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Don't forget, they did not have to hire any additional salespersons either. It's almost all profit as overhead is minimal!
Cannabis Kings is going to be very successful. When you piece together all of its tentacles, you get a revenue generating machine!
Thanks mSolly! Great job again!
Below are some facts about Pzoo as well as some comparison with their competitors.
Top 4 reasons Pazoo is worth investing in
1) Steep Hill methodology and first right of refusal
They have been studying the plant and perfecting their testing methodology for 8+ years.
2) Strategic positioning
Pazoo has lab locations in the three most profitable states for testing (Nevada, Oregon, and Colorado- in that order). Testing will begin in all three by the 4th quarter (we could still have CO in the 3rd)
3) CannabisKing Distribution
Management has been proactive and created another revenue stream for the company with products expected to have substantial footholds in the sector (MJ Payments, AccuVape, and several others)
4) Transparency and Diligence of Management
David Cunic (CEO) and the pzoo team have been straightforward and upfront about their progress. There have been setbacks and delays that were out of their control, but they have used that time positively. They moved into the sector late last year and already have partnered with the best in class (Steep hill), have 3 testing labs, other revenue, and future expansion plans.
Competitive Advantage: PZOO's 2 primary competitors are Digipath (Nevada) and Cannlabs (Colorado).
1) Testing Methodology- The closest competitors have only been testing for 2-3 years and this has been evident in a various instances including the independent Nevada tests scoring Steep hill at 241/250 and the closest competitor around 190. CannLabs also recently could not perform tests promised to their customers due to lack of expertise.
2) Scope
Each of those competitors only have 1 lab, in 1 state, and have made 0 announcements about expansion. Pzoo will have 3 this year and has announced plans to open 2 more labs in 2016.
3) Effectiveness and Efficiency
Digipath had their first PR saying they were testing MJ in early June and claimed to be supplying the first open dispensary in Vegas. The reality is that they are only testing a couple samples a week and running their lab at a loss, bleeding cash. For all of you who want to be able to say we have "testing revenue coming in" this is our current alternative. Until substantial grow operations have produced crops, there is no point to having the facility open and running at a loss.
Potential Concerns:
1) Financing
Until Pzoo has steady revenue and is running at a profit (projected by end of Q4, but likely beginning of Q1 in 2016), having access to operating capital without taking out toxic debt will be imperative. The PR discussing Luchesi bringing them into contact with private financing is encouraging. Hopefully we will find out whether they were successful soon.
2) Federal Regulation
Like any company in the MJ sector, Federal regulation could severely hamper or halt PZOOs progress. There are no presidential candidates that have a legitimate chance of winning who have spoken out against the MJ industry at this point.
Per James Farinella on Facebook:
"I guess I will just make my comment to this string as i am not sure how to start a new one. I spent my weekend with my family. I do not have a bunch of free time on my hands like some others do. I was alerted to alan brochstein's opinion piece. its not an article. it is an opinion piece. not sure if i should thank him, feel sorry for him or both. as i made a comment about going to law school and the most important thing i learned is 10 people can view the same thing and have ten different opinions. well in this instance there is one opinion of my activity that all people including AB all agree on. as AB tried in such a cunning way to hide the two times he admitted in his opnion piece that i have done nothing wrong. he had to because otherwise i would have an open and shut civil case against him. if you take out all of his supposed opinion then everything he copied and posted in that article about me only supports me as a very supportive shareholder of pazoo. yes i invested $2.8 million into pazoo. yes, i brought the marijuana play to pazoo instead of doing it on my own. yes i have introduced funding sources and potential products for cannabis king distribution. all of my activity has been filed in public filings with the sec by pazoo which AB so eloquently points out. so there is full disclosure. but i went a step further and posted on this facebook page about 4 months ago my activities and my vested interest. any individual without an agenda could only come to the conclusion that i not only am a big investor but i am also a person that will refer to pazoo anything that i think could possibly ad value to the company. i know that there are other shareholders who bought in the open market that have also done the same thing. why not??? so i thank alan for admitting that i have done nothing wrong even though he tried to hide it in his opinion piece. i can not be offended by AB bc he means nothing to me. but it does disturb me that he called me immoral. let me ask again. pazoo has filed everything that legally needed to and i have also individually disclosed everything here on this page bc i feel a moral obligation to. I am a practicing catholic. i wish not harm even to my enemies. I do want to point out that AB still has not disclosed his agenda. is