Better to Have Such Crappy Financials
and trade low than have impressive ones and be getting screwed. Heres the thing think about it. With only 90,000 in revenue for the period ending in March and an expense of 4.4 million added what to their 80 million whatever the case may be this is a real low bar to exceed in terms of revenue anyways. The company clearly stated it anticipates 3.5 million for the period of April 2021...so you look at that that is roughly 39 times the March revenue. I havent dug deep enough as to why there is huge losses here but at this point the important factor is the cost cutting of overhead in terms of distribution advertising storing etc. I am not that well versed in the company history beyond recent times I see the share restructuring so a lot of those losses I am factoring has been reflected in the restructuring and increase of shares Stockhouse 11.98 million so with the restructuring the dilution the increase of losses and shares issued to raise monies to dig out of the long term losses. Again I dont know what this company did in years past and whatever the long term deficit is is in some ways immaterial...by this I mean that every company has a long term deficit in pennies majority are never profitable yet despite this their values go up on the strengthening of the balance sheet so if these losses are the end all and be all nothing would trade. Now I am not saying the bottom line doesnt matter yes and no...it doesnt as I said if you look at the whatever 80 90 or whatever million this is down this would be not trading but it does to justify higher values. That said was 60 million justified at near .50 a share on the same amount of outstandings well it got there and fell heavily to under .10 so yes and no based on what? Hype of the psychedelic sector being the next big thing like cbd? The key is increasing revenue and significantly lower burn rate both of which is extremely likely. Now with a near 40 times projected revenue...mark this not profit...and most likely what will be a noticeable cut in burn the share value will theoretically only go up...how much let's see. The bottom line is the bar is so low as to where it is the company should be able to make impressive revenue for when it reports things and should be able to cut expenses dramatically providing the expenses to distribution manufacturing storing and advertising are down which they should be as acquiring as a wholly owned subsidiary as Wow or partial stake from my understanding in Bloom both which dont use much of the things described leaving monies for research and development and acquisition. Because the company sits in a real horrible position but is restructuring it is the best time to buy as the only thing it can honestly really do is improve and go up. 90,000 is peanuts and the mounting expenses should start to get cut down however to get out of the heavy ready the burn will have to be less than 4.4 million at a time with revenue in the millions and the gross profit at 38 and 40 percent in the least which on 3.5 at 40 percent is 1.6 million if we round up to 4 million but if the expense is 4.4 million that is still a deficit of 2.8 million and the importance to heavily cut that down. So is this worth the .50 to $1.00 not by the math for that I would say it needs to hit EBITDA positive and it is a long way off. Any high prices beyond where this will bump to will be largely hype on expectations of the sector on the whole as well as growing revenue and cut expenses. Bottom line the stock is weak but because of that the bar is low and it should keep getting stronger and stronger and should keep moving up but with usual ranges. I am ideally holding out for .50 first sale consideration and I will be very honest here I dont care whether the prices are justified or not because in my eyes the majority of pennies trade how they trade. I am not here to evaluate things on just numbers like I said if it was all that nothing should trade the majority are in a hole most typically no less than 10 million and pennies tend to make next to nothing in revenue that is why the sharw counts tend to get over bloated then consolidated then overbloated. If I cared about all this best to go outside pennies. In any case I hold for my prices and I stand behind my comment as to manipulation...here is why...the response by the poster I questioned was shares are always trading through the day what's the big deal or something to that affect. Well that is a weak response yes shares trade through the day but when people trade down towards the ending part of the day that is a clear sign people are trying to snuff out any upward price I have seen this countless times and in the majority the shares were proven manipulated. With so many strong news releases this has been systematically walked down from what .15 or .17 to under .10? Had the person said what Hockeynut did that would be more acceptable understandable he or she did not. The bottom line company hits 3.5 million or better even if the operating expense stays flat I dont see it going up i actually see it getting cut down to whatever extent the price has no choice but to go up more...(.10 plus anyways) It is .09 to .10/.105 right now (lol) and providing things keep improving it stays up and moves however it does they improve but slip after a bit that too will be reflected. There is a good chance this will move and stay above .10 moving from the next financials on. I will not give prices even if I have them in my head I am not going to put supposed fantastical things out there you already know where my low first strike consideration is and my ideal double that. I will wait for the pricing but I am not promising to hold to them although I will wait as far into this year to get the best price whatever that is...I know what I will keep seeing again be it justigied or not I dont care that is for where things should trade. I am solely interested in making profit so with this post I am most likely out from here and doing my best to be out from everywhere else. I have nothing of desire to evaluate stocks I like the price I sell I dont I hold that's all I will do...no more comments regardless of my thoughts and opinion I am done...that is the goal and the reason for me not replying before even though i debated this one...the price most likely to go up....that said not saying to buy hold or what not just saying the price likely to go up...it cant get any worse at this point unless contracts get cancelled which does happen a lot or of course the estimated revenue falls real short the probability is not likely with all the news we have seen maybe it might surprise and beat guidance let's see. Good luck all.