IM Cannabis Company – IMCC stock – is one of my top picks. I was shifted into this stock after the MYM Nutraceutical acquisition, the Canada cannabis company. The pace of growth has been consistent, but not breakneck. Nonetheless, since MYM Nutraceutical was such a great company, I figured I would give IMCC stock a chance. I wanted to put together the IMCC stock forecast and break down what is happening and why I like this stock as much as I do. Things are looking up; definitely up.
IM Cannabis is medical cannabis company in Israel & Germany. However, both countries are expected to switch upward to adult-use cannabis legal very soon. This will have a profound impact on IMCC stock as IM Cannabis Company gears up for this.
There have been a few recent acquisitions that we will start to see developments for in the next two quarters from recent closings of these acquisitions. This will perpetually drive IMCC stock upward, I believe.
Canada & IM Cannabis Company
Reports continually state that Canadian sales continually increase. This would have been the MYM Nutraceutical portion of the merged entities. The continually increases are contributing continually for IMCC stock. I imagine this arm of the company will see even more additional revenue increases throughout the next few years.
Israel, Germany & IM Cannabis Company
In the forum, I have IMCC stock in the international section. The reason is the company’s presence in both Israel & Germany. And, while Canada is officially an international country from the perspective of the United States, I look to these two countries as North America only.
Israel Developments
Israel is a medical-only cannabis designation at this point. But, Israel looks set to flip to adult-use cannabis legal very shortly. This is a big deal that yet, another country will be flipping toward adult-use legal. The liberation of cannabis usage will mean that IM Cannabis Company is well positioned to capture potential market share.
And, IM Cannabis Company just closed the strategic acquisition of three pharmacy chains with pharmacies throughout Israel [1]IM Cannabis Closes Three Previously Announced Strategic Acquisitions in Israel. This will mean a direct sales route for IM Cannabis Company products throughout Israel.
First, revenues are going to increase higher simply because there is another entity adding revenue to IM Cannabis Company’s top line. But, there is also a share structure adjustment that will occur because of the deal so, it is not a linear relationship.
However, current shareholders will see increased revenue gains on a relative basis given the new distribution network within Israel for IM Cannabis Company. So, there is a positive there.
Also, it should be noted that Israel is a country that heavily researches effects and possibilities with regard to cannabis usage. Again, this is an important distinction as Israel will lead with this research… leaving all other countries behind including the United States.
Germany
Germany is slated to flip to adult-use cannabis legal. And, IM Cannabis Company, as well as several other cannabis companies are slated to benefit from this.
The big deal about Germany is its sheer size. Germany has a population of 84M. By comparison, California has a population of 39M & Canada has a population of 37M. Germany is double the size of California.
Companies getting a foundation in Germany now are going to be well ahead of the competition moving forward. And, that means IM Cannabis Company will be well positioned in the future with its businesses in Germany, outpacing the competition.
Factor in products that are increasingly doing well in Canada, and put those same products on the shelves of dispensaries & pharmacies in Germany & Israel, and IM Cannabis Company – IMCC Stock – will continually do well into the future.
Visit the IM Cannabis IMCC Stock Forum & Discussion
Find out what others have to say about IM Cannabis IMCC in the IM Cannabis IMCC Forum & Discussion
IM Cannabis Financial Data
Here is the latest financial data on IM Cannabis Company. As the year progresses, I will continually update these numbers, charts and my outlook given any material changes.
Im Cannabis Company Gross Profits
What is not to love about continually increasing revenue? That in itself is only a small part of the puzzle. Revenue print for the quarter was solid for IM Cannabis Company. But, gross margins are still on the lower side. However, I do not see this as a long term issue.
As I mentioned earlier, I got into IMCC stock because of the MYM Nutraceutical acquisition. I figured I would hold on to see. The financial releases continually update Canadian progress and revenue growth and, my assumptions were correct that the MYM portion of the company would pay off.
Israel & Germany are next in the payoff, and I think my IMCC stock projections fall short of what is next. But, the balance of this is that I will need to continually increase my projections for IMCC stock. However, after the merge of the pharmacies in Israel, there will be an adjustment in IMCC stock share count. Therefore, I am going to have to continually update the IMCC stock forecast.