he being paid for this. is he in cahoots with someone else. i do not believe i ever spoke to him and i know he has never called me to discuss anything with me. in his opinion piece he cherry picked info again as he left out a promoter or two who recently was involved with pazoo. but again if you take out his agenda driven opinion then everything he copied and pasted into that opinion piece only supports what i am writing here. he even tried to call me a defacto insider. but he so poorly put in a post that i wrote right here where i say if it were up to me i would have done a compaign like this. again "if it was up to me" its not!!! again take out AB agenda driven opinion that it only supports the opposite of his agenda driven opinion. AB also admits i have no voting rights in the company as i am prevented from having more than 4.95 percent of the common. And yes, let me for the millionth time say i want pazoo to succeed in a very big way. don't all of you as well? i do not have to call AB the unethical one engaged in immoral activities. there is no need for me to as he does it to himself with opinion pieces like this one. how come alan has yet to disclose his agenda. at first i was concerned bc his performance on his own paid promos is so terribly bad. then i thought about it and basically anything he says the exact opposite usually happens. so on the paid promos he supports perform so badly then his negative agenda driven opinions on pazoo should mean that pazoo will actually perform like a superstar. AB, if you want even the remote chance of having any credibility then you need to disclose your hidden agenda and also disclose who you claim turned over supposed info on me. at the end of the day AB admits its only his agenda driven opinion and nothing more. if you read this piece carefully AB admits i have done nothing wrong. this is a repeated pattern by AB. and frankly there really is no need for anyone to respond to my post. everyone have a great rest of the week as i will be out and laid up from my knee surgery tomorrow. on a side note if it makes anyone feel good i cracked my forehead open at the beach on sunday adding some serious character to my beautiful face."
Alright! Let's get this baby moving this week! Come 4th quarter or October 1st, we can see these labs open at anytime! That means we have 3 weeks to accumulate before the pps takes off!
I have to commend PZOO. They are laying everything out there with their commitment to transparency. If people don't understand this webcast, it's essentially the same thing small cap biotech companies do to bring awareness to their company and pipeline. They are a great resource for acquiring significant investments. May not seem like much at first glance, but these can do wonders for companies like PZOO!
It's well-known Q3 will be poor as its pre-revenue. You want to look at Q4 and its progression and growth into Q1 and Q2. I think you will be surprising pleased with those financials. Financials don't mean anything at this point. We can agree that the next 3 quarters are put up or shut up. I think they will exceed expectations!
You can't compare the Pazoo to 4 years ago. 3 years ago it was a wellness and lifestyle website. Cannabis testing and Steep Hill weren't even a thought. They are a completely different company now with brick and mortar. Comparisons are not fair or applicable. There is no way they convert their A/S shares to O/S. That is just a scare tactic. Revenue will pay for expansion. Convertible debt won't be offered once they bring in revenue IMO.
You obviously have ill-will towards Farinella. He has dumped stock. Look at the bigger picture. This isn't going to be a pre-revenue company anymore. The difference now is this company is about to become fully revenue generating. There is no way the share price is going to drop like you say with revenue coming in. Even with some dilution, with 4 revenue streams and a conservative multiple, this thing is going nowhere but up.
Isn't $125,000 convertible to 1,250,000 shares equivalent to a share price of
.01 per share not .001. So technically that investment is down almost 30% today. That same investment could've purchased the equivalent of over 17,000,000 at today's closing price which would've made for a much better investment at a much lower price.
Once they start producing revenue, I don't think financing will be an issue. In fact, the revenue being generated should be enough to make them cash flow positive very quickly and all new financing (ex expansion, etc) should be easily funded using the same revenue. The thing we need most is the ability to regain investor trust. The conference call was a great start, but you have to build off of it. You will see the momentum from that decrease every day that passes.We need PR's with numbers, opening dates and so forth. This will bring us volume and volume will bring us a higher share price.
Feel free to correct me if I'm wrong on my calculations. The Price/Sales ratio of our competitor, CannLabs, is about 29. Now, considering PZOO's outstanding share count is 728 million, we can get a rough estimate. If PZOO brings in a measly 2.5 million after they have 4 different streams of revenue (low expectations), the pps would be around .10. Thus, 5 million would give you a share price of .20. All very realistic revenue estimates for the first quarter or two...if not more. You would see even a higher share price if momentum got on their side or they announced expansion into other states! Once revenue starts, things should begin looking real good!!!
