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No. of Recommendations: 2
April 1, 2019 ($9.66) Value Line initiates coverage – Their presentations are in USD

Price projection of $18 to $30 between 2022 – 2024.

Company financial strength of ‘B.” This is a relatively low grade, yet consistent with all other cannabis companies they follow.

Uses common stock of 249.3M shares, which equates to a market cap of $2.4B.

Projects F2019 (5/31/19) revenues of $150M, and F2020 of $555M.

Projects F2019 (5/31/19) eps of $0.10, and F2020 of $0.30. The forward P/E for F2020 projections is 32.2X.

Projects 310M shares outstanding at year end 5/31/20.

For F2020 they make the following projections:

Book Value $6.55
Operating Margin 23.0%
Income Tax Rate 15%
Long-Term Debt $60M
ROTC and ROE 4.5%

“According to a United Nations study, the global market is $150 billion annually, and almost 4% of the world’s population is cannabis users.”

They project annual revenues and earnings per share will reach $1B and $0.45 per share by 2022 – 2024. They expect management to remain active on the acquisition front, to fuel that level of growth. They also expect a few more share offerings during that time period.

VL projects quarterly revenues for period ending 2/28/19 of $45.0 USD.

My own quick mention

I have no real projections. I am merely hoping for lack of fraud.

I have some notes on Aprhia at this link: https://rbcpa.com/aphria-rbs-investment-notes/
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