In the meantime, the organic increases in revenue growth are positive developments. Canadian sales continue higher and have a high customer return/retention rate. Put those same products on the shelves in Germany & Israel, where populations are much larger, you will get even more gains in revenues.
Im Cannabis Company Operating Profits
For now, IM Cannabis Company is gearing up to become a much larger entity. But, the revenues are not quite there to justify the costs right now. Effectively, there are three separate companies that need to do SG&A for all three countries. You cannot reach economies of scale as easily when you look at things from this perspective.
Remember, operating efficiencies are a mathematical equation; a ratio of cost over revenue. First, you want the lowest number possible. Second, as the denominator grows from organic growth (The bottom number), this drives the resulting ratio downward thereby improving the ratio.
But, this is still very early in the process. As mentioned, the pharmacy acquisition in Israel will give the existing IM Cannabis Company new distribution outlets to so many pharmacies. All of a sudden revenue will increase significantly. This will result in proportionately better operating efficiencies; IM Cannabis Company is set to grow into its cost structure through M&A activity.
IMCC Stock will be well supported from this.
IM Cannabis Company EBITDA & Net Profits
I slowed down the IMCC Stock forecast and considered a few rational ways of looking at the future. First, there will be revenue growth in the very near future for IM Cannabis Company because of the pharmacy acquisition. However, this will also mean there is going to be a different share count. That will need to be considered within the balance.
Canadian sales from MYM legacy products continue to improve. And, with a future sales outlet to include all of the Israeli pharmacies, as well as the German adult-use sales potential, I had to weigh this with regard to the IMCC stock forecast.
Next, considering that IM Cannabis Company will be improving its metrics over the course of the next few quarters, I also weighed in on the EBIT levels for the IMCC stock forecast.
Ultimately, I expect there to be big, longterm gains in revenue for IM Cannabis Company. Economies of scale will push gross margins much higher. This will improve EBIT and I will continually adjust upward the IMCC stock forecast.
IM Cannabis Company Cash On Hand
I am not absolutely in love with the current IM Cannabis Company cash on hand and cash to debt ratio. But, again, things will be changing in the very near future. Juggling the current disposition will be the first task as IM Cannabis Company will need to raise more cash if they continue to take losses.
But, this is a process. And, if you can look toward the future, these little nuances are minor when you look down the road to the bigger picture. IM Cannabis Company is about to get the ability to put is products on the shelves of so many pharmacies. And, IM Cannabis Company is also about get the ability to sell very well-received products (Canadian products) in Germany.
Given that, any jostling of cash on hand, liabilities, or debt of any kind is more of an investment toward the future versus life support with a hope toward a brighter future. IM Cannabis Company is getting ready for a big future. Investing in this future will mean a great deal of upside potential for IMCC Stock.
IM Cannabis Company Total Equity
As I state always, one of the first things I check to see if a management team is working toward building a bigger future is total equity. IM Cannabis Company has plenty of equity and, that is about to increase significantly.
A company’s assets provide the ability to drive revenue, and by extension the opportunity of profits. For now, IM Cannabis is continually increasing its revenue. But, total equity is not continually increasing. This is a mathematical equation driven by the fact that IM Cannabis Company is taking losses.
I am anxious to see how this all plays out with future equity when the deal closes. And, I wonder how this ultimately drives IMCC stock.
