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Right answer, wrong numbers?


Ricky Perkins
(@gr8day4alemonadegmail-com)
Eminent Member
Joined: 10 months ago
Posts: 33
Topic starter  

Hey DH,

I know you are probably bored with nothing to do <sarcastic friendly chuckle> so I just wanted to mention there may be an error in the balance sheet info on Verano for Q3.  I agree 100% with your FINAL ANSWER that the book value per share is $5.39 using VRNOF's unaudited numbers.  I also agree with the awesome asset number they gave: $2,686,956,000.  HA HA it feels so good to write that number out!

The little discrepancy is in the liabilities.  The $519M is the LT liabilities but they also had ST liabilities of $466M for total liabilities of $985M.  Verano gave the shareholder equity then as $1,700.8M (2,686M-985M) which divided by the 317 shares of Verano = $5.365 which is close enough for me considering all the rounding off.  1.7 billion dollars is still a bunch of shareholder equity and a 15% increase since Q2.

I am grateful for the recent changes to the tables.  The balance sheets with net income, eps, shareholder equity, etc. have made it much easier for me to decide where to put my money.  I know that many cannabis companies are growing themselves rather than showing income and paying fat income tax bills.   Maybe for now it is better I think to look many aspects of growth until cannabis companies are taxed like other American companies by replacement or repeal of 280E.

It IS a LOT of work and I thank you very much.  I hope you continue with this project.


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#1
 #1
(@1)
Estimable Member Registered
Joined: 3 months ago
Posts: 163
 

FYI: simplywallst.com has VRNOF over 90% undervalued and have fair value over $100 per share.

That's how Simply wallst values VRNOF.

I own shares of VRNOF.

simply wallst has 3 of D.H.'s top picks at over 90% undervalued.

 


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cjubes
(@coreyjubesgmail-com)
Active Member
Joined: 7 months ago
Posts: 14
 

@cannabis-investing - What were the others?

Cheers!

 


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#1
 #1
(@1)
Estimable Member Registered
Joined: 3 months ago
Posts: 163
 

VEXTF MRMD,

Several others over 50%. not all are valuated for value. Not sure the requirements, I think market cap might be a requirement


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Ricky Perkins
(@gr8day4alemonadegmail-com)
Eminent Member
Joined: 10 months ago
Posts: 33
Topic starter  

@cannabis-investing

I agree Verano is very undervalued. Verano is my biggest holding, and I am very happy with the 18% move up since December 21 with the Santa Claus rally.  It did better than my Trulieve that moved 10% but not as good as my Ascend which moved 20%.

What are the other two top picks you mention that are 90% undervalued?  My guess is Trulieve and Schwazze?


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#1
 #1
(@1)
Estimable Member Registered
Joined: 3 months ago
Posts: 163
 

vext and mrmd. Please go to simplywallst.com. they do have some good info. sometimes I think there numbers dont factor in acquisitions, or just plain, not right.


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D. H. Taylor
(@dhtaylor)
Member Admin
Joined: 2 years ago
Posts: 640
 

@gr8day4alemonadegmail-com My numbers are always perfect; It's the company that has it wrong. hahaha... I'll look into this.  

One thing, to mention as a possibility is that I convert everything from CAD into USD and that may be something.  But, and without looking yet, you seem to be certain; I will look at this at some point (Today is all about Sundial).  

In regards to Simply WallST... I've not seen their numbers. But, this is the trend that I am looking at.  What we do is we put together mathematical models based upon interest rates, risk, earnings, future earnings, and a host of other variables.  This model gives us an average of what companies should be valued at.  Then we compare the companies to each other.  The 90% undervalued is a bit higher than mine, but they may have a 5-year projection.  Nonetheless, both me and Simply WallSt are looking at the same kinds of models.  


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D. H. Taylor
(@dhtaylor)
Member Admin
Joined: 2 years ago
Posts: 640
 

@gr8day4alemonadegmail-com If Verano is your biggest holding then hold on with all you have; it is one of the best out there and one of the most undervalued.  You will be giggling for years over this.  

Feel free to post as much content here on the forum on your rationale behind you acquiring/holding this company; others may benefit greatly since it has such big upside potential.


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D. H. Taylor
(@dhtaylor)
Member Admin
Joined: 2 years ago
Posts: 640
 
Posted by: @gr8day4alemonadegmail-com

Hey DH,

I know you are probably bored with nothing to do <sarcastic friendly chuckle> so I just wanted to mention there may be an error in the balance sheet info on Verano for Q3.  I agree 100% with your FINAL ANSWER that the book value per share is $5.39 using VRNOF's unaudited numbers.  I also agree with the awesome asset number they gave: $2,686,956,000.  HA HA it feels so good to write that number out!

The little discrepancy is in the liabilities.  The $519M is the LT liabilities but they also had ST liabilities of $466M for total liabilities of $985M.  Verano gave the shareholder equity then as $1,700.8M (2,686M-985M) which divided by the 317 shares of Verano = $5.365 which is close enough for me considering all the rounding off.  1.7 billion dollars is still a bunch of shareholder equity and a 15% increase since Q2.

I am grateful for the recent changes to the tables.  The balance sheets with net income, eps, shareholder equity, etc. have made it much easier for me to decide where to put my money.  I know that many cannabis companies are growing themselves rather than showing income and paying fat income tax bills.   Maybe for now it is better I think to look many aspects of growth until cannabis companies are taxed like other American companies by replacement or repeal of 280E.

It IS a LOT of work and I thank you very much.  I hope you continue with this project.

@gr8day4alemonadegmail-com

Boredom has finally overcome me and I decided to do something.... hahaha.  I am doing a price target right now on Verano Holdings. As it turns out, there is a spreadsheet error.  There was supposed to be something automatic that did not occur (Subtracting the liabilities from the assets).  Good catch on this, but ultimately, everything else lines up properly.

I'm just beginning the DCF and should have all of my numbers in about an hour, then do the video this afternoon and get it uploaded later this evening.  


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