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You have gone off the deep end.
Q1 results were $36M. That didn't include the 30k additional stores added in February. The results didn't include the bidi pouch either.
Got my .30 bid in lol.
Yup, institutions don't trade OTCs and if people did some basic DD they'd learn so much.
This is so obvious. The $50M offering, the R/S to get up to Nas. This is the route HGEN took in September 2020.
As soon as they did the 1:5 R/S, they raised over $70M underwritten by JP Morgan and Jeffries. How did HGEN raise $70M you ask? They didn't, JPM / Jefferies went out and found the buyers.
Don't confuse this R/S and future growth with your typical OTC R/S.
What made it go from $.30 to $3.00? Were you even here for that, or did you sell at lows? I think we all know the answer to that.
If they are going to raise $50M, then I'm sure institutions know of KAVL.
I suspect that's why we're seeing the urgency to get on NASD.
Time will tell.
Those .90s were a blessing so far!
Reasonable list. Please send that to IR, maybe they'll provide us clarification.
I think the offering will be used for buying the patent (obviously), possibly production/manufacturing, and maybe some more products. That $50M is what gets the big boys involved, and they will protect their investment by buying common as well. I think this is the main reason they want to get on NASD, because they know that the offering will bring the institutions to the table.
If we're a $1B company, it doesn't matter if it's on 282M shares, or 58M shares or 1B shares.
Imagine if half of these retail folks did some basic DD, then maybe they'd see why this is a buying opportunity.
What a genius. I think everyone and their mother would have guessed red today.
Retail traders like you are good at panic selling lol
Watch what happens in the coming months ANTADOG, maybe you'll grace us with your presence like last time it ran 1000%.
You sell yet?
Down because of retail, but this retail guy right here is buying more.
What koolaid? The koolaid that the company did $100M in 12 months? Anticipating $400M in the next 12 months? Adding new distributors, uplisting to NASD, possibly buying a patent and adding another product to our lineup? That's not koolaid ManSax, those are facts. And those facts and future growth is what's going to help us surpass the $3 pre-split highs.
The money I invest with has no bearing on what I provide my wife and child, but thanks for your concern.
Questions have been asked and answered. You'd rather just sulk in the corner than see the positives.
We will be red today because of people like you who can't see that KAVL would have a hard time holding up on the OTCs. You know why we can't hold above $3? It's because we have too many retail traders up 100-1000%. We don't have enough retail buyers to offset those that want to lock in profits, thus we see a drop in price, and then we see panic from those who don't know what they own.
We saw the drop from $1.00 to $0.30 and how many were butthurt by it? It made no sense, and again it's because liquidity was minimal.
Thank you!
The r/s will only affect us short term because retail will panic as they always do. As seen by the comments here and on stocktwits, it's clear to me no one has a bigger picture view and are stuck with penny stock mentality.
For those of us that have a lot of shares, where are we going to find someone to buy millions of dollars worth of shares at higher price points? Retail doesn't have the money to sustain that. Hence why we need to shift to an exchange that can sustain it.
Your opinion is skewed by the price limitations of OTC stocks, and not at all based on reality.
KAVL going to $50 on the OTC is not realistic, KAVL going to $50 on the nasdaq is no big deal.
At the end of the day, if kavl does a 1:5, and we are priced around $5, you need a $15 price to get back to $3 pre split. The $15 price point will be a similar valuation as the $3 price point, so nothing changed.
This isn't a 1:1000 r/s where you now need a $500 share price to breakeven. It's just enough to get us over the threshold and onto an exchange that will provide a company generating $100m in annual revenue the eyes and liquidity it deserves.
Cause the critism is way over the top.
How can everyone see the future in KAVL yet complain when they take steps to get the company the eyes it deserves. We won't have the liquidity or the investment world behind us on the OTCs and the company is fixing that. The reverse split has no bearing on the financials nor market valuation (other than being in the calculation)
Good luck with your trading.
Thought you were a long hauler a year ago, or did you recently buy back in?
Not trusting management, I guess you have low standards for investing. Good luck to you.
OTC is mostly retail, so you are limiting your upside being on an exchange that doesn't allow institutions and mutual funds to buy.
You know, the companies that can throw around a few million dollars like its nothing.
The facts that matters: KAVL generated $100M revenue in 12 months. They expect $400M in the next 12 months, they expect a new product, they expect additional distributors.
If you were looking for a quick flip, sorry, not sorry.
HGEN is another one that went from OTC to Nasdaq and performed well even after additional rounds of funding.
Find me another otc to nasd stock that generated $100M in revenue in the last 12 months.
