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I have mentioned Love Hemp previously as a guide to how this share should be judged. As Obstando (one of the few who talk sense here) states, you see the efforts they have put in and how they are performing as a result.
The only thing which will boost the SP (other than hype) will be the release of solid sales and profit figures and that is a long way off.
There is no justifiable reason why the CBX SP should increase by 300-400% just because they launch some products for the first time. It will be more likely that the SP will drop if they are late in launching the products.
There isn't a large group of investors out there just desperate to throw cash at CBX on news that they have actually launched some products. Launching products is what they are here to do. It's not some unexpected bonus.
I hope the SP does rise, but as I have said before, it will be a long hard slog and will only happen if the paying public buy the products and repeat buy them. All the razzamatazz in the world won't make a blind bit of difference if the paying public don't take to the products. Again, some people on here seem to think there is a massive queue of people desperately waiting to splash endless sums on CBX products. They might be in for a shock. It's tough out there and this is definitely a risky share.
@R1bo - I don't think that 20p is unachievable upon substantial news but do you have anything to back that claim up?
My opinion is that it could reach that figure but that is purely because of the hype that surrounded the IPO and the fact that it will receive plenty of press coverage.
I also believe that the market will stabilise after that excitement with the SP returning to the current trading range (7-10p) as it will take a good 18+ months to get to a position to underpin a substantially higher mcap. That trading range still values the company at £35-50M which for a company at that stage would be more than reasonable.
It was good to see someone finally use Love Hemp (LIFE) for a comparison recently.
LIFE this morning announced a trading update summarising sales growth - selling in over 2000 UK stores including 198 Boots stores and 838 Holland & Barrett stores, distributors including Ocado, Alliance Healthcare and CLF with Amazon to come online in Q1 2022. Online sales represent 59% of their revenue.
This has taken a number of years to achieve yet their 2021 revenue was only £4.31M and their market cap sits around £6M. The announcement was only a trading update but it is generally accepted they are trading at a loss. They are also in the process of rolling out to US and Asia.
Those expecting a SP of 20-25p (company valuation of £100-£125M) here within two months may be over-ambitious.
ZOE (the other CBD company many like to compare to) are due a trading update within the next week so if they split their cosmetics part of their business from their tobacco cessation we may also get an indication of what their business is worth for comparison.
Whilst I expect to see the SP move upwards from here as news gets closer I struggle to see how the company valuation will justify some of the figures being banded around.
It would be nice when people throw out 20-25p within 2 months to provide some substantiation of how they are arriving at that valuation. Basing it on an over-hyped IPO is not really a viable way to value a company.
We can all say £1 next week which will get plenty of likes but the cold hard reality is that there is a lot of work to be done here and the company need to deliver and deliver soon in order for the current mcap to be underpinned.