CAN 0.00% 3.1¢ cann group limited

I see CAN being taken over at $7.5 by Aurora, page-51

  1. 53 Posts.
    lightbulb Created with Sketch. 46
    SorryNotOZ, I appreciate that you at least share your thought process when you post, but from skimming this thread you’re not really doing analysis, you’re making appeals to ‘common sense’ which are really just hopeful predictions.

    Your original post predicted a run up to $6 in H1 2018, settling at $5. In reality, the runs have barely cracked $4, and settled around $3 with a $2.50 support line (half your mcap prediction).

    Your more recent comments are about what must be happening “behind the scenes”. You are positioning your predictions as if there are no alternative explanations, when in reality the contract between the airport and Cann Group has hundreds of possible mutually beneficial structures, all of which would have a different implication on SP and confidence, and none of which are priced in because the information is not available to the public. We don’t know what consideration APAM are seeking in return for funding the primary build, and it’s pointless to speculate without further information. It’s also worth noting that this is a HoA contract, which is non-binding and represents nothing but an intent to negotiate detailed terms of the enforceable parent contract, which means the terms may change entirely.

    So what does the HoA really mean for Cann Group? It means they have sufficient confidence of their future site to proceed with funding the final design. That’s it. Is it a good positive step? Absolutely, as the finalised design will give a fairly accurate indication of yearly crop yields and future expansion capacity. Is there anywhere near enough information available to be making even semi-accurate predictions of 2019 Mcap or potential takeover valuations? Not in the slightest.

    I don’t know your background, but I get the sense it’s not in market or financial analysis, which is really the background you need here to make the predictions you are trying to make. If I’m wrong and this is your background, I’d love to see the models you’ve used in your predictions so I can compare them to my own.

    All the best
    Last edited by sisyphus.climb: 02/07/18
 
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