Thanks for your opinion, but let's not pretend you've seen anything like KAVL on the OTC before.
If you honestly think this goes to .30 by end of week, your losing your mind. At .30 this company is valued at $84M.
I have high confidence we'll be red tomorrow and that's because OTC = retail, and retail is way too emotional.
I'm buying more, just gotta see where people throw in the towel. In a few months those that sold will be kicking themselves.
If KAVL is worth $1B with a 282M O/S, it'll be worth $1B on a 50M O/S, and it'll be worth $1B on a 750M O/S.
Value is in the financials.
What do you want to hear that I haven't already posted?
$20 for a NASD stock is nothing. You need to separate KAVL from the OTC. A $20 OTC stock is unreasonable, a $20 NASD stock is normal. The liquidity currently is terrible, hence why it was so easy for the share price to drop from over $3.00 on a few million shares.
Look at the total market valuation. Right now we're trading at sub $400M market valuation. If you think we're worth $1B, then with the current O/S we should be trading at $3.53.
If we do a reverse split, where 5 shares become 1 share, then that $1B valuation is now a $17.68 share price. So if you had 1000 shares at $1.40, after the reverse split you'll have 200 shares at $7.
So if the stock went to $17.68, it would just be like it went to $3.53 with the higher O/S.
The reverse split has NO bearing on the valuation of the company, only the financials. So if the financials only get better (which why won't they?), the R/S will not matter. It will just increase the share price, allow us to trade on the NASD, and then allow institutional investors to buy into a company generating $400M for 2021.
TLDR: The R/S may have a negative impact due to emotional traders, but buy the cheapies and thank me in a few months.
Once again man, your OTC focus and experience isn't going to fair well with this R/S and up-list.
Look at examples and gain an understanding. Yes the unrestricted went from 32M to 53M while the O/S didn't increase nearly the same percent.
Look at HGEN, a great recent example. Between Jan 2020 through June 2020, they DOUBLED their O/S.
They did their R/S, they did their offering (to institutions, not stinky pink "institutions") and they are now trading 3x higher than the day they reversed.
Keep in mind HGEN is a biotech company, which has minimal revenues. KAVL has revenues and KAVL has profits. KAVL also is expecting 4x revenues year over year. We buy that patent and have another product under our belt, what's that mean for 2022? What if MJ is legalized? With our ever growing distribution network, we'll be able to get products into stores incredibly quick.
Again, look at the big picture, not the next 1 or 2 weeks. KAVL needs this liquidity boost, KAVL needs these new eyes/investors, and KAVL will thrive on NASD.
I would love to buy your shares at .30 tomorrow lol.
Who was the one who kept posting about short term nonsense back in the .30s and .40s while more than half the board was moaning and groaning, complaining and whining about how it's stupid and how the company doesn't care about shareholders, etc. I was trying to keep you guys on the straight and narrow, and I bought more that whole time.
You are confused with the R/S and I don't blame you. 99% of the time an R/S is bad in the OTCs but I recommend you do some research on stocks that have reverse split to get onto NASD.
I provided you a great example and proved the additional liquidity despite a lower O/S after the R/S. If you prefer to believe you're getting scammed, then, be sure to sell out tomorrow.
Another one who has no idea what they are talking about.
You guys acknowledge the upside potential of KAVL, but fail to realize that the potential doesn't live on the OTC.
Our valuation won't get to where we want without institutions. Sure, maybe we can hit $4, but there is no liquidity up there because it's retail battling retail, and retail has proven over and over it has no idea how to trade.
A few hundred thousand shares at $2 and we fall like a knife, if you prefer that, then I'm sure we can find you another OTC stock in the $2 range with no liquidity, but they won't have anywhere near the revenue potential of KAVL.
Go take a walk and clear your head. You clearly have no idea what a move to NASD would mean for us.
I am holding all and will buy even more between tomorrow and up listing. Read back a few posts to get a better understanding.
You want to see NASD liquidity?
The arrow on the big green candle is HGEN's first day on the NASD. The black line to the left of the arrow is the average volume pre-split and pre NASD. Look at the explosion in volume. That's what happens when you have institutions interested in your stock. They did an R/S, so fewer shares and still so much more volume.
I'm very surprised, and somewhat disappointed by a lot of you on this board.
KAVL isn't your typical stinky pink and they have dangled nothing over our eyes, yet people here can't seem to understand what is going on. OTC stocks are where retail traders hang out, and as we see across this website, most retail traders/investors 1) don't know a good company from bad and 2) mostly lose money trying to catch the next big 10,000% gainer not realizing that those gains come from finding the diamond in the rough. We are crazy undervalued because of this exchange and the market participants and I thought most of you understood that.