Great job! Can you post that on the Facebook page and any other board you think would be great exposure? People need to see the bullet points!
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If they uplist to Nasdaq at some point, you will be. Share price must be $1 to uplist to it!
Wow! Great conference call! Very excited about PZOO!
Looks like this board was taken over by one person who is trying to keep the price down. Don't worry...I'm sure they're doing it cause he has all of our best interest in mind!
People want answers! People want transparency! You give them some and they turn it into a negative. If anyone has questions they want answers to, it might be a good idea to email them to David prior to the conference call. Before anyone suggests it, a conference call is a very good thing! You won't get everything you want, you won't get them telling you to buy or making EOY predictions for share price, but you will get answers. Use them to formulate your own opinion of the company! That's all that matters. No one else's opinion matters...just your own.
They will not give speculative comments like that. They'll just give you the dots and you'll have to connect them.
This conference call is a great thing! Just remember that we all want answers to questions. Don't forget, they won't answer anything speculative and they can't give us certain information that could cause them to violate SEC regulations. So though we will get a great deal of answers, don't be disappointed if you don't get answers to everything. Just be happy this is happening. Penny stocks don't do this. We are blessed with the transparency at PZOO!
It's not dilution! Just scared retailers still selling after that 6 million share sell at opening yesterday by retail investors.
My only point I want people to consider is this: PZOO is still in the development stage so the pps is easy to manipulate. If the share price was at this level after being a fully revenue generating company, I'd be angry and scared. But it's not. Not only do we know revenue is coming in the 4th quarter, but we may also have 4 separate fully functioning revenue streams coming in simultaneously! Investors know this and they will do anything to get price down before this happens cause once it does, these prices will finally be gone forever!
I consider myself a very successful and diligent investor and I totally disagree with you. Days like this can be expected, especially leading into a quarter where the company transitions from developmental stage to a growth stage company with continuous revenue. People will drive the pps down in order to pick up shares at a cheaper price before the price jumps on news of revenue and/or lab openings. These days definitely suck, but they are expected and very common. They have no effect if you are long as we all know that revenue is coming in the 4th quarter! Also, financials are out and they are not delinquent! Be patience and stay calm everyone. Good times are coming! Good luck!
It's retail. One huge sell this morning has scared other retailer investors to sell. No convertibles are coming off the books for weeks! We will see an EOD rebound
I agree. That depends on your time horizon for the stock. In the long term, If they continue with their aggressive expansion into multiple states and we see the Federal government loosen regulations and decriminalize marijuana; PZOO will be in the dollars. That's best case scenario. Short term. If all 3 locations are revenue generating in the 4th quarter and pay off debt, this can get to .10+ by years end. If they don't come through, we'll stay sub-penny.
I 100% agree that patience is key. Unfortunately, PR's like this will test the patience of investors. PR's like this disappoint investors looking for substance. Thus, each one makes it more difficult for the share price to see a significant bump cause everyone writes it off as fluff and then asks "why". They can release 10 of these and they won't do anything for volume or pps because it's not the news investors want. If this type of news came after a huge PR like the opening of a lab, it would have a bigger bump as investors would still be riding the momentum train. These PR's, at best, just frustrate shareholders and hamper pps. They do nothing for momentum and that's what we need right now. Remember, this PR is still great news...it's just timed poorly IMO.
I'm glad Cannabis Kings is generating revenue and that they are keeping us informed! Unfortunately, if they think PR's like this will move the share price...they are wrong. This would've been better news if it was released after the opening of one of the labs. Though we know they are working on it and waiting on slow-moving government bureaucrats, efforts like this won't do much to re-instill investor confidence unless one of the labs is open first. Come on Pazoo! You need to get investor confidence back. If you never lost it, we'd be .015 - .02 right now. You have to come to the realization, getting trust back is way more difficult than earning it in the 1st place. I don't know if they understand that principle. Try this: 1) release financials by Thursday 2) give us update on lab dates (ex. when is your meeting with the Colorado MED) 3) details of contracts signed with growers and dispensaries 4) estimated revenue for 4th quarter and 2016 5) announce the date of the investor conference call and 6) let us know how your quest for more traditional forms of financing is progressing. Finally, if you are going to over promise or give us unreliable dates, please don't say anything until you have something with real substance. Though you struggle in the field of public relations, I have 100% faith in the future of this company.