IM Cannabis Company IMCC Stock Forecast
IM Cannabis Company IMCC DCF
| Assumptions | ||
|---|---|---|
| Tax Rate | 25% | |
| Discount Rate | 8.000% | |
| Perpetural Growth Rate | 30.0% | |
| EV/EBITDA Mulltiple | 35.0x | |
| Transaction Date | December 31, 2021 | |
| Fiscal Year End | 12/31/21 | |
| Current Price | $1.060 | |
| Shares Outstanding | 57,062,333 | |
| Debt | $66,200,000 | |
| Cash | $8,300,000 |
| Market Value | ||
|---|---|---|
| Market Cap | $60,486,073 | |
| Plus: Debt | $66,200,000 | |
| Less: Cash | $8,300,000 | |
| Enterprise Value | $118,386,073 | |
| Equity Value/Share | $1.0600 |
| Date | December 31, 2021 | Dec 31, 2022 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2026 | Dec 31, 2026 | |
|---|---|---|---|---|---|---|---|---|
| Time Periods | 1 | 2 | 3 | 4 | 5 | |||
| Year Fraction | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||
| EBIT | $13,500,000 | $35,750,000 | $52,500,000 | $89,375,000 | $113,750,000 | |||
| Less: Cash Taxes | $3,375,000 | $8,937,500 | $13,125,000 | $22,343,750 | $28,437,500 | |||
| Plus: D&A | $3,150,000 | $4,550,000 | $6,125,000 | $9,625,000 | $11,375,000 | |||
| Less: Capex | $9,000,000 | $13,000,000 | $17,500,000 | $27,500,000 | $32,500,000 | |||
| Less: Changes in NWC | -$2,250,000 | -$3,250,000 | -$4,375,000 | -$6,875,000 | -$8,125,000 | |||
| Unlevered FCF | 1 | $6,525,000 | $21,612,500 | $32,375,000 | $56,031,250 | $72,312,500 | ||
| (Entry)/Exit | -$118,386,073 | $1,976,036,932 | ||||||
| Transaction CF | - 0 | $6,525,000 | $21,612,500 | $32,375,000 | $56,031,250 | $72,312,500 | $1,976,036,932 | |
| Transaction CF | -$118,386,072 | $6,525,000 | $21,612,500 | $32,375,000 | $56,031,250 | $72,312,500 | $1,976,036,932 |
| Rate of Return | |
|---|---|
| Target Price Upside | 2260% |
| Internal Rate of Return (IRR) | 84% |
| Market Value vs Intrinsic Value | |
| Market Value | $1.06 |
| Upside | $23.95 |
| Intrinsic Value | $25.01 |
As I mentioned, I kept things a bit softer for now with EBIT and margins. But, this all changes soon, and organic growth will improve with the ability for the current company to sell its products at all of the retail pharmacies.
I did not take any of that into consideration with the IMCC stock forecast.
When the deal closes, I will adjust the IMCC stock forecast accordingly. I expect that this deal has officially closed at this point and we will see a progressive ramping up of product offerings in these dispensaries. Then, we will see the product sales throughout IM Cannabis Company financial statements.
As the new information comes in, I will continually update the content here and what I think could happen in the future.
Is IM Cannabis IMCC stock a Good Investment?
IMCC Stock is one of the Best Cannabis Stocks – My Top Picks as they are well positioned to capitalize in an enormous shift from prohibition to worldwide legalization, one country at a time.
IM Cannabis Company is a company that has merged via M&A activity into a big potential. While the pace of growth has been slow since the merge last year of MYM Nutraceuticals, the Canadian products are continually adding revenue. The potential to get these same well-received products on the shelves of Israeli & German pharmacies & dispensaries is a big opportunity for the company. The success in Canada will be received equally well in Israel & Germany.
Building a cannabis company is not an event, it is a process. The process is multiple events adding up to one big store. Watching IM Cannabis Company unfold these little events to where they are now shows that long term value investors are holding on to a very big opportunity. The fact that the rest of the world has not caught on to this opportunity is their loss. Those that see through this, will be glad they did.
