Here’s the deal. Before, I was focusing on “10 Bagger” potential. This week has proven to me it was very “small picture” of me to write about that. The reality is, this could hit $0.40 far sooner than I expected. After all, we should be beyond $0.50/share RIGHT NOW when you run comparison with inferior stocks/companies. Then again, if I shared a Blog saying a $0.045 stock will be in Dollar land soon — you’d have thought I was high. (Some of you skeptics still might.)
But, before you dismiss my ‘predictions’ as hype and think I’m a despicable pumper — hear me out.
First, let’s head right back to the previous comparisons and start with CBIS (Source: OTCmarkets.com):
- 1.96 BILLION Outstanding Shares
- Market Value as of Oct 20th, 2016 at $0.067/share: $120,989,276
- Pink Sheets, not OTC QB (Read why that matters here)
- Similar Market: Cannabinoids used for medical treatments
- Recent News: In the process of NEGOTIATING some development property. (Not in the process of developing, negotiating. That’s weak in comparison to OWCP’s news today.)
- Still has Convertible Notes for financing
If OWCP, a company with many more positives, were valued at an equal dollar amount as CBIS — OWCP’s share price would be $1.48. Again, that’s just if OWCP had an equal value of a lesser company.
Next, let’s point out how TEVA Pharmaceuticals wanted to acquire OWCP back in July 2015. (TEVA was also trying to buy Mylan, Inc. (Nasdaq: MYL) for $82/share as well.) In other words, OWCP may very well be a candidate of acquisition once again now that they’ve made a lot of progress since July 2015.
Goldman Sachs slapped a value of $349/share for GWPH — which is currently trading at $124.84 and a Market Cap of $3.25 BILLION. Now, keep in mind, GWPH has $43.2M in total Revenue, but an $86.69M loss.
Fine. OWCP doesn’t have much for revenue yet because they’ve been in Research & Development mode. Products are launching soon. Let’s put a hypothetical Buyout Market Value of OWCP at $500 Million. That’s a share price of $6.13. Move that up to $1 Billion, which would still be less than 10% the Goldman Sachs value of GWPH (roughly $9 Billion) — OWCP would be $12.275/share. Give or take. You can do the math on any other Market Value comparisons.
Don’t get me wrong. I feel a little insane suggestion a stock that closed at $0.1866 (on 10/20/16) would be acquired for $12.27/share. But, if you look at the companies I’m trying to have you compare OWCP to… You can see it’s FAR from “impossible”.
If several more US states pass the legal use of medical marijuana — that’s only going to add fuel to the fire. So, remember that when you vote on November 8th.