I've been writing about Aleafia Health (TSX: ALEF), for more than two years now, yet few have taken notice. Except, of course, members of my Green Chip Stocks community, who have since doubled their money on this one.
I've been screaming from the rooftops that this thing is insanely undervalued. And I suspect that over the next few months, now that some of the loose hands have been shaken out, bargain hunters will be piling into Aleafia After all, the company's recently announced expansion of its extraction facility is worth more than all of Aleafia at current prices based on using the comparison of MediPharm Labs
Aleafia's oil extraction and spray/ oil/ capsule manufacturing facility is larger than MediPharm's but has the same market value. MediPharm also has no cultivation, products, retail distribution, patients or clinics, while Aleafia does.
Ryan Troup from The Cannabis Investor opined on this in a recent article which you can check out here.
One thing to not lose sight of is the fact that with Aleafia's recent deal to acquire Emblem Corp., the company now has the largest network of cannabis clinics in Canada, boasting 40 locations across the country serving about 60,000 patients.
This actually catapults Aleafia to about the same size in cannabis production as Cronos Group (NASDAQ: CRON), but with a tenth of the market cap, a much broader product line and many more patients.
Incidentally, Aleafia is actually working with Cronos on a joint medical cannabis study. It's also working with Tilray (NASDAQ: TLRY) on chronic pain study, landed a $10M investment from the Surruya family last year, and recently uplisted to the TSX.
Bottom line: Aleafia is a stealth play in the cannabis space, and those looking for a bargain would be wise to grab a few shares.