Kush Bottles: 10x Sales, 10x Too Expensive – KUSH BOTTLES INC … – Seeking Alpha

We’ve been investing for many years, but Kush Bottles’ (OTC:OTCQB:KSHB) current valuation reflects one of the most overhyped stocks in the fledgling cannabis industry. Currently, investors are buying a packaging and supplies company that is growing its core business by ~16% and is trading at 10x sales. We’ll explain how the sales growth of the core business has been slowing, how gross margins have shrunk, and how current KSHB shareholders will be left with a stock worth around $1.25 after the hype surrounding the legal cannabis market subsides.

Cannabis Industry

The cannabis industry has been turning a lot of investors’ heads with its explosive growth and sprawling changing public opinion. According to The Arcview Group’s “State of Legal Marijuana Markets Report,” from 2014 to 2016, the industry grew at a compounded annual rate of 40%, making it one of the fastest growing sectors in the economy. Over 60% of Americans now support legalization of cannabis for adult use, up from 33% in 2006, and 85% of Americans live in a state that allows some degree of legal marijuana use. National

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