Cannabis Stocks Ranked – Total Equity & Goodwill Per Share Ratio

Below, you will find how I extended even more information from my latest video for value investing on revenue per share and price of revenue per share ratio.  This series charts market capitalization less total equity and market capitalization less goodwill.  Then, I calculate the price of what you get after subtracting either total equity or total goodwill from market capitalization.

You are looking for the lowest metric possible.  However, some of these numbers are negative because total equity may be higher than total market capitalization.  This is inverted.  But, it is not a guarantee.  Ask the simple question: Why is market capitalization below total equity?  In some cases, it is simply because cannabis stocks are under appreciated.  In other cases, this is because the company may be headed for dire times with cash burn and losses.

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One thought on “Cannabis Stocks Ranked – Total Equity & Goodwill Per Share Ratio

  1. 1. Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?2. Mgt’s determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited?3. How effective are the company’s research-and-development efforts in relation to its size?4. Does the company have an above-average sales organization?5. Does the company have a worthwhile profit margin?6. What is the company doing to maintain or improve profit margins?7. Does the company have outstanding labor and personnel relations?8. Does the company have outstanding executive relations?9. Does the company have depth to its management?10. How good are the company’s cost analysis and accounting controls?11. Are there other aspects of the business, somewhat peculiar to the industry involved, which will give the investor important clues as to how outstanding the company may be in relation to its competition?12. Does the company have a short-range or long-range outlook in regard to profits?13. In the foreseeable future will the growth of the company require sufficient equity financing so that the larger number of shares then outstanding will largely cancel the existing stockholders’ benefit from this anticipated growth?14. Does management talk freely to investors about its affairs when things are going well but “clam up” when troubles and disappointments occur?15. Does the company have a management of unquestionable integrity?Courtesy: FLAME LAB.

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