IM Cannabis Financial Data
IM Cannabis Company Financial Data
| March 2019 | June 2019 | September 2019 | December 2019 | March 2020 | June 2020 | September 2020 | December 2020 | March 2021 | June 2021 | September 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | $1.5 | $1.8 | $1.8 | $1.9 | $1.0 | $2.8 | $4.4 | $3.9 | $7.0 | $9.0 | $11.4 | |
| Cost of Goods | $0.5 | $0.0 | $1.3 | $2.1 | -$2.3 | $1.3 | $1.9 | $3.5 | $3.0 | $9.4 | $10.2 | |
| Gross Income | $1.0 | $1.8 | $0.5 | -$0.2 | $3.3 | $1.5 | $2.5 | $0.4 | $4.0 | -$0.4 | $1.2 | |
| Gross Profit Margin | 66.7% | 100.0% | 27.8% | -10.5% | 330.0% | 53.6% | 56.8% | 10.3% | 57.1% | -4.4% | 10.5% |
| March 2019 | June 2019 | September 2019 | December 2019 | March 2020 | June 2020 | September 2020 | December 2020 | March 2021 | June 2021 | September 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | $1.5 | $1.8 | $1.8 | $1.9 | $1.0 | $2.8 | $4.4 | $3.9 | $7.0 | $9.0 | $11.4 | |
| Total Operating Expenses | $2.0 | $2.0 | $2.3 | $1.8 | $2.1 | $3.6 | $3.0 | $5.4 | $3.9 | $7.4 | $11.2 | |
| Operating Income | -$1.0 | -$0.2 | -$1.8 | -$2.0 | $1.2 | -$2.1 | -$0.5 | -$5.0 | $0.1 | -$7.8 | -$10.0 | |
| Operating Efficiency | 133.3% | 111.1% | 127.8% | 94.7% | 210.0% | 128.6% | 68.2% | 138.5% | 55.7% | 82.2% | 98.2% |
| March 2019 | June 2019 | September 2019 | December 2019 | March 2020 | June 2020 | September 2020 | December 2020 | March 2021 | June 2021 | September 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Interest Expense | -$3.8 | $0.0 | $0.3 | $5.2 | -$0.2 | $0.1 | $0.9 | $1.6 | -$0.1 | -$0.3 | $0.1 | |
| Other Non-Operating Income | $0.0 | $0.0 | $0.0 | $0.7 | $0.0 | $0.1 | $0.0 | -$12.8 | $5.6 | $0.0 | $6.4 | |
| EBT Excl. Unusual Items | -$4.8 | -$0.2 | -$1.5 | $3.8 | $1.0 | -$1.9 | $0.4 | -$16.2 | $5.6 | -$8.1 | -$3.5 | |
| EBT Inc. Unusual Items | -$4.8 | -$0.2 | -$1.5 | $1.0 | $1.0 | -$7.2 | $0.4 | -$16.2 | $4.2 | -$4.1 | -$4.8 | |
| Tax | $0.1 | $0.3 | -$0.1 | -$0.3 | $0.8 | $0.0 | -$0.2 | -$0.5 | $0.4 | $0.0 | -$0.3 | |
| Earnings From Cont. Ops. | -$4.9 | -$0.5 | -$1.4 | $1.3 | $0.1 | -$7.1 | $0.6 | -$15.7 | $3.8 | -$4.1 | -$4.5 |
| Co | March 2019 | June 2019 | September 2019 | December 2019 | March 2020 | June 2020 | September 2020 | December 2020 | March 2021 | June 2021 | September 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | -$5.0 | -$0.7 | -$1.3 | $1.6 | -$0.3 | -$7.1 | $0.5 | -$15.2 | $3.6 | -$3.7 | -$3.4 | |
| Diluted EPS | -$0.17 | -$0.03 | -$0.04 | $0.01 | -$0.01 | -$0.18 | $0.01 | -$0.38 | -$0.05 | -$0.18 | -$0.14 | |
| Dividend Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |
| EBITDA | -$0.9 | -$0.1 | -$1.7 | -$1.9 | $1.2 | -$1.9 | -$0.4 | -$4.9 | $0.3 | -$7.2 | -$8.9 | |
| EBITDA/Revenue | -60.0% | -5.6% | -94.4% | -100.0% | 120.0% | -67.9% | -9.1% | -125.6% | 4.3% | -80.0% | -78.1% |
| March 2020 | June 2020 | September 2020 | December 2020 | March 2021 | June 2021 | September 2021 | ||
|---|---|---|---|---|---|---|---|---|
| Cash On Hand | $0.0 | $9.7 | $7.3 | $7.0 | $1.0 | $27.5 | $14.3 | |
| Free Cash Flow | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |
| Total Assets | $0.0 | $28.8 | $29.8 | $30.0 | $132.3 | $161.4 | $217.4 | |
| Total Liabilities | $0.0 | $7.5 | $7.1 | $20.0 | $38.3 | $45.5 | $50.8 | |
| Total Equity | $0.0 | $21.3 | $22.7 | $10.0 | $94.0 | $115.9 | $166.6 | |
| Cash/Debt Ratio | 0.0% | 129.3% | 102.8% | 35.0% | 2.6% | 60.4% | 28.1% | |
| Book Value Per Share | $0.0 | $0.50 | $0.53 | $0.22 | $1.83 | $2.01 | $2.45 |
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References
| ↑1 | IM Cannabis Closes Three Previously Announced Strategic Acquisitions in Israel |
|---|
I concur. I’ve purchased them, Intercure and Village Farms in the last few months. The certifications to grow then import product to Europe will lead to big time money.
