When you read into the fundamentals of a great investment opportunity you look closely at some obvious/stand-out figures: Revenue, NPAT, YoY and QoQ Growth, Cost Reduction, Access to Capital, Current Debts/Ability to facilitate repayments and Sector Outlook. We can also look into non-numerical values in a company as well: Belief and consumer satisfaction in the product, belief in management and their track record, general investor satisfaction.
ECS resoundingly ticks every one of these boxes in the positive sentiment. Rarely do you find stocks so far undervalued, that despite exceeding market expectations remain in (in my opinion) a Strong Buy category.
Market leaders often see exaggerated valuations and exceptional debt numbers. But, in times where the cost of debt is high, market value and market leaders are those with the ability to be or remain profitable whilst having no or easily serviceable debt with little to no desire to raise capital from the market and dilute holdings.
ECS is positioned to be the ‘listed’ market leader in Cannabis in Australia. This is why I invest in them and will continue to invest in them until I believe that they are valued fairly.
DYOR
ECS Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
