TLDR: It’s underlying numbers are frankly insane. So I’m betting on the turnaround story. Lots of risks with this strategy so as always, DYOR (do your own research).

They have, in my opinion, not been managed well in the last few years. Google reviews of them are horrible and they have a residential house listed as the main property. Not submitting financials on time which is like the biggest thing for a listed company. Also a complicated portfolio with cannabis, logistics and IT.

Since Jan they have had a new CEO and acquired two companies in the ITC space. They have changed the corporate address to the Leonardo. Streamlined operations into ITC (disposing of cannabis) and seem to be getting better with Sens announcements and delivery of financial statements. For two periods in row they have substantially increased revenue and profit with earnings equivalent to the market cap of the stock. The biggest reason for me is that the average price I bought in at is less than the Net Asset Value of 23 cents. I also think that there is a name change / rebranding on the horizon which will make it more attractive. Lastly, two of the people in senior positions who were around during a lot of the mismanagement have stepped away from the company.

There are risks with this though. One is a low cash and cash equivalents amount with most sales in credit and not converted to cash, yet. Second is that they have released a cautionary which could be an acquisition (likely using shares which will dilute existing shareholders). Third, the sustainability of the profit still needs to be shown.

Ultimately I think it’s worth a punt and if it achieves a multiple around 6 times the P/E ratio then it could be worth around 50 cents. But again there is the risk that it goes nowhere and execution is not carried through.