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Those are BAD too.
Who's numbers are they? This is a filed report to the Securities Exchange Commission, right?
My posting August 15:
Re: $40Bill Post# 15132
Thank you for your comments.
I'm a MD with a MBA and have more of a strategic/value slant on investing. In fact I trade very infrequently. I have held Concur (cnqr) since 2001 (.91 purchase price) and have followed that enterprise's develpments daily for twelve years (current orice $100 or so). I see parrallels in with this company. It will be a long road, and is going to be a lot of ups and downs. But this company has real potential- new market, experienced senior management with ambition, vision, and strong ethical foundation, new CFO with vast experience in raising capital, technology, high quality, and deep knowledge in this space. Their senior management includes many attorneys. they care deeply about seeing this through for multiple good reasons. The company is unusually transparent for its size so that investors can truly evaluate them. And they control cannabis.org. They are leveraging that very well at this early stage- check it out!
My only concern is the economic logic. How will they truly turn a profit some day. And can they reassure investors on how they are going to do that consistently?
Report TOS
Look at my first postings in early August. I bought 1M shares at the first rise in August 09. I started this rise, as documented in my posts. I had a thesis of holding long and would have continued to hold if the company reached their targets.
let's see what Sterling and Hunt say today.
Those other company's books are Rob Hunt's. Even worse since they are acquired his stores. Why are his stores selling less. Or we're those revenues not accurate and in that case they overpaid and he got a nice exit?
Silly reason: they miss their target by 35%.
This is a penny stock, not a long term investment obviously. Just be careful.
I've done it before- with Concur Technologies (.93-$97 today). They never missed estimates for 48 quarters. This company missed their estimates in the first quarter I bought shares. I'm out because of their mismanagement.
Plus there's 650M shares out there. Concur today only has 56M shares and it's market cap is 5B dollars. When I invested their cap was 25M, about the same size as PHOT a couple of months ago.
I did sell on Friday.
They are not meeting targets. Their balance sheet looks much worse than last quarter. They don't seem to be selling as much in each store. Their model involved acquiring stores and scaling as quick as possible. it only works if the same store sales keep growing.
In any case I made a short term profit from .0314 from 1M shares. you can do the math. I'm just disappointed in how awful the numbers are after the estimate was $500k higher. Why are their same stores not doing as well as last year. Why did they not meet their targets by 35%. No matter how you analyze these numbers, they are awful. The shareholder equity is $200k. They lost that last week when we sold.
They are now. This is a merged company.
Rob Hunt's stores did better last year before merging with GrowLife. Ask him why today.
Again the numbers are not good. Period.
Do you have a MBA from a top school? There's no one in this company with a MBA. Good luck to you.
Yep. They made less dough and lost $4M. Business model is not working.
Page 16 of the filing. Not good.
http://www.sec.gov/Archives/edgar/data/1161582/000107997413000726/growlife10q9302013.htm
I wish.
The following are unaudited pro-forma results of operations as if the acquisitions had occurred at the beginning of the period for the nine months ended September 30, 2013 and 2012. Note that these pro-forma results include the operating results of SGT, Phototron, Greners, Urban Garden, and Rocky Mountain Hydroponics/Evergreen Garden Center:
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2013
2012
2013
2012
Revenue
$ 1,313,399 $ 1,778,511 $ 4,574,169 $ 5,578,167
Cost of revenue
1,051,776 1,272,599 3,376,555 3,914,892
OBE for this company. Not germane if they don't know how to manage growth.
some great questions.
I was really hoping for some color on metrics the company is using to measure if they are meeting earnings target. same store sales, customer retention rates, etc. I'm not convinced they have the management to run this business.
Where are they with a real board of directors? they need help obviously.
Why did their 9 month comparable sales decrease? That is truly disconcerting (page 16 on the SEC).
Bottom line- this company is in serious trouble. They can talk about the opportunity of this industry but without serious shoring up of business management they are not going to make it.
In the last two quarters SEC filings, it appears their existing store sales continue to show decreasing revenue. This raises questions with their strategy of acquisitions. PHOT can't keep trying to grow through acquisitions if their stores continue to have poor sales. Why are they having trouble selling products in an expanding markets. Are their 'lightbulbs' overpriced as Mullet claims?
'I cannot resist a suggestion which embodies all of my hopes for the
school. It is that nothing will ever induce us to lay aside instruction
in the ethical foundations of American business. Without a firm
attachment to unimpeachable integrity, in our business as well as
in our personal affairs, we build on shifting sands and there can
be no future for any of us.'
Colgate Darden
The crash of 1907 is also a great read.
Perception is built on trust. The overriding perception is mistrust at the moment. That is why your shares are worth less than before the announcement. Words about GIFTs, kiosks, etc have no meaning when there is a perception of a lack of honesty about revenue targets. Without honesty, there is no perception of value.
Spreadsheets don't lie. They missed. Why?
I share those sentiments.
Thank you.
At this nascent stage, it would be fair to estimate PHOT would not be cash flow positive for at least another year. However, grossly missing an earnings estimate without an explanation is concerning. Generating less pro forma revenue compared with 2012 (9 months) is disconcerting. Why are their same store sales decreasing?
Some of us are serious investors that have been honored to have been part of the previous run up. Unfortunately the earnings report was not good. I'm a physician with a MBA.
1. Why did GrowLife miss earnings estimate by 35%? Why did the earnings news not explain this?
2. What metrics is GrowLife using to track revenue and why is this information not being shared? For instance- new customer rates, same store sales, customer retention rates?
3. Why is there not a previous of the date when the earnings report will be given?
4. Will there be regular earnings conferences?
5. How confident is GrowLife of meeting their earnings target for the year? What are their forecasts for 2014?
Thank you.
Why did they sell less than last year using 9 month comps (page 16)?
Making revenue targets
Page 16 of the filing.
You're welcome from a MD/MBA
Comparables in sales with the same assembled assets, as if GrowLife owned Rocky Mountain last year. Please read the filing.
Yea. Check out the SEC filing.
I disagree. Their comparable 9 months shows less revenue than last year. Why are they not selling?
There does seem to be a credibility issue or worse, frank incompetence. Their inability to attract real people with MBAs from real schools is worrisome. On the sidelines until this is resolved. Genesi their CFO has some responsibility. His record is not the best as he folded a mortgage firm during the recession.
My sentiments exactly. I'm out, base of .0314, 1M shares. They did not meet numbers, missed by 35% with no warning. They need help. Will reeval on Sunday during the radio talk. Looking for frank discussion of the complete miss on revenues.
Wow. Okay
Thanks.
Thank you Office.
I'm still in.
The vast majority of Penny stocks do not succeed because of 4 reasons according to Investiopedia. Note that PHOT answers 3 of those reasons. That is why this company is rare.
http://onswipe.investopedia.com/investopedia/#!/entry/the-lowdown-on-penny-stocks,5228a5abda27f5d9d0178198
This article will inspire all PHOT fans. I still hold Concur (bought at .93), its the first story among many others.
http://m.benzinga.com/article/3014935
I bought Concur at .93 and still holding at $97. This is my second go around. I don't trade.
Yes
Yea