Greenlane Renewables has retrace from $2.96 in Feb. 2021 to $1.43 today. Is it a buy at this price?

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Asked on July 22, 2021 11:25 am
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Hi there,

As a microcap, Greenlane is going to be highly volatile. It is also caught up in an industry that is dealing with negative sentiment - most stocks in the renewable energy industry are down significantly from their highs.

Micro and small caps have been particularly hard it during this industry downtrend. Is it a buy? That will be dependent on one's own risk tolerance as investing in smaller companies such as Greenlane is not for the defensive investor. What I can say, is that I quite like the company and believe it is well positioned to reward investors. While not yet profitable, it is trading at a reasonable 3 times forward sales and revenue is expected to grow by 30% annually through 2023. I'm confident in the company's ability to meet these estimates since it has been able to keep up with lofty expectations in the past.

I should also note that I own the company, have held through the ups and downs and have no intentions of selling. If one invests in Greenlane, one should be prepared to hold over the long term.

Mat

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Posted by Mathieu Litalien
Answered on July 23, 2021 5:36 am