http://www.********.au/2017/05/31/the-horror-pot-stocks-collapse-30-in-a-month/
Auscann is reputedly one of the more promising businesses in the sector and its most recent quarterly report revealed revenues of
zero and cash outflows of $1.8 million. It just raised another $12 million by issuing new shares and I estimate has around $16 million in cash. While it might be close to generating its first revenues, it is hard to evaluate if they will be enough to create any sort of return for shareholders.
Yet Auscann has 247 million shares on issue which, at today’s prices, value the company at $97 million. Is it possible for a company with
no sales and $16 million in cash (and very few other assets) to be good value or even fairly priced at $97 million?
I hate Motley Fool, but it's a fair point.