Information about companies in the OTC market is less available than it is for issuers that are listed on a national securities exchange. Yet, OTC securities, which include securities referred to as “penny stocks,” are primarily owned by retail investors
https://www.sec.gov/news/public-statement/clayton-otc-2020-09-16
KAVL is the diamond in the rough, generating $100,000,000 in revenue in 1 year. GUYS, 100 MILLION DOLLARS IN REVENUE. Not only that, but they are anticipating 4x that in the next year. 400 MILLION DOLLARS IN REVENUE.
Tomorrow most likely will be red, and again, that's because retail doesn't know the difference between a good company and a bad company and will just chase the next best thing. The Nasdaq will give us the institutional eyes we deserve.
You want proof of what happens when you get to NASD?
https://fintel.io/so/us/hgen
Look at the institutional ownership of HGEN after they performed a reverse split to list on the NASD. That's right, mutual funds, Vanguard, Blackrock, Citadel, hedge funds all picked up shares of them. Not a few grand, but millions of dollars worth.
You want to sit on the OTC and deal with retail who doesn't know what they own or do you want to be listed on an exchange that mutual funds can invest in?
Stop looking at KAVL as an OTC stock, and rather a real company trying to be discovered by real $$. I for one will pick up as much as I can over the coming weeks, because once we're on Nasd, we're going to see more liquidity. Look at HGEN chart starting September 19, 2020. Look at that volume, look at the liquidity. That is what KAVL deserves.
I suspect you've never been in a real company before. The whole point of the R/S, and the additional MM, and the independent directors, and the shareholder count, etc was to list on the Nasdaq. But I recommend you email the below and tell them how you feel...
investors@kaivalbrands.com, stephen@inflectionpartnersllc.com
This could be a great opportunity for us longs to pick up even more shares.
At the end of the day, the valuation is the only thing that matters and if we're currently trading at only 1x annual revenues, with an anticipated 4x growth year over year, then anything below current price is ridiculously undervalued. That's regardless of an R/S, or organic uplist.
I prefer NASD, and if that means a small R/S, so be it.
At the end of the day, the valuation is the only thing that matters. I anticipate selling tomorrow and I'll be sure to buy the blood because todays valuation, imo, does not match the current and future reality of the company.
Reach out to IR and tell them what you think.
investors@kaivalbrands.com
stephen@inflectionpartnersllc.com
VERB is a completely different story.
They lose millions every quarter and their revenue is not growing the way KAVL's is.
If the company was growing and turning a profit then it would be valued higher. That's why it's struggling.
Give me an example.
HGEN had to do an R/S to get on the NASD and get their funding. They are trading 3x since the R/S with no revenues.
I think there is something waiting for us when we get on the NASD.
That's where the institutional whales are waiting.
RLX is trading at 28x their 2020 revenue and they weren't even profitable.
What happens if a big fund wants to add 500k shares of KAVL to their small/micro cap portfolio. What happens if people follow that funds buys/sells, what happens if multiple institutions starting taking positions in KAVL and we get analyst coverage?
We get none of this on the OTC. No one takes an OTC company seriously.
Have you been through an R/S of a real company, with real products, real revenue, etc?
Man, you really did a 180 on KAVL. The plan has always been to get on Nasdaq.
Is the plan to get on Nasdaq so they can screw shareholders? What's the point of that. Why didn't they just stay private and keep all that money themselves?
Have some faith in the management that has gotten us this far. Management that turned a company doing $0 revenue, into generating $100M in it's first year, and expecting 4x that for 2021.
New product launch in Feb, new distributors launched in Feb, etc.
Why would we be hit with an offering after a short squeeze?
Someone said with a low float, MMs will short it to nothing. I feel we're already undervalued, so if MMs were to short this, and then the company posts their $400M revenue year, there would be a squeeze.
The funding when we get on NASD (assuming that's the plan) will get us the eyes we need. Let the big institutional guys bring us to new highs.
Everyone needs to stop looking at this like an OTC scam. KAVL is profitable, has positive cash flow, has a huge distribution network, and if getting on the NASD provides us new connections to products/financing/eyes, then we should all be grateful.
If the split cuts the float down, the market cap doesn't change, so we're still undervalued. Assuming the $400M, we're still at a 1x revenue multiple .
I disagree.
If anything, I could see a massive short squeeze if MMs try to short. You post financials showing $400M in revenue for the year, MMs will have to scramble to buy shares.