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There's no doubt that is a mostly true statement that penny stocks are not long investments.
Some of us have had unusual penny stock experiences. For instance, there are shareholders like myself of Concur Technologies (.32 on March 2001) is now at $97 a share.
I have been a long investor and tracked their quarterly statements for over ten years. When it was a penny stock it certainly was not cash flow positive.
Everyone: GrowLife's Investor web page is referenced below. It is a wealth of information and well organized by date.
http://growlifeinc.com/investor/
GrowLife has an investors web page that has very complete financial statements filed to the SEC that might answer these and many other questions you might have.
Our senior executives want to- I'm sure of that. But they are attorneys and realize this is a Schedule 1 drug.
They will stay in infrastructure, plant all the seeds (pun intended), script all the stages, and build the vehicles (distribution networks) to move in when the federal law is finally changed in a few years.
Hence we are in penny stock land.
That will change as more investors realize that PHOT differentiates itself by actually playing ball using the rules of the SEC.
The long investors definitely don't want to drink the Kool-aid.
We do appreciate the diversity of thought and critical thinking on this board.
Timed with the upcoming earnings report- this may give credence to the hypothesis that the company will meet/exceed earnings guidelines.
What better way to gain momentum as to go public with additional news right after reporting earnings.
A lot of this ongoing discussion may be attributed to our collective incomplete knowledge of GrowLife's marketing strategy. For example- what segment of customers is GrowLife targeting? Is it very knowledgeable customers? Or a much larger group of beginner/intermediate growers? Customers that prefer luxury brands or inexpensive ones? One -time customers or long term customers (Rob Hunt has mentioned targeting long-term customers). Commercial or private growers?
A company's business model is tightly coupled with its marketing strategy. We might find out more as time goes on through periodic updates and quarterly reports. On the other hand, we may not find out GrowLife's complete strategy ever- since that would give our competitors an advantage.
I asked a similar question to Kurt (Investor Relations) last month. Here's his response:
Kurt:
"I'll forward that to the web guys. I know a bit about SEO and sometimes it can take a bit to earn organic first page ranking".
Hi Kurt,
I am a shareholder of GrowLife and have been very pleased with the company's performance.
However- cannabis.org is not presently showing up as a hit when googling cannabis. It was noted on the InvestorsHub GrowLife board.
It's a great question since this is the whole premise of Google's business model by helping companies generate revenue and providing business intelligence on how often websites are hit, how high on search the websites appear, and which search terms are associated with traffic. GrowLife may be missing leveraging an essential set of tools in Internet commerce.
Exactly the point.
That is why PHOT might be undervalued as the risk to shareholders has been incredibly lowered by their transparency. No other OTC company in this industry fully reports to the SEC.
Thank you $40Bill and welcome back to the board.
This is indeed different news: GrowLife has been known for great customer service and expertise. Does GrowLife have a customer support/service line?
Probability of Bankruptcy- PHOT 1%. MJNA 41.8%
http://www.macroaxis.com/invest/compare/PHOT,%20MJNA
Agreed.
An alternate strategy is to trust intuition and sell when that intuition is invalidated by objective data such as an earnings report.
By doing so the upside potential is protected. Downside risk can easily be mitigated by a placed stop loss order.
PHOT generating a lot of Buzz...
http://investorshub.advfn.com/boards/tcloud2.aspx?i=1
An interesting strategy to sell before public news about the new product (kiosk).
Price appreciation frequently is associated with unexpected good news.
Rob Hunt did comment about this during the record sales announcement for Greners.com back in early September.
The Yahoo stock description that you referenced is very complete; here it is in its entirety:
"GrowLife, Inc., formerly, Phototron Holdings, Inc., incorporated on March 7, 2001, sells and distributse mini-hydroponic greenhouses (Phototron Units) and horticultural seeds, mineral nutrient solutions, growing mediums and germination kits. On February 14, 2011, the Company entered into an agreement and plan of merger (Merger Agreement) with PHI Merger Corporation and its wholly owned subsidiary (MergerCo), and Phototron, Inc., (Phototron). On March 9, 2011, MergerCo was merged with and into Phototron and Phototron became its wholly owned subsidiary. In May 2011, it announced the launch of its wholly owned direct selling hydroponic gardening subsidiary, GrowLife Inc. In April 2012, it merged with SG Technologies Corp. A newly formed subsidiary of the Company was merged with and into SG Technologies Corp. On July 23, 2012, the Company acquired Greners.com, related to the online retail business operated by Greners. In June 2013, Growlife Inc acquired Rocky Mountain Hydroponics LLC. Concurrently, Growlife acquired Evergreen Garden Center LLC, and 58Hydro.com. In June 2013, GrowLife Inc announced the opening of a new retail location today in Plaistow, New Hampshire branded GrowLife Hydro.
