$NUGS: Cannabis Strategic Ventures released their Q2 earnings results yesterday. EPS came in at even, (0.0c eps)
The company continues to fire on all cylinders with close to 250,000 square feet of cannabis farm with growing and harvesting going to plan.
With a market cap of close to 4 million, the name is extremely undervalued with the market cap standing at 16x the total company growth square footage.
This metric is the lowest in the cannabis space as NUGSFARM will continue to produce premium cannabis in perpetuity. $NUGS continues to provide industry stalwarts with top shelf flower, maintaining its position as one of the top domestic US growers.
Further, their sale of the downtown LA retail biz and license for 3.8mm last quarter alllws the company to concentrate on core competencies and allows the company the necessary working capital for new growth drivers and initiatives including CBD, beauty and a brand dedicated to staffing in the cannabis space.
We believe that the company and industry has a significant tailwind with respect to the legalization and decriminalization of cannabis in state jurisdictions and Federally with the probable passage of the upcoming Federal law which will allow more states to accept and decriminalise the use and sale of cannabis to help with budget deficits.
We hold at rating of the stock at STRONG BUY and maintain our price target of .20c by 4/20/24, a 15x return from current levels. Further, the risk reward ratio of the name is best across our global equity list given that our target can be reached without many major developments in the space.
The company simply needs to stay in its lane and allow the significant tailwind to ride the incoming wave of deregulation in the industry which we expect to happen after mid-term elections and into early 2023.
STRONG BUY: Target .20, Current Price .012
As of release of this research note, I own a significant position in the company and industry.