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Re: GrowGreenMoney post# 29831

Saturday, 04/19/2014 9:11:40 PM

Saturday, April 19, 2014 9:11:40 PM

Post# of 45244
This answer assume that the company's financial releases are truthful, which is what new investors will assume.

While some investors will pull the trigger right away, the majority will do some DD, marginal in certain cases, but not most.

An analysis of the financials will quickly show that the company has a P/S of more than 20. That is more than ten times the industry average. This number is so out-of-line that many potential investors will stop right here, and while looking at the chart will assume that they already missed the boat.

Others will look at the P/S, which will well over 100. Again many times more than the industry average. However, some will notice that many expenses were paid with shares and they were not properly recorded as expenses, which, in fact, indicates that the company is losing money.

Others will notice that annual sales are about 175K per location, and would come to the conclusion that such a low level of sales per location is not consistent with a profitable business.

Further analysis will reveal even more negative information. All of these put together will lead most investors to go elsewhere and only mostly momentum players looking to benefit from a further up move. But whatever rally takes place due to the Forbes related release should not have much legs. A movement into the low .30 in stock price will make the market capitalization more than 100MM. That is unsustainable in this kind of industry where most revenues require a lot of expenditures.

On the other hand, RLTR is yet to make a sustained move. It is in an industry that can generate a lot of revenues that will go to the bottom line. Making additional deals, including one with BCCI for producing and promoting the reality TV show would be very profitable to RLTR. Truly it will also be profitable to BCCI, but it is already way overpriced. So, any deal that raises the price of RLTR .10 is only likely to enhance BCCI by .01-.02, if that much since a correction in which the momentum players decide that it is time to take profits cannot be far away.