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But you didn't answer my question. What is the convert price?
I am short now, not squeezed so far!
Insane valuation - I think weed smokers have entered the market. Not advisable!
COLORADO SPRINGS, CO--(Marketwired - Jan 2, 2014) - Advanced Cannabis Solutions (ACS) (OTCQB: CANN) announced today that it has successfully met the minimum capital raise requirements for its current $5 million convertible debt placement. This offering, managed by the Denver office of the brokerage firm Spencer Edwards, will be used in the near future to fund several real estate acquisitions of marijuana grow facilities in Colorado.
I see what you mean now. At what price does this debt convert? I don't see any details for it.
September 30,
2013
(unaudited)
ASSETS
Current Assets
Cash $ 465,184
Accounts receivable 8,270
Total current assets 473,454
Total Assets $ 473,454
Sorry, I can't understand what you are saying.
I'm saying they will raise money and increase share count. What are you saying?
Don't be surprised to see company raising money ASAP at prices significantly lower than this. How could they pass up such a golden opportunity?
Right! LOL
But I meant to say the majority or large shareholders holding restricted stock. They must be absolutely dying to sell shares, but how?
So a very nice return for a real estate investment, but a long long way to go to justify spending $150 million for the right to participate. As I see it, anyway.
GLTA
Hi CoachZ- let me try to follow your thinking.
I'm trying to find where they will get $9.6 million rental revenue from this one property but I'm thinking you have read $100,000 ANNUAL revenue as $100,000 MONTHLY revenue.
So assuming $100,000 annually, here's how I value this..
From the 8k - "On December 31, 2013 the Company purchased a property in Pueblo County,Colorado for $450,000. The property, which is located in a suburb of Pueblo, Colorado, consists of approximately three acres of land, a 5,000 square foot steel building, and parking lot.
The Company also agreed with the tenant to begin construction of an 8,000 sq. ft. light deprivation greenhouse on the property at a cost not to exceed $400,000.
Once construction is completed, rent will increase to $100,000 annually for the duration of the lease."
So, $100,000 per year for a total investment of $850,000. That's a very nice cap rate (the real estate industry's measure - inverse of PE) of 11.8%. If they can turn around and sell that property, after construction and with lease, at an 8% cap, they could receive $1,250,000 or $400,000 in profit before interest and management expense etc. Let's say $300,000 net.
So, to my mind, in order to justify a current market cap of $150 million they would have repeat that performance 500 times. That seems quite a stretch.
Please let me know what you think. Peter
Why should the price be in line with pre-split price when there are now 1.2 billion additional pre-split shares.
30 million x 40 = 1.2 billion.
Well, they seem to be getting lease rates that are not so inconsistent with any other real estate deal. I'm not seeing them getting paid a huge premium for this special expertise, probably because it just isn't so special.
Agree that they are the ones with the balls to step up and do it, but I don't see much that will produce the lease rates that justify this valuation.
just my humble opinion as a real estate investor
I apologize in advance for my ignorance.
Several pink sheet marijuana stocks are up several hundred percent this year. How can these companies or their shareholders take advantage of the inflated share prices?
Is there any way for the companies to issue free-trading shares?
Assuming not, what must the do to make restricted shares free-trading?
Can the passage of time alone do the trick?
Or are they likely to just remain priced in the stratosphere?
What does CANN do that any real estate investor can't do?
I don't get the valuation here of $150 million when the property owned is worth about $1 million. No moat.
GRNH Facts
Total assets: $42,481 at 9/30/13
Shares outstanding - 150,000,000 common plus 10,000,000 preferred that convert to another 100,000,000 common stock.
Market capitalization at $0.45 per share - $113,000,000
For the nine months ended September 30, 2013, the Company issued 20,250,000 common shares of which 3,000,000 shares were $120,000 cash (4 cents per share)
Price per share 12/31/13 - $0.04 per share
Market capitalization at $0.04 per share - $10,000,000
Cause of 10x value increase in 10 days - none
'Evidently' because of the wording in today's company PR?
If they do process it, can it really be retroactive as the company has implied with a record date of December xx?
MDBX - confused by the legality and fairness of this 1:1 stock dividend. The value per share gets cut in half, but the dividend shares are restricted for one year.
How can that possibly be fair? What happens to all the people who bought this week on CNBC exposure et cetera, and then come to find out they can sell only half their shares?
Was the dividend voted on by the people who are directly affected? Are this week's buyers fairly informed of the situation?
Seems incredible to me. Imagine all the pump and dumps doing that. Are folks here interested in contacting the relevant market protectors? I am insufficiently conversant in all the rules to sound credible.
The problem with a stock like MDBX is that the only reason to buy it is that the share price is rising. At some point, the share price stops rising. It can't rise forever.
