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Do you say that because of the posts on this stock board?
Or because they are filing late?
If you take out all the rhetoric on this board you have the following:
2 revenue shops selling legal high quality cannabis.
1 grow facility that is able to produce great quality from seed.
Our foot in the door of a high demand - high margin industry that is totally vertical. A
A good revenue stream with way too much current overhead.....
They will file.....A cash business like this with many variables must be a nightmare to account for.....
We shall see....
Craig did not work this hard for these years to end up with what he has right now. Way too much potential.....IMHO
10-4 I have been buying my regular amount every month. Keeping in mind this is a long term payback......
There has been a great deal of work put into this company. A grow facility and two retail shops. Plus a brand and new products. The move from bio-fuels has brought baggage that a start up would not normally have. However, this penny company has a revenue stream and should be able to be tracked by the filings on eps.
I am sure the CEO realizes his potential for great wealth is in the stock price going up - not down. If he milks it downward (which he could) it would be small change compared to a five year out-look.
So it all boils down to the CEO.
Do you trust him? or NOT!
Been away for a while, but still buying. This market is exploding and KAYS is structured to serve the customer. It will take time, but I love being in on the ground floor of this next "Amazon".
When Amazon was a couple of bucks a share, the same kind of dialogue was out there on them. Comes with the upstart territory.
See you at a dollar. (In a couple of years.)
Good find on the "Consultant". Coincides with the investors from the Cayman's. Of course the proof is in the numbers. Recent quarter sales,
recent quarter expenses, net profit, outstanding shares and growth plans.
The expense for consultants needs to be clarified.
If all of these items are positive, I think we have a real winner here.
I keep buying on the dips. Including today!
Competition! There will be more as we go down the road. Big business in this industry. Helps sharpen up the product and customer service if your want to survive.
Actually, they are probably sampling the new products that are producing and have found them to be really good
Eugene Site of Third Recreational Marijuana License Workshop
OLCC to Provide Overview of License Application Process
December 8, 2015
Portland, Oregon – The Oregon