Valens Groworks: 2019 Could Be Great, But Wait For Revenue Growth

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After reporting a growing capacity of 240,000 kg and agreements with large cannabis operators, Valens Groworks increased its valuation quite a bit. The company is currently trading at 3.89x forward sales, which does seem high. Investors should understand that the revenues reported in 2018 were from consulting agreements, not from the sale of cannabis. This type of activity does not report a large gross profit margin and revenue growth is not that elevated.

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