When that happens, there is no reason to buy any longer and therefore no reason to own it. Then only sellers remain. And then the price goes down right back where it came from.
That's the way it goes. Unless someone wants to make a case that the fundamental value is today somehow 5x what it was a week ago.
Bedrick appeared. Presented himself nicely but there was no company specific information by anyone. CNBC did not mention that MDBX is a pink sheet stock. No real information that I picked up.
Really, a pink sheet company on CNBC? Have you got a link? Is it about the whole group of cannabis stocks or about MDBX only?
Why is MDBX rising so much? I don't see any news and the fundamentals are not too attractive.
People do not like to hear that the lottery ticket they bought has no chance of winning.
Penny stocks are about desperate people hoping beyond hope, and the wolves taking advantage of them.
Oh the irony!
It's not momentum in the usual sense. It's up on manipulated forced buyins of short shares - orchestrated by promoters.
They put their millions of shares in margin accounts, making them available for shorting. The shorts short the shares. Then the promoters pull the shares out, taking away the borrow and BAM - shorts must buy the shares all at one time.
Please tell me you are kidding.
New Thread!!!
"Now that the SEC is calling trading halts more frequently, let's play a game! Guess the next ticker to be halted. One guess per person. Once there's a new halt, you can guess again. Have Fun!!!!!"
http://investorshub.advfn.com/The-next-stock-to-be-halted-by-SEC-is--27649/
That seems like a pretty fair deal. Done.
As long as you are aware that the long term value of this stock is between $4 and $6, you can trade it profitably.
Did you notice that they paid 5.5 times operating profit for this new (not so new) acquisition. Use that multiple on the whole company.
Then I want to be a Ponzi schemer. Where do I go to be reprogrammed?
If you think that's a possibility then it must be YOU who is the happy optimist.
http://www.apoorplayer.net/2011/12/rose-colored-glasses/
lol, maybe they're just happy optimists, always seeing the glass half full.
Dunkirk NY - If anybody out there has a spare pair of rose-colored glasses, I would appreciate it if you would send them my way. I don’t have a pair.
They seem to be quite fashionable lately. Almost everyone I come across these days, either actually or virtually, seems to have a pair. And they seem to wear them no matter what they’re watching or reading. Politics, television, college sports, the economy, theatre – just doesn’t seem to matter. Careers are going well, every show is “outstanding” or “brilliant,” facts are polarized out of view, and all is – well, rosy.
Well, I would guess the psychological profile of the typical Ponzi operator is not average.
Fake volume today? 4 million shares doesn't seem possible in this low profile stock. That could attract SEC.
It's not a new observation that the SEC's requirement to disclose the parties behind the promotions is ineffective as practiced. The idea of the requirement was that investors could know, but promoters simply funneled funds through anonymous dummy corporations.
This rule was never tightened to prevent this go-around. Sadly.
Did anyone figure out who is behind the pump - who paid the $2.75 million....
Nugget Enterprise LLC - they really ought to be required to list the State of incorporation at least.
It's not a reduction of shares at all. Read the filing. No change in value or per share value. If anything, this is worse for common holders as now the insiders are ahead of them in any liquidation. (as if there would be any proceeds from a liquidation)
Unscrupulous people feeding off the ignorant is what this company is all about. I truly cannot understand how anyone can live with themselves and support this sort of rip-off.
The world just isn't anything like what they told me when I was a kid.
By the way, the pix on your profile are lovely - I mean that.
From the SEC filing 9/24/13, page 19
Ended July 31, Year Ended July 31,
2012 2013
Revenues $ 2,925,152 $ 2,858,200
Cost of Sales $ (2,251,335) $ (2,211,702)
Operating Expenses $ (619,325) $ (801,297)
Interest Expense $ (19,914) $ (16,652)
Other Income $ 26,332 $ -
Net Income (loss) $ 60,910 $ (171,451)
I don't see where he says revenue to increase 6x. Could you please post the quote? Thanks.
http://seekingalpha.com/article/1869661-which-oil-stocks-to-buy-after-the-global-shuffle#comment-26470221
Octagon 88 received very bullish reports about its holdings in Alberta, the rich province in Canada. The company recently released its production video for the Elkton Eriosional Edge. There is third-party validation of potentially more than one billion barrels of oil for that block.
Jonathan Yates is the founder of EarnedMediaUnlimited. He has had thousands of articles appear under his byline in websites and periodicals such Seeking Alpha, The Washington Post, AOL Daily Finance, Foreign Policy, and The Motley Fool, among many others. The views expressed are his own. In his personal investing due to his work with SmallCapNetwork, he has started to develop a greater appreciation for the potential in undervalued small cap stocks, both for assets and revenue.
No, I don't. Seems pretty clear to me it's a pump and dump - but not very actively traded so far.
Price is down but with 36,000 shares volume it's not much of a dump.