Great to hear this from someone other than myself. I think the same way regarding ECS vs the others in the space. And really as far as cultivators go its only ECS, LGP and CAN listed on the ASX. There use to be a lot of other companies trying to cultivate but all failed and are now pursuing other avenues (like AC8, THC now EPN)
ECS for me, the business model is far better than the other two cultivators, the outdoor grows which has already been tried and tested, low cost, easy expansion, utilisiing hemp as well which with the CBD markets will play a big role in the future as well. Management keep costs low, despite being able to produce more on an annual basis than the other two listed.
CAN I wouldnt put another cent in for reasons Ive gone over (basically incapable manegment and huge spending, they have spent over $150 mill and are in debt by way of drawn down debt facility, and still have not opened their greenhouse after 3 years) Not a good track record. I would not be surprised to see them folding up the cultivating side of the business and just going down a pharma route in the near future.
LGP is quite a well run business and now has backing from Gina Rineheart who bought in, They are already valued at 120 million, so a lot of upside already priced in, but if I was looking for somwhere relatively stable to put cash in the cannabis industry on ASX I would place it here.
Rest of them are mainly companies trying to go down the pharma route using cannabinoids, some have paid off really well (IHL) and EMD, however others like ZLD, BOT, BOD, MXC.. just seem to be burning cash and just really a lottery if one works out. Out of those I would bet on BOT, just because they have the money in the bank to last some years without a CR and have an experienced team behind them, so actually potential for them to pull it off.
Apart from that there are going to be some interesting cannabis companies listing on the ASX within the next 12 months, but yet to see how they peform and what they are valued at.
For now imo ECS seems like the most upside, well run, cash in hand, multiple revenue producing streams that all have huge potential upside , and only valued at $35 mill, agree seems like 6c would still be undervalued compared to peers. Just as long as you can handle some pain of holding a spec stock in a volatile market, should be paid off well when cannabis sector gets its shine.
ECS Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
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