The marijuana stock market of the past year has been extremely volatile throughout the industry. While most of the year faired quite well with massive gains, the post-September drop lead to many investors backing out. As the industry begins to reinvent itself with new options for investors, it seems as though the companies with the most value are leading the charge in the right direction.
The biggest change in the industry that we saw this year was the introduction of recreationally legal pot in Canada. As Canada became the first G7 nation to do so, it quickly shifts the entirety of the market, leading to a domino effect of various pieces of legislation going into place. Most of these new laws came about throughout the North American sector, but internationally, cannabis is being welcomed with open arms in many places.
One of the best metrics to judging value is the price-to-earnings ratio. This helps to take into account many factors of the business, but it is simply a great way to judge a more purely technical side of the market.
The Green Organic Dutchman is one of the most prominent growers of cannabis in the market. Based out of Canada, they have been working to create the highest quality organic cannabis on a mass scale. This has been quite hard for the company, but they have managed to produce an extremely high-quality product for a fraction of what their competitors are pricing theirs at.
The company currently has assets upwards of $350 million which compared to their net debt, can help to illustrate how much value TGOD has. The Green Organic Dutchman did have a rough few months post-September of last year, but this was a sentiment shared by much of the market. All in all, TGOD seems like a solid play for the future of the industry given the amount of product they are able to produce and the price at which they can produce it.
The Supreme Cannabis Company (NASDAQOTH:SPRWF) is currently showing a forward P/E of 13.1. Of course, they are nowhere near being one of the largest companies in the cannabis space, but they should not be ignored for their size whatsoever. The company has stated that they have as many as 10 producers working to put out around 220,000 pounds of cannabis when operating at peak capacity.
This is quite a high number and considering their 342,000 square foot facility that is in the works, it could become even higher. The Supreme Cannabis Company has also stated that they have a series of supply deals which could help to explain their 13 times forward earnings amount. The company has also been working to continue building out its business through the use of acquisitions as so many others have done. This seems to be quite a solid strategy and has made Supreme Cannabis one of the more interesting choices for the future of the industry.
All in all, the value is only one aspect of a marijuana stock that investors should watch. Of course, it is important, but there is a large amount of research that should be done before investing in any company. Look out for all of the technical factors as well as future happenings to tell where the market could potentially go in the coming years.
Pursuant to an agreement between an affiliate of MAPH Enterprises, LLC (owners of MarijuanaStocks.com), Midam Ventures LLC and The Green Organic Dutchman, Midam is being paid $20,000 per month for a period beginning July 30, 2018, and ending July 30, 2019. We may buy or sell additional shares of (TGODF/TGOD) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about The Green Organic Dutchman. The principles of MAPH participated in the IPO for The Green Organic Dutchman Holdings, Ltd. (TGOD) & own a collective 193,797 free trading shares & 9,725 warrants. The principals of MAPH intend to sell their positions in (TGOD) for profit. MAPH nor any of its principals have been compensated for any material related to (TGOD). As of November 13, 2018 a member of MAPH Enterprises LLC holds freely trading 231,300 shares and 150,000 warrants of The Green Organic Dutchman (TGODF) purchased in the open market. These may be sold at any point. This disclaimer will be updated at such time.