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CASE STUDY 2: COMPANIES WITH LOW MARKET CAP TO REVENUE
For some companies in this case study, I included links to sources whereas for others I did not. Incorporating revenues (even focusing on them) has always been cornerstone to our content so it is little wonder to now see others following. Again, that third party subsequent validation provides that level of comfort to readers that we continue to be the industry’s #1 trusted source for information and strategies. Much like how I view it is a validation when others use our content to make their own identical but subsequent stock picks and strategy recommendations, I looked up the consensus opinions of each company after I had completed the write up and I inserted them below the name of each company. I used “investing.com” but any respected and trusted similar source could be used. Nothing like subsequent third party validation. A chart with each company’s share price, share count and market cap appears in this month’s From The Retail Investor’s Perspective article. A review of the companies specifically referenced in my article this month follows:
CANADA HOUSE WELLNESS GROUP INC (CSE:CHV)
Investing.com August 4 sentiment: STRONG BUY
- Annualized estimated revenue of $9M based on news releases relating to patient growth. CHV has a current market capitalization of $18M.
- Health Canada Reviewer was assigned in June for their wholly owned late stage ACMPR applicant ABBIX Medix. Per our exclusive Q&A found elsewhere in this issue, there is a good chance this license may have been awarded before you read this – that is how “imminent” the granting of the license is expected.
- Owns and operates the Marijuana for Trauma (MFT) Medical Clinic Network.
- Owns Knalysis Technologies (developers of their health outcomes analytics platform) – this software platform enables CHV to deliver evidence-based cannabinoid therapy to their patients through their clinics. Recent coverage of this app suggests it may revolutionize the way patients choose strains.
- Impressive and growing revenues. Aug 23 N.R
- Canada House Wellness Grp. Announces Application for Management Cease Trade Order Aug 25th (SOURCE).
From the above, one can appreciate the vertical integration with Abba Medix supplying strains of cannabis to their patients that their software platform has identified as most efficacious for treating patients’ conditions. CHV’s revenues to date originate primarily from MFT. My conservative annualized projection of $9M does not factor in any revenues from ABBIX. I subsequently realized that I should check with their own forecasts and this chart appears on their website – appears my own $9M estimated earnings solely from MFT is reasonable.