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Have you considered how they will ever make money paying themselves $2M a year with operating income of $300K on rev of only $18M? Even growing at 20% they have operating margins of 5-8% equates to revenue of $21M but the last quarter was a disaster....$3.45M. Its a great product but the only ones making money are the Meiers.
You seem convinced but you fail to focus on the fundemental flaws. No offense but I think the notion that they sold shares to feed their families is absurd. It does tug at the heart strings though. My family doesn't eat millions a year....they must have large families.
Here are the important facts.....read the company header on this Home Page. Heres what DP has to say about IVXX...."We are pleased to expand our cultivation footprint while allowing IVXX to elevate in both quality and consistency. This extension of our cultivation capabilities into the Emerald Triangle, home to some of the world's finest cannabis, will help us to expand both the Company's product line and margins over the coming year."
“OUR GOAL IN DEVELOPING IVXX™ IS TO BRING MUCH-NEEDED QUALITY AND ACCOUNTABILITY TO THE ENTIRE CANNABIS INDUSTRY, WITH THOUGHTFUL BRANDING THAT ALLOWS CONSUMERS TO MAKE EDUCATED AND INFORMED DECISIONS ABOUT THE PRODUCTS THEY PURCHASE.”
-DEREK PETERSON, CEO, TERRA TECH.
Now go to the IVXX website and it says its available at select retailers. I challenge you to find a single retailer that sells the non existent product. Pay attention to the photos of their locations and assets....mostly dilapidated structures and not what you build an empire around. Not to mention they lease from insiders and pay exhorbinant fees such as $360K per yr in "security services" just for the oakland facility alone...Thats $30,000 month in security. I suppose thats so an insider can feed his family as well.
Now lets get down to the stores themselves....they are nothing special as same store sales are flat. They show growth by opening more stores and the pace is painfully slow. Its still not a growth story without same store sales growth.
When you consider the massive insider selling, no growth, no Ivxx product, and the numerous insider transactions coupled with a lot of competition by more experienced companies you have in my opinion a story that DP has told a million times at every earnings call. If you listen to one of his calls the first thing you notice is what a cheerleader he is...telling the same old worn out story and bypassing the actual companies lack of performance. They don't know anything about growing weed like hundreds of other experienced growers in Northern California. I doubt they will be able to make IVXX a brand name other that a product to sell in their own handful of stores. That alone won't make it a household name and thats assuming its any good which is not a given. Theres too much bs with DP and the insiders to trust the company plus the business plan is missing so many pieces like know how for one......Trade it but don't own it unless your prepared to lose all your investment which is how i see this ending when the money dries up.
If cannabis was legal tomorrow TRTC would still be a pos company. Considering the lack of assets, massive insider selling, insider lease and security agreements, husband and wife teams of insiders all selling of course....add this all up and you have a stock that's riding on dreams and a story, The reality is if it was legal tomorrow they would be crushed by real companies with real management and resources and without over a billion shares outstanding. They have a couple retail stores and a greenhouse they don't even own that grows and sells lettuce. The size and scale of all this is ridiculous especially their new grow facility they announced of a whopping 13,000 sq ft. Thats a large garage folks.......
And what assets might those be that they own? As for expertise can you expand on that....experts at what? They haven't grown a single bud yet and I don't see huge growth in lettuce,
Anyone listen to the conference call? If the dividend is secure then your looking at a 12% return while you wait for the stock price to catch up. My company mfg equipment thats used in fracking operations and we are balls to the wall right now. I can tell you that the industry is struggling to gear back up since the downturn. Everyone is hiring and I believe we are early in the cycle as long as oil stays over $50 and some expect upwards of $70 later in the year. If it ends here this will have been the shortest cycle in history! For whatever its worth.....
Ive never seen trading halted for such a relatively minor news release. That's a rookie move imo.
Im curious how you know fund managers are trading in the stock? For that matter what funds do you know that own the stock?
Trading halted any idea what’s up?
Valuation is tough like it was in early days of biotech. There is so much uncertainty it’s based on probability or relative value. Canopy has a market cap of $4.2B. CB market cap is under $400M so about 1/10. Without analyst visiting facilities and vetting out the relationships etc it’s not easy to quantify value. Still just based on surface information it would seem the Stock could easily double from here. Then again the market cap of the others in the sector are moving up so for now it’s a game of catch up but at some point the valuation will reach the point of ridiculous and it’s going to sting. Right now Canopy would need to earn $38MYr to justify a PE of 100....not saying it’s not possible .20 per share? CBWTF needs to earn .01 or $2.6M.
I don't believe that would be allowed since the Federal Govt controls the border and its still a Federal crime. Not until its legal on a Federal level can there be any regulation for trade and export etc.
Over 5M shares traded ending down huge from the intraday high. The company halting trading overnight well into the trading session was the most retarded thing Ive ever seen. Really makes me think rookies running the show.
Halt trading was totally unnecessary for announcing a convertible offering. LAME!
I tend to agree with you that whatever the development its on going if the company requested trading be halted. Still its very odd for a company to do that just minutes before the market closes. The risk you take investing in low cap amateur companies with little oversight.
My mistake I just found where the same question was asked. So has it been explained? The bb is pretty crowded with nothing it's hard to find the meat.
The lease agreements with regard to the Oakland store and grow facility and odd. Also the security fee paid to Martin Kaufman who also is involved in the lease agreements.
Notice the real estate transactions between a Martin Kaufman and also parents of one of the directors. The Oakland location is owed by Kaufman and leased to another party that then leased to the company. Also the Oakland grow facility is leased from Kaufman and in addition pays Kaufman $360,000 year for security. Anyone explain this to me?