GDNP.V

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Hi could you do a report on GDNP.V thanks…

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Asked on February 13, 2021 7:08 am
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This is a highly volatile growth stock. Prone to pretty big swings. We've seen in the past while that growth stocks are taking a hit.

Even though the markets are flat, growth stocks are facing some pretty big pressure downwards as rumors of rates rising (interest rates going up = poor for growth companies, as their cost to borrow and expand go up).

With GDNP being a highly speculative play, if the market sells off, this will be amplified.

The news of it being rated a top 50 venture company really shouldn't have any impact on the share price. In 2020 and 2021, news like this could send a company up, but it would really be unjustified.

I own 11,000 shares of GDNP. I have absolutely zero plans to sell. Here's an excerpt from when we added it to the Millennial Aggressive portfolio.

"However, we'd like to reiterate that Good Natured Products has a high degree of speculation, and should be reserved for only the highest risk investors. As we witnessed recently, the stock took a 33.5% dive off all time highs in a matter of a week. If you're uncomfortable with this degree of speculation, modifications could be made to the portfolio much like we stated above where you opt in to safer, more blue-chip plays."

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Posted by Dan Kent
Answered on March 3, 2021 8:03 am
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Thank You ...excellent ....

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Posted by Mike Nicholson
Answered on February 13, 2021 3:55 pm
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Hey there. GDNP is small enough that a full report isn't possible. Our screener can't produce reliable data on stocks with a market cap of under $250 million. There are some exceptions, but most just don't have the analyst coverage and historical growth to print out something accurate.

However, I have no problem providing an opinion on the company, it is one I have a position in. Of note, so does Mat, and the company is also on our Watch List as well as held in our Millennial Aggressive portfolio.

So, as you can tell by the positions and its exposure on Premium we're fairly bullish on the company.

It operates in an industry that has significant room for growth, especially as the world moves towards greener alternatives.

There is no doubt the company is growing at a rapid clip. The company has a compound annual growth rate on revenue of 153% over the last 6 years. The fast moving consumer goods market is estimated, by the company, to reach over $150 billion in 2021. As the world moves away from plastics and to more green alternatives, companies like GDNP will gain access to this massive market.

Fiscal year 2020 saw the company grow revenue by 62%, and if we look to next years revenue expectations, the company is currently trading at 4.77 times sales.

The company issued shares a few months ago for around $0.47 and quickly turned that capital into an acquisition that essentially doubled their revenue. Fast forward to today, the company just issued another share offering for $1.20. The offering was initially to raise $15 million, but due to increased demand it was bumped to $20 million. This is showing institutional confidence in the company.

And to add to this, it actually ended up cleaning up some debt. But instead of the company paying off debt, it simply exchanged it for common shares.

Which, is a huge vote of confidence from the loan issuer.

Overall, it's a fast growing company in a fast growing industry, one that is highly fragmented and will no doubt lead to further acquisitions by Good Natured. However, it's very important to understand that this is still a small/micro cap company that is in the very early stages of growth and can pose significant risks in terms of volatility and business operations.

This is exactly why the company does not make it to our Bull Lists, and is only inside of our most aggressive portfolio here at Premium. The thesis can change very quickly on a company like this, so it's important to not go overweight on these companies if you can't handle the risk.

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Posted by Dan Kent
Answered on February 13, 2021 11:24 am
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Hey there. GDNP is small enough that a full report isn't possible. Our screener can't produce reliable data on stocks with a market cap of under $250 million. There are some exceptions, but most just don't have the analyst coverage and historical growth to print out something accurate.

However, I have no problem providing an opinion on the company, it is one I have a position in. Of note, so does Mat, and the company is also on our Watch List as well as held in our Millennial Aggressive portfolio.

So, as you can tell by the positions and its exposure on Premium we're fairly bullish on the company.

It operates in an industry that has significant room for growth, especially as the world moves towards greener alternatives.

There is no doubt the company is growing at a rapid clip. The company has a compound annual growth rate on revenue of 153% over the last 6 years. The fast moving consumer goods market is estimated, by the company, to reach over $150 billion in 2021. As the world moves away from plastics and to more green alternatives, companies like GDNP will gain access to this massive market.

Fiscal year 2020 saw the company grow revenue by 62%, and if we look to next years revenue expectations, the company is currently trading at 4.77 times sales.

The company issued shares a few months ago for around $0.47 and quickly turned that capital into an acquisition that essentially doubled their revenue. Fast forward to today, the company just issued another share offering for $1.20. The offering was initially to raise $15 million, but due to increased demand it was bumped to $20 million. This is showing institutional confidence in the company.

And to add to this, it actually ended up cleaning up some debt. But instead of the company paying off debt, it simply exchanged it for common shares.

Which, is a huge vote of confidence from the loan issuer.

Overall, it's a fast growing company in a fast growing industry, one that is highly fragmented and will no doubt lead to further acquisitions by Good Natured. However, it's very important to understand that this is still a small/micro cap company that is in the very early stages of growth and can pose significant risks in terms of volatility and business operations.

This is exactly why the company does not make it to our Bull Lists, and is only inside of our most aggressive portfolio here at Premium. The thesis can change very quickly on a company like this, so it's important to not go overweight on these companies if you can't handle the risk.

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Posted by Dan Kent
Answered on February 13, 2021 11:24 am