Welcome to the Cannabis Investing Newsletter Forum. Feel free to find your favorite cannabis stocks and contribute content as you please; content that continues the discussion of and analysis of cannabis stocks. – D. H. Taylor
Lowell Farms LOWLF Stock to Push Towards $31.50
Who is Lowell Farms LOWLF Stock? Indus Holdings purchased Lowell Herbs in a mostly stock deal. The combined companies are set to launch their new branding under the name Lowell Farms LOWLF stock. LOWLF is very attractive to me for a number of reasons - its upside potential being the main driving force. LOWLF is one of the best marijuana stocks to buy now. They will get there from a multitude of angles. They have a tremendous social presence of some 1M impressions per month. They also have capabilities of some $105M annually; although, I have calculated a number slightly higher.
I have read a few of your reports and do like that you explain some of the terms and detail mostly where your assumptions are made, for the most part. I would like more information to support your estimate or source on their cannabis production capacity of 70K lbs. per year; they are expanding to a new cultivation site as well, and this should deserve some analytical comment, as it will affect the bottom line significantly if executed efficiently.
The biggest issue with your article, I have, is that your stated amount of outstanding shares is outright wrong, and there is an issue with the amount as it is hard for most investors to figure out this fully diluted amount which is required to accurately deduce the correct numbers for any entity. There are approximately 262-268 million subordinate voting shares on a fully diluted basis. This brings your numbers and price down considerably to just under $ 4 per share at the revenue you suggest; which I agree could be more if the production capacity estimate is also correct.
It may be that some of the shares are not considered to be relevant until they are issued but I feel this information needs to a part of any prospective investors knowledge; the minimum share count of issued shares is still higher than your stated amount and stands at 67.5 million outstanding.
Also, I think the standard to use in evaluating by comparison to other Cannabis LP's is to use price/sales ratio or EV/sales and price multiple of EBITDA. I believe this would be another metric you could enlighten your readers on and it is useful to find undervalued LP's.
I would like to see a revised, more detailed look at Lowell Farms if you are to correct this unfortunate error for your readers.
Is Lowell Farms better than The Parent Company stock for exposure to California cannabis ?? Or Glass House ?
This stock is at .88 today 10-19-2021 and has been down to .74 . How can it climb out of this hole ?