Elixinol Global Limited

All Positives Catalyst Discounted At The Current Price Juncture: Elixinol Global Limited (ASX: EXL) has recently disclosed about the purchase of property for an integrated cultivation and manufacturing facility; together with the renaming of Elixinol Australia Pty Ltd to Nunyara Pharma Pty Ltd (Nunyara). Nunyara has acquired property for a sum of $2.6Mn.

The company has taken key initiatives which are designed to drive sales and market share across Europe.These initiatives include appointments to newly created positions of Managing Director, Elixinol Europe and a Sales and Marketing Director to lead a 12-person team located across Europe, the establishment of European sales offices, the launch of new e-commerce capabilities and a new go-to-market strategy. The company’s revenues amounted to $11.9 million in Q4 FY 2018 which reflects the rise of 116% on prior corresponding period. The company stated that it witnessed a growth of 121% in FY 2018 on a YoY basis.


Revenue Growth-Quarterly (Sources: Company Reports)

What to Expect From EXL: The company stated that 2018 Farm Bill has been signed by the US President. The company also stated that US CBD market size is expected to grow from US$174 million (2016) to US$22 billion by 2022 which might support the company.

In the past six months, the stock has generated a solid return of 148.20% as at 15 February 2019 and is trading at a very high PE multiple of 2,875.0x, showing overvalued at the current juncture. Although the company has been a consistent performer and value generator for the investors, the current price might have discounted all the recent positive developments. Hence, we give a “Sell” rating on the stock at the current market price of $3.450 (up 7.143% on 15 February 2019).
 

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.