It would be more helpful to share with the board why we should take interest in the company rather than posts about the stock price movement.
Today they have expanded their market. I will have to re-evaluate. However at first glance I think my target is conservative.
I hope to be able to soon
I stated that explanation is my intention. However I am very busy at the movement.
Today Village Farms is company run by seasoned management with a proven technology that has proven they can operate in a low margin environment.
It has dramatically increases its TAM and margins by moving into Cannabis production in Canada by converting existing facilities there.
My evaluation, now a year old valued the Texas facilities at zero, and all of the current vegetable production at zero. Further more the analysis was based on the margins for Cannabis production dropping significantly from where they were then.
Recent changes to the U.S. farm bill has made hemp production legal. The recent legislation in Texas made hemp production for the production of CBD oils legal.
So, right now, until I listen to the investor calls and review the applicable laws I cannot put a value on the Texas production houses.
That is my intention.
However, right now I will give you a bunch of opinions. Not that they are worth much.
This is a company with technological know how in hydroponic gardening and has been making a profit in a low margin business for better than a quarter century.
This is a company that is vertically integrated via their partnership with Puresun farms.
This is a company that has seen its margins dramatically improved by its partnership with Puresun farms.
This is a company that has seen it TAM dramatically increases by the legalization of recreational use of THC in Canada.
This is a company that just saw its TAM for CBD oils go up by a factor of 12 with the new farm bill (?) and the nee legislation in Texas.
? The last may be incorrect. They may only be able to market CBD oils in Texas. If so the TAM for CBD oils only doubled.
Finally, because of the structure of the company they can operate in the regulated banking industry and have access to the U.S. Equity markets.
If agents broke int the Texas green house, killed half the staff and arrested the other half then bull dozed the houses, the market value of the company based on last years analysis would still be 40 dollars a share.
I will work up the numbers as soon as I can. I need to as this company now represents 14 percent of one of my portfolios and that is very close to a “trim it a little” position for me.
Qazulight (A Makersmark man myself)