The Canadian cannabis stocks we’ve selected have the lowest price-to-sales ratio in the sector
SmallCapPower | May 14, 2019: Today we have dug up three Canadian cannabis stocks that have the lowest price-to-sales ratio [trailing twelve month (TTM)]. Low price-to-sales ratio is indicative of undervaluation. The selected cannabis stocks have a market capitalization in the range of $40 million to $130 million.
*Market caps based on the closing price on May 09, 2019
SOL Global Investment Corp. (CSE:SOL) – $2.60
SOL Global is an international investment company with a focus on cannabis and cannabis-related companies in legal U.S. states, the hemp and CBD marketplaces and the emerging European cannabis and hemp marketplaces. Its strategic investments and partnerships across cultivation, distribution and retail complement the Company’s R&D program with the University of Miami. On April 24, 2019, SOL Global entered into a binding letter of intent with cannabis-focused private equity firm Merida Capital Partners to acquire Merida’s Michigan subsidiary, MCP Wellness, Inc. for an aggregate purchase price of US$150 million.
- Price to Sales (TTM): 0.62x
- Market Cap: $124.7 Million
Isodiol International Inc. (CSE:ISOL) – $1.13
Isodiol International is focused on the nutritional health benefits that are derived from hemp and is a product development, sales, marketing and distribution Company of hemp-based Consumer Packaged Goods (CPG) and solutions. Isodiol has commercialized a 99%+ pure, naturally isolated CBD, including micro-encapsulations, and nano-technology for quality consumable and topical skin care products. On April 11, 2019, the Company commenced its cannabidiol (CBD) vending machine program with an initial launch of Iso-Sport products in 20 Powerhouse Gym’s across the United States. Powerhouse is one of the largest health club licensing organizations in the world, with over 1.2 million gym members.
- Price to Sales (TTM): 1.67x
- Market Cap: $47.0 Million
Golden Leaf Holdings Ltd. (CSE:GLH) – $0.115
Golden Leaf Holdings is a Canadian cannabis company with operations in Oregon, Nevada, and Canada, with cultivation, production and retail operations built around recognized brands. Golden Leaf distributes its products through its branded Chalice Farms retail dispensaries, as well as through third-party dispensaries. On May 6, 2019, Golden Leaf Holdings announced that it will offer its Jackpot premium distillate oil cartridge brand in Oregon. Previously, Jackpot brand was available only for retail purchase in Nevada.
- Price to Sales (TTM): 3.14x
- Market Cap: $67.8 Million
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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