RE:RE:RE:Have to wait until after Thanksgiving I'm not posting for you and the other pumpers RP1983 - whether you are paid to do so, or just a penny flipper *hoping* for results rather than basing decisions on *research*, you and those others are lost to me.
I post to inform: I do my research, and invest based on theses that I enjoy sharing. I am long many stocks as well, and do the same for those. I believe that, for most stocks, the wchange of ideas (both short and long) are healthy...but here, any advice on the con side is seen as a personal attack. Waah.
By the way, almost everything decent (CLX, AMZN, AAPL, BMO, BCI.to, IMO, ...) is up HUGE in the past few months....and this stock has done nothing.
Opportunity cost.
My biggest issue is a really fundamental one: RLV has NEVER done anything successfully, going back years. This is not me being "mean" or "jerky", it's just stating facts.
Think about it: a little history of this company and its stories:
1. We are an e-commerce company: Remember how they first blamed the Bioganix guys for dumping shares and keeping the price low? Then, they blamed Amazon's algorithms for their inability to show growth.
Shiny things: Blockchain, Walmart distribution agreement, new products (krill oil, Omega 3, push-pull, LeefyLyfe, ...) - can anyone name results?
Net result: Low share price, no successful launches, tons of cash burned.
2. We are getting into Cannabis!
Shiny things and (no) results:
- We hired consultants to get us a license (never happened)
- We have a manufacturing location in Ville St-Laurent - see the pictures? (Never happened)
- We have acreage in Columbia to grow (never happened)
- We bought a company with a license, founded by our old COO who, by the way, was fined by regulators for market manipulation. (Weedsense fell through).
- To raise more cash, we created two subsidiaries and will spin off Bioganix (never happened)
- We bought Cannakids (went nowhere)
3. We are getting in disinfectants and neutraceuticals to fight COVID!
- We launched sanitizer and pre-sold $250k in six days!!! (Have yet to see actual sales and margin)
- We launched a viral killer using cherries and bark (let's see the numbers!)
- We won a HUGE distribution contract of $20 million...and only paid 10% in cash, plus 5 million warrants at 5 cents, AND had to air ship it into Canada...and have yet to say anything more!
(Let's see the true revenue and margin on a distribution bid...I estimate it to be breakeven at best, once the 10% cash payment to the partner, and the air shipment and logistics eat through any margin left).
...
See, this is called "research". Not bashing, not being mean - just sharing why I would NEVER go long on this.
Besides these facts on the business case, there is the INVESTMENT case: the downside risk is real (running out of cash, which they're getting closer every quarter), and the upside is very limited.
Why?
Because Aurelio, in order to keep himself paid in colaulting fees, has diluted YOUR shares into oblivion by having granted 100 MILLION shares and warrants at 3.5-5 cents.
What does this mean?
It would take 400x the daily average volume traded to work through this stock ceiling.
Translation: The downside is 3.5 cents, and losing everything you have invested. The upside is anything between your cost of acquiring shares and 5-7 cents.
The risk:reward ratio just isn't rationally there.
Hence why a few people here call me names: because they did little to no research, thought it could go higher, and are now stuck with a dog stock.