I half agree with you. Timelines have not been met and there is no excuse for that with regards to their financials...unacceptable. As for Las Vegas, they are ready. The company is not delaying the opening. The State of Nevada delayed it for the entire State until testing regulations could be established by their Dept. of Agriculture. I agree, the convertible debt is awful. Still, they had to use this in order to get the 3 locations built out and ready for business in a timely manner because Federal law prohibits banks to loan them money because of their affiliation with marijuana. Hopefully, this law changes by 2016. Also, I really believe they will buy back more of their convertible debt as they have already done this in recent months...at least I truly hope so as it would benefit everyone. Colorado was delayed due to the State bureaucracy too. As soon as they get their interview with the Colorado MED, the doors will open. Nothing the company can do about slow government bureaucrats. As for this infamous pumping campaign people speak of, why was this so crazy. If not for the Facebook page bashing them it would've been a normal PR. A PR they paid for, as all companies do when they don't have an easily accessible mass outlet to release PRs. Nothing was pumped in the PR. Read it as it was just an update on progress. The same update investors are demanding from pzoo every day on these boards.
It's amazing how people buy a stock before the doors open and is generating revenue and then get angry the stock price hasn't shot up 1000%. Wait till its generating revenue. By some point during the 4th quarter, PZOO will almost definitely have 4 separate streams of revenue coming in. This will generate the increase in pps many are hoping for. Looking for that growth during the developmental stage of a company will almost never sustain as it is based off hyper rather than results. Patience will be rewarded. Unfortunately, many bought on hype months ago. If you are holding, you should be fine.
If that does transpire, the future does look good barring any unexpected setbacks. If they can pay down convertible debt, have revenue from 3 locations and Cannabis Kings in the 4th quarter and announce expansion into other states will be funded from that revenue; we should see a bright future. Still, the speed of growth will be limited by the speed at which states get all new regulations into place. I think the 2016 election should give the sector a nice bounce too. Let's hope there are no more surprises. I'd like to see some positive PR's soon so we can see the progress being promised is taking place.
It's difficult to get traditional financing because Federal law makes illegal for banks to issue financing to companies in the marijuana sector. It's not due to the fact they aren't a real company.
No link. I read it on another board that's why I say for sure. I'll try to email Steep Hill to confirm.
FYI...I would wait till the company was revenue generating and share price was at least .20+ to do any such move imho.
I don't think a forward split would help the company, only hurt them. A simple 2:1 would already raise the O/S count to over a billion. A reverse split is much better at this juncture. It would allow them to uplist to a legitimate exchange, lower the Outstanding Share count, reduce the volatility of day traders and remove it from penny stock land. This, tied with conventional financing could be very beneficial.
In addition to that, I believe Steep Hill is currently working with a couple of states as consultants in developing testing standards for those states!!! This is the stuff people need to hear about. Gives Steep Hill and PZOO an immense amount of credibility.
EOY share price s exciting! Think about it. Here are tentative milestones that should be reached by then:
1) Las Vegas lab open
2) Colorado lab open
3) Oregon lab open
4) Cannabis Kings is a positive revenue generator
5) Announcement of the others states Pazoo will be expanding to
6) Expansion and all future labs will most likely funded by revenue.
Yeah, it's slow right now. Who cares? Once news starts rolling in, the momentum that this thing builds will be amazing! There is no competing marijuana testing lab that comes close to PZOO which is the most exciting part of the entire picture!!!
Yes, we are all frustrated as the pps has been stagnant around .005. Still, we know a lot is going on right now behind the scenes. The only think holding us back is government bureaucracy. The gun is locked and loaded! The stagnancy will be replaced with huge spikes soon. PZOO is patiently waiting for final approval from the Colorado MED and/or Nevada gives final approval on the State testing requirements! In addition to that, build out of the Oregon lab was announced! You're seeing stagnancy cause longs are riding it out and traders simply are putting their money elsewhere until some news comes out. Still, everyone is watching and any day we should hear some good news! Even if it takes weeks...I don't know...the payoff in the upcoming months only has upside!
These interviews are great resource. Also, I advise people to call or email the company. They are extremely transparent and open to discussion.
My point is they cannot announce contracts because I believe they must wait until states like Nevada finalize their cannabis testing requirements. Because until then, all contracts should be tentative in that no party will finalize a contract until they can ensure their product is getting tested to the required State regulations. Now as for Pazoo, this is just a formality as they are the most equipped testing facility in the nation!
I may be off, but I don't believe they can release news of specific contracts until doors open.