- Clever Leaves stock has fallen in value by 68% over the past 12 months, but last week, after Q421 and FY21 were announced, shares gained >200%.
- That doesn't alter the fact the co. has been a disappointment for shareholders - I set a price target of $16 in a note last year, which now looks fanciful.
- Nevertheless, Clever Leaves is growing and exporting cannabis from its Colombia location and Portugal will soon come on-line. The cost of production per gram is much lower than most rivals.
- Management has said capex will fall in 2022, but Clever Leaves is not cash rich and will almost certainly dilute investors again this year.
- There's a massive market for cannabis waiting to emerge, and Clever Leaves could be a winner one day. I wouldn't invest at current price but would look very closely if the valuation falls back below $50m.
For further details see:
Clever Leaves: New Management Needs To Nail Cannabis Distribution, Not Just Production