Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
A lot of "high hopes" in that statement. Be nice if the POTUS would POT US...
GRWC breaking downwards a bit today, hoping for some good news in the near future...
https://insiderfinancial.com/grow-condos-inc-otcmktsgrwc-is-an-oversold-stock-due-for-a-comeback/173889/
Grow Condos Inc (OTCMKTS:GRWC) has been experiencing a bear run for the past 10 months.
The company, whose share price is currently trading at $.0395, begun the year at a high of $1.25 and has been going down since.
This downward trend was further exacerbated in August when their number of shares traded rise, unlike previous months, with the traded volumes hitting highs of up to 12 million on some days during this period.
All this can be seen in the chart below:
GRWC Daily Chart
The latter alludes to the fact that the company’s shares may have been oversold during this period.
Therefore, we are presenting a narrative that given the latter, the company may therefore be due for a come back going forward and that investors would benefit a lot from investing in the stock at its current low price and selling it at its expected future high price.
Over the course of this piece, we will assess the operations of GRWC and establish the value creation activities that have been undertaken by their management during the period since our last analysis.
Before then, however, let’s have a brief look at the company.
GRWC: A Brief
GrowCondos Inc is a real estate purchaser, developer & manager of specific use industrial properties providing “condo” style turn-key grow facilities to support the cannabis industry.
They currently own, lease, sell and manage properties for cannabis industry players. They finance the purchase and/or development of properties by offering to investors private placement sponsorships, debt instruments, or limited partnerships.
The company prides itself in being passionate about the growth of the dynamic cannabis industry and is working to ensure that they are part of this growth process.
Taking Part in Growth
The growth story of Grow Condos is banked heavily on the growth of the cannabis industry as a whole. This stands to benefit them quite a lot given the growth that has been experienced in the cannabis sector as a whole.
According to a report on global small cap firms, Grow Condos sales are being driven by burgeoning legal cannabis market, which stood at $7 billion in 2016 and is expected to grow at a CAGR of 25% till 2020 to reach $22 billion.
Source:
With this said, the only limit to the growth of the firm would be inability to take advantage of the opportunities in the industry.
This far, however, much has been done.
The company’s new product dubbed “Smoke on the Water” has come to revolutionize the cannabis sector by providing nature lovers the ability to enjoy cannabis in a secure and serene environment. The product will give such people the ability to smoke marijuana in ‘park-like’ environment, creating a new niche for tourists who may not be allowed to smoke marijuana in national parks.
As such, park-like establishments serve as their best grounds for this product.
Management believes that these establishments can be purchased for 4 to 7 times EBITDA, then converted into culturally themed Cannabis Friendly destinations, creating a greater industry presence with a growing multiple of franchise themed locations.
This brilliant idea has been hailed by their CEO, Wayne Zallen, who said:
“The concept that the ‘Smoke on the Water’ brings to the table is proving to be a unique and successful business model entirely suitable for an advantageous ‘roll-up’ acquisition opportunity The RV and Campground sector of the Real-Estate industry is an almost wholly exclusive niche in the industry that we are very gratified to have discovered.”
Source:
With such foresight and ‘niche-creation’ going on in the company, there is a lot of value creation expected from them. Our bullish outlook on GRWC cannot be further underscored.
Financials
The company has put in a lot of effort in growing and tidying their books.
Their annual revenues have been growing over time with the period ended June 2016 having $118,000 as compared to the $54,000 in the previous year. Moreover, their revenues are quite stable over the past quarters with the company making $26,000 in the quarter ended March 2017. Despite this being a drop by $3,000 from the previous quarter, the management remains optimistic of an increase in the coming quarters as the industry continues to grow.
In line with the above, the company recorded a net loss of $119,000 in 1Q2017 down from $310,000 in 4Q2016 and $506,000 in 3Q2016. This was courtesy of an interest income of $137,000 that was earned during the quarter, a significant jump as compared to the $20,000 earned in 4Q2017 and $19,000 in 3Q2016.
In addition to the above, they have made significant strides to ensure they boost the shareholder equity which went up from a negative position $901,000 to $466,000. Despite both positions still being negative, the halving of the position only goes to speak to the company’s position on strengthening their book values going forward.
This in addition to working at recording a profitwill go a long way in ensuring that the company’s book values are solidified as they work towards growth.
Finally, GRWC is cash flow positive.
In the first quarter of 2017, they made about $104,000 in operating cash flows. This was no mean feat for the especially when these cash flows were compared to the negative position of $349,000 recorded in the previous period.
All the above go to show that GRWC is at a pivotal position in its operating life and that its management realize this and are putting systems in place to manage this process. A lot has been done in GRWC, all which is preparing them for growth in their operations and share price performance.
Conclusion
Shares of GRWC have been oversold in the past, however, the company has made significant strides in a bid to get back up. We expect that the stock will pay off in the near future.
