Cansortium Inc. (CNTMF), mcap=$43m, price $0.17 vs $0.18

$CNTMF pitch:
– One of the fastest growing, most profitable, highest margin, and cheapest stocks in the entire cannabis universe.
– Producer and seller of medical cannabis products mostly in Florida (27 out of 31 dispensaries).
– The turnaround story is currently at an inflection point.
– Trades at less than 3x estimate of next year’s EBITDA.

$CNTMF valuation:
– At the low end of the ’22 guide for $90-95m in revenues and $25-28m in EBITDA, Consortium trades at less than 4.0x EBITDA, significantly below peers and the entire cannabis universe.
– $35m EBITDA expected for the next year.
– Valuing Florida operations at 6.5x ’23 EBITDA ($35m) and adding $0.29/share for Texas, Michigan, and Pennsylvania licenses result in a $0.74/share target.

Exp. gain: +335% to $0.74/share.

Full CNTMF write-up (free guest account required):

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