The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Please explain how you get to 4p valuation.
If they get to £10 net profit and are still growing in 2025 then on 15x multiple the share price could be 59p. Although with continual share awards it might be more like 50p.
Cannabis Use Disorder treatment will be massive. Aelis Farma claim that 30% of 15-24yr olds are users and 11-16% of that develop severe problems. So in the US that’s about 1.6m potential patients in that cohort alone. Worldwide Cannabis is being decriminalised and it is getting stronger. Users are not just 15-24 either.
What would Asos be worth if it were run as well as Frasers ?
3.6bn sales. 7% Net Profit margin (OK, that's a stretch year) = 252 NP at 9x = 2.3bn EV - 0.8b Net Debt = 1.5bn Mkt Cap
Current MktCap is 470mio. I'd love to hear thoughts. Clearly 3x from here is the bull case.
Once the litigation is out of the way - I don't see why this wouldn't rerate to a more sensible 15x for a company with a decent growth rate and - importantly - Nasdaq listing.
Annual operation profits of $240 x 15 = $3.6bn / £2.98bn
Factor in growth of 25% per year for 3yrs gets Operating Profit to $468m x 15 = $7bn. PV at 10% is $5.2bn/£4.3bn
Current Mkt Cap £2.1bn / EV £1.8bn
Thoughts most welcome
The final leg of the Multi District Litigation (MDL) claims is set for trial on 30th October. They set aside a total provision of $187m for this and have settled with 41 states already for $102m.
Other news will be the roll-out of Opvee for emergency opiod overdose treatment. Targeting peak net revenue of $150-250m.
You aren’t missing anything. There is an obsession with shorters on this board. Most people seem to think that shorters are malevolent bunch when really they are a necessary cog in a liquid machine. Who else will show bidside liquidity on a weak day ? Who else will be forced to chase the price higher on any good news?
Blackrock now own just over 5% of the company. Blackrock operate a lot of ETFs, so one cannot automatically assume that there is any ulterior motive behind their holding other than to say there is clear interest in owning a good asset.
Https://www.oncology.ox.ac.uk/news/ouh-agrees-long-covid-research-collaboration-with-polarean
https://www.ouh.nhs.uk/news/article.aspx?id=1763&returnurl=/default.aspx&pi=0
You are correct.