The Company designs and manufactures indoor mini-hydroponic greenhouses capable of growing almost any herb, vegetable, flower, fruit or terrestrial plant better, stronger and faster than traditional farming methods. Its Phototron Units, consisting of 21 inch x 39 inch units and 21 inch x 51 inch units, provide between 18,900 and 36,000 lumens of light. Phototron Units also allow users to control what a plant receives, grow crops densely, avoid using pesticides, increase yields and automatically water plants.
The Company also formulates and sells horticultural seeds, mineral nutrient solutions, growing mediums and germination kits to facilitate hydroponic gardening through the use of its Phototron Units. In addition, it designs and manufactures replacement parts for its Phototron Units to facilitate customization of the units. It owns a mailing list and have a customer base exceeding 50,000 people. Its re-order program, which involves the sale of nutrients and related products and replacement parts for Phototron Units, represents 50% of its revenue."
Nice job!
Let's stay respectful on this board. People have truly enjoyed participating. This is the first time I have seen this language in 3 months.
Many of us have served in the military, some of us for 30 years in a variety of fields. Let's keep our honor with our fellow citizens.
That is brilliant. I hope IR monitors this board!
An ingenious plan to build a loyal customer base while understanding in real time the needs of growers in a myriad of geo/political environments. They are targeting to build a national cannabis cultivation infrastructure.
May you provide the link for us please?
There will be lots of competition- however, this new market is huge. In a new large market competition is not as much of a concern. There will be plenty of business for smart outfits.
Posting the lead article on Bloomberg Mobile this afternoon:
http://mobile.bloomberg.com/news/2013-11-07/pot-smoking-quadriplegic-s-firing-shows-have-over-rules.html?cmpid=
Agreed. Reputation and integrity is unusually important for investor acceptance of this industry.
For the next couple of years it seems like senior management is targeting a growth rate of around 100% per year. After that it's not as clear; the Grassroots updated report last month has the revenue growth of around 50% from 2015-2018.
We know this is a rapidly expanding new market which is being continually fostered by customer acceptance/demand and ultimately deregulation (legalization). Historically the closest comparison might be the era during and following Prohibition.
We know this company has a strategy. PHOT differentiates itself with visionary leaders who are passionate for the right reasons and have legal expertise. They have made some great moves in mergers and acquisitions and we should see the results soon with their earnings report and updated revenue guidance for 2014 (that by the way is the most important piece of information we hope to get in their upcoming report).
My biggest concern is finance and capitalization (dilution as Mullet talks about). I think the company still needs more financial expertise, leadership, and network.
I actually owned Apple when it was around $38 and sold in the $40's.
I actually own Concur and bought at .93 and it is now around $103. Last night I listened to their CEO Steve Singh give their 4th quarter results at their 20th anniversary. His bision is to be at $1B in 2016. When i purchased their stock in 2001 they made about $25M in revenue.
Back then Yahoo for Concur that was almost as nice as this one. Traders came and went, some were very memorable like Mullet. Only one in ten years stayed around as long as I did.
So because I am colored by my experience, I actually think a penny stock can go up over 100x. It's probably 1/1000 but I do see some parallel patterns with GrowLife at this nascent stage.
What might be interesting to everyone is there is a record of posts that for many of us extends back into the $0.03 arena or even lower. Traders may want to keep that in mind.
That is a great video that explains the Bulls are still in charge. Thank you.
Those might be good estimates. Prudent financial management and access to capital will be the key to our success.
I hope GrowLife is successful in assembling a reputable and solid Advisory Board of executives with deep financial experience.
I've also enjoyed this board. There is a very diverse group of writers - in age, gender, culture, professions, knowledge. I'm learning a bunch especially from the traders.
Entertaining post!
Entertaining post!
Networking, expertise, information sharing, business opportunities via boots on the ground?
Read this article from Illinois, which explains the growing need to grow weed!
http://chicago.cbslocal.com/2013/11/05/medical-marijuana-could-mean-big-money-for-illinois-residents/
That's great. Look forward to what news you will find.
Agreed- for long investors a rational decision would be waiting for more information: the earnings report in a couple of weeks,
Absolutely. However- there are hints about the future- general trends on culture and sentiment, disruptive innovation, empowerment of people, and medical advances. The trick might be to see what organizations can not only see but execute a vision. I invite your attention to the Growlife Investor website- the story and dreams are right there.
Thanks, that is useful to review.
Huge market in Colorado:
http://m.huffpost.com/us/entry/4219447?utm_hp_ref=business&ir=Business
PHOT leading on Buzz Cloud
http://investorshub.advfn.com/boards/tcloud2.aspx?i=1