RE:RE:RE:RE:RE:RE:RE:RE:RE:December numbers coming soonwateroperator wrote: Looking down the barrel of a $1.9 million comprehensive loss in 2016, cannabis product ecommerce outfit Namaste Technologies (N.C) had their cease trade order lifted Wednesday, following a short halt when their financials were filed late.
- The numbers weren’t exactly sterling to the casual observer:
- Revenue down from $4.5 million to $3.4 million
- Gross profit down from $2 million to $1.1 million
- Gross margin down from 44% to 32%
- Operating costs up 132% from $1.4 million to $3.2 million
- Comprehensive loss of $1.9 million, compared to a 355k profit the previous year
Added to this, missing the filing deadline for financials was a black eye.
So why hasn’t the stock been crushed upon its return to trading?
This:
On a proforma basis, including the acquisition of assets relating to URT1 Limited during Q1 of fiscal 2017, management estimates the combined assets of Namaste, VaporSeller and URT1 generated revenue of $12,423,486.
Yep, the company not only went public, which incurred about a million in costs, but also bought two major ecommerce assets in VaporSeller and UTR1, which if they’d been accruing revenue for Namaste throughout the year, would have brought in a whopping $12.4 million in revs.
That would have completely transformed the other numbers, obviously.
Namaste has traded around the mid $0.20’s range for most of its public life, registering a $28 million market cap. The company is run by a pair of SEO-traffic builder experts who have made great money over the last several years selling all manner of items online.
With their two acquisitions last year, they maintain the world’s largest network of vapes and cannabis users products.
Three companies cost more to run than one company there's going to be more employees more hidden costs plus the fact they shut down the Las Vegas warehouse and moved all the inventory to Miami.
This company is nowhere near it's matured state.
The three main websites sell items different than each other. One caters to MJ vaping, one has all the e-juice vapes and one has the glass bongs etcetera.
Once they have all the SKU's on each website we will see measurable increases in sales.
As legalization passes in more states and counties the whole vaporizer thing is going to catch fire.
The people bashing this over a decline in PROFIT due to Namaste changing and growing deserve to miss this opportunity.
Unfortunately I believe there is a good reason to spend the time to write a fancy little negative post right now.
Some investors want your shares and they want as many of them as possible before the next catalyst moves this ticker up.
-Quarterly financials
-Celebrity endorsement
-Partnerships
-Ebay
It's a growing company in a vastly growing space with little competition.
No brainer. Hold.