Q: Good day gentlemen,
This company seems to hold 400M in cash. I believe that is roughly 2$ per share. Can you confirm? Also, the contract with Quebec is for 20k kilos in year 1, with increases every year for total c. 200k kilos over 5 years. I looked at the latest financials I could find on their site. It seams their selling price for past periods was 10$ per gram. I know that this is not possible with the Quebec contract. As a back of the envelope calculation, would it not be conservative to think they could NET 2$ or 3$ per gram on this contract.
Would that not make this stock extremely cheap? Also I notice most analysis is done on EV / Ebitda, can you explain the difference between this and P/E. why do they use this and not future P/E.
Thanks
This company seems to hold 400M in cash. I believe that is roughly 2$ per share. Can you confirm? Also, the contract with Quebec is for 20k kilos in year 1, with increases every year for total c. 200k kilos over 5 years. I looked at the latest financials I could find on their site. It seams their selling price for past periods was 10$ per gram. I know that this is not possible with the Quebec contract. As a back of the envelope calculation, would it not be conservative to think they could NET 2$ or 3$ per gram on this contract.
Would that not make this stock extremely cheap? Also I notice most analysis is done on EV / Ebitda, can you explain the difference between this and P/E. why do they use this and not future P/E.
Thanks