@corywarnshuisgmail-com
You look at the bigger picture, you play the long game with this stock, it is a complete sleeper that no one is paying attention to. This is the big plus to the fact that cannabis stocks are out of favor. I believe IMCC Stock will move upward and, over many years achieve big things. Others will be racing to catch up to this… and dreaming they hit the buy button at these levels.
Interesting news yesterday that I think most people ignored. I think short sellers might be getting nervous. I think they are getting squeezed a little today for short selling on good news yesterday.
I am beginning to think some short sellers, even on nasdaq cannabis stocks, don’t even bother reading news releases anymore on certain stocks. I think they might rue it.
Xinteza Unveils Disruptive Non-Cannabaceae Source for Cannabinoid Biosynthesis in Breakthrough Research Led by Prof. Asaph Aharoni at the Weizmann Institute of Science (yahoo.com)
@cannabisinvesting69yahoo-com Imcc up 16% today. They have been one of the poorer performing cannabis stocks so this is very welcome news. Don’t know if the price move is short covering or a positive reaction to the news or a bit of both.
@pauljlaeserhotmail-com If you want to reply to D.H. in regards to how you feel IMCC is performing, you need to reply to him. Please.
GODSPEED,
#1
the stock keeps declining, or is it being shorted? i dont know how to find that. I know today there were down stocks but this one continues to suffer.
https://nakedshortreport.com/company/IMCC
You can find short reports on this website: https://nakedshortreport.com/company/IMCC
IMCC does not appear to be out of the ordinary compared to other short reports. At least not lately.
Thank you.
@gtosali1967
Historical Short Volume Data for IMCC
Date
Close
High
Low
Volume
Short Volume
% of Vol Shorted
Aug 16
NA
NA
NA
297,335
177,290
59.63
Aug 15
NA
NA
NA
1,011,498
553,416
54.71
Aug 12
NA
NA
NA
645,085
361,383
56.02
Aug 11
NA
NA
NA
507,179
294,876
58.14
Aug 10
NA
NA
NA
172,341
70,157
40.71
Aug 09
NA
NA
NA
158,207
40,706
25.73
Aug 08
NA
NA
NA
183,582
72,976
39.75
Below is a limit buy order I placed this morning on IMCC, and you can see someone selling blocks of 100.
I am adding a little to IMCC. I got into IMCC when it was a lot higher. I am currently down 70% on IMCC. I am not really trying to get my cost basis down that much, because I do have a sizeable chunk reduced down to a small chunk, but I dont have much cash to get my cost basis down,, so I am just nibbling a bit at these low levels.
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@gtosali1967 @cannabisinvesting69yahoo-com
Thanks for posting this. IMCC Stock seems to be having problems getting going the past couple of days. But, look at the major cannabis stocks as they push higher such as CGC, ACB, TLRY, et. al. If these continue higher and make a solid break to the upside, IMCC Stock follows. Interestingly, I like IMCC Stock far more than the others. Yet, it is the others that are heading higher.
@dhtaylor me too, it is just getting kicked. i have accumulated a lot of it. darn the luck.