the share count and debt sheet for only in-the-money warrants, options, and convertible debt, and is pro forma for all announced financings and acquisitions.

This comp table will soon become a regularly updated feature for MJResearchCo members with many more names including CBD and ancillary companies.