We will be updating our subscribers as soon as we know more. For the latest updates on GRWC, sign up below!
Image courtesy of ExtensivelyReviewed via Flickr
Disclosure: We have no position in GRWC and have not been compensated for this article.
Tobias pretty big name here
1 million shares sounds really good right about now... Glad I've held on. Lock in your belts, passengers
I guess you should look again and be impressed
Honestly. The CEO spending less than $4000 in the company means jack. Spend buy 1 million shares and I’ll be impressed.
Getting ready to breakout it looks like..imo
$GRWC slowly but Surely~
http://growcondos.com/
http://www.otcmarkets.com/stock/GRWC/profile
Nice form 4 today $GRWC
You're gonna have to reach out to the TA~ http://www.otcmarkets.com/stock/GRWC/profile
Nice form 4 today $GRWC
Any idea of how many shares are restricted?
TodAy is gonna be another big day CEO just bought 1000000 shares he believes in his company
It means CEO Bought Shares
What makes this form good news? I don't understand the purpose of it... I'm a novice at interpreting these things
What's up? Did somebody say something today?
I'm very grateful I did not sell I believe in it for some reason... Between the campgrounds, condos and legalization, I think all it requires is patienceeee
Pressure building.. I'm watching.. can't wait to see powerhour....
Looks like a little manipulation up in here. IMO
I'm holding on. It's bound to go up eventually, assuming their plan of extending condo pods and campgrounds all across America is a success... I bought in on the fundamentals. Time will tell. After all, Disney Land started on just a few acres and scoffed at by most. Walt had a vision and it turned out okay for him, lol
The reglations holding strongly. $GRWC lking this one could eb a nice ventureds.
That was more than a hint. That was shouting from the roof tops with fireworks lighting up the night sky. The Form 4s coincide directly with the chart dropping into new low territory.
http://www.otcmarkets.com/stock/GRWC/filings
Did the CEO exasperate the situation? Probably. But apparently, he wasn't too concerned even though he still holds a majority of shares. And Ms Cleckner wasn't aware of the CEO dumping shares until it was too late.
Now, it's TANGIERS GLOBAL, LLC's turn. Zallen must have seen this coming and wanted to dump as much as he could first. This is just going to get uglier and uglier.
Up 15% on light volume? Wot'z happening?
I agree, yet there is action occurring here. There were a ton of purchases a while back that haven't been sold and a lot today... There COULD be a resurgence if we get some positive, fresh news!!!
IMO, Just another OTC where insiders gave the hint there is trouble when they started selling all their shares as you can tell by the warning issued below. GLTA
http://www.otcmarkets.com/stock/GRWC/quote
Bottom line, dead company. Dead stock at least. Ignore unless big price action.
I'll just keep periodically checking its status and hope for a 'Merry Christmas' day. Screw it
Insider, Zallen Wayne Andrews still has 23.5 million shares to dump on the open market.
Not saying this stock isn't tradable but be careful.
Chart shows lots of room to go up from here. Especially with 2018 rapidly approaching..GRWC
I spoke to the CEO about a week and a half ago. Their was an issue with the accountant who put the Financial Report together. The Co is dealing with the problem and should have it resolved in 45 to 60 days. ( The problem was with the accountant - not the Co.)
Any optimistic updates?? Beginning to think this stock/company is trash...
Good morning to All - I just left another msg on the Co. answering machine. If I get any response, I will share it with you! ( Note: I am not investing until I hear back from the Co. ! )
FYI - I called the Co. twice today and was greeted with an answering machine. I left messages to speak with the CEO or the CFO - BUT - as of yet, I have not heard back! - I will try again tomorrow and if I hear anything, I will share it with all of you here!
Thanks "HS" I see it ! - Just learned something from you!:) Thanks again! - Have you contacted the Co. about this?
Not that I know of..
Go to otcmarket.com
That’s the official otc site
The stock still seems to be trading - What's up?
"HS" - Checking for SEC STOP on ETrade but don't see it. Are you sure about that STOP?
Has anyone here contacted the Co. to see if they are addressing the situation? I'm new here so not sure of the history that has lead up to this.
If it is just a matter of filing their Financial's with the SEC - Is the Co. addressing that?
Hi "SW" - Just spotted this Stock yesterday - looks interesting but sounds like there is a glitch with the SEC! What do you think - Temporary or Big problem - ?
Volume picking up.. time to move higher ..jmho
Looking to flush your money down the toilet, but you won't because it might clog the drain pipes? Well, here is a solution to your problems! Put all the desired currency in this security and wait! The SEC gestapo will be here soon, guaranteed! And all your money will just magically... disappear!
Didn’t file financials - Amateur hour
Followers
|
64
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
2865
|
Created
|
07/07/14
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |