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Interesting. That would suppose there are 30 other cars (stocks) out there like PHOT. But we are in penny land, where it is 1/1000 to make it out.
The highest in the last 3 months
Like the Heidenburg?!
We will get those numbers this week and they will be good.
Now if we can just have someone explain Fibonacci or better yet provide a website to plug and play Phot's numbers we will all be on the same page.
Obviously. No one seems to want to write how they get this information. Is it a website? Is it a spreadsheet? Is it a revelation from the Bible or Koran?
Why tomorrow. Why 22.5 million. Why not 31.4159257168 million?
Now that makes sense! Thank you.
Sure that makes perfect sense
Thank you!
I must have missed the explanations, I've definitely monitored every post since early August on this board.
Greatly appreciate everyone's input. I'm planning to get smart on Fibonacci and was just hoping for some sharing of information. It does seem very compelling.
Monkey- i am a Snake (Chinese new year). If you are a Monkey, that would explain a lot. We compliment each other but are quite different in outlook.
Some specific information on how you are calculating these numbers would be helpful. Simply repeating Fibonacci is not as helpful to our board members.
Where are these numbers coming from please
I understand your use of this method and have looked into the mathematical concepts.
May you expound on what this source of information is to make the calculations? Do you have a spreadsheet, software program, website, book, or is this simply mental gymnastics?
What reference and source of information are you using please.
I miss the 'light bulbs'
Concur
You've got an early start on this investment path. Follow your passion and go to a great business school. Participating in the start of this major new industry will pay dividends for the rest of your life.
American Bulls apologizes for its bearish sentiment on PHOT-
http://www.americanbulls.com/SignalPage.aspx?lang=en&Ticker=PHOT
Agreed
$15M is a number that is often stated.
GrowLife has an outstanding investors website that has all of its filed SEC financial statements. Newcomers might wish to browse to to get many of your questions answered.
http://growlifeinc.com/investor/
PHOT is huge on the buzz cloud
http://investorshub.advfn.com/boards/tcloud2.aspx?i=1
Congrats. Remember what you're learning here and apply it in the future.
Touché. I'm also a physician who enjoys hanging out with people who think differently. And I frankly enjoy how traders on this board think. This is valuation at the most interesting level.
I just happen to be studying methods of valuation for mergers and acquisitions at a top 5 MBA program in the world.
Respectfully- Valuation, using the standard discount cash flow method, involves the forecast of revenues. It has much less involvement with balance sheets.
Clearly the market has priced this in since this is news from a couple of days ago.
May be timed with announcements of the strategic direction in the near future. Such as GrowLife Financial.
Could be for a myriad of reasons. If he was a core player like Sterling/Hunt/Genesi that would be substantially different.
We need directors who have extensive networks in the industry, innovative strategic thinkers, successfully led and exited fast growing companies in new markets, sterling reputations, know how to raise capital. This is a huge opportunity and they probably know who they want already.
SB wire's news is usually late. Not sure what value it brings.
That's Mullet's classic line
Mullet wants in at lower before PHOT shoots up.
Agreed.
There may simply be a time element in regards to information being provided.
We certainly appreciate AB's valuable perspective and his participation on this board.
I share your enthusiasm and spent a weekend looking into PHOT before investing. Dr Gupta's essay attracted my attention in the first week of August. It appeared the floor was .03 since our senior executives have their equity priced at that level.
For valuation- different methods are used including multiples of enterprise value, comparison of other companies in industry (ROE, P/S, etc) and the conventional discount cash flow method. All present challenges given the nascent stage of this industry. Thus many of us are using our intuition which will hopefully be validated within a few days with the earnings report and updated guidance for 2014.
Not sure why it would not have been offered as a SaaS product then.
Real investors, which this board has many, welcomes critical thinking. Each of us cannot know the entire picture (valuation). Together we can build a more complete and accurate picture of PHOT.
Some individuals subscribe to the efficient market hypotheses that the value of a company at any given moment is completely accurate (Malkiel). Some other folks (Buffet, Shiller) suggest the market is rather inefficient and there are opportunities especially when information is assymetric, or incomplete. For example, Joseph Kennedy created a great deal of wealth during the 1930's using this strategy.
Current available information for PHOT may be incomplete- and the market may not have priced the synergisms, new products, and building of distribution networks. Not has the general market accepted this industry because of the culture- which is changing.
So the debate might be whether the market has efficiently priced this investment. Some of us think not.
Great question: valuation of small companies (nanocaps and microcaps), in my opinion, is fascinating because there are few numbers and the numbers reflect early growth. Companies this size are rarely cash flow positive and provide little/no information. It's an art rather than science.
We are left with what we can value which is (1) technology, disruptive innovation, first mover advantage; (2) market analysis-which with new products/new market (suicide quadrant) we will need to evaluate the macro/political climate and consumer acceptance of the product(s); (3) senior executive experience and culture of the company; (4) strategy- probably the most important component. Great companies are create great value out of nothing through ethical behavior manifested by consistent signs of collaboration (mergers and acquisitions).
At this early stage most VC firms use projected revenue x a multiple. A multiple of 10 is generally acceptable given the risk of these types of investments. With a projected revenue of $15M next year, that would calculate to $150M capitalization. With approximately 700M shares fully diluted, that calculates to .22 which was the Grassroots Investor report number which they reaffirmed (.23) last month.
Fundamental investors understand that valuation is not necessarily the sum of the parts (divisions) of a company.
A focused, visionary, disciplined and coherent strategy (Porter, HBS) brings synergism to the separate components, adding great value to a company. GrowLife seems to have this.
Agreed. Objectively:
We do know cultural trends (Pew, Gallup polls).
We know results of voter referendums and the acceleration of acceptance for the legalization of Cannabis.
We know the medical literature supports the use if cannabis
We know the market growth is accelerating in this industry
We know there are no national brands in this industry
We know that PHOT is the only fully reporting SEC public company in this industry.
We know PHOT's senior executives are experienced businessmen who differentiate themselves with deep legal knowledge of this space and are national and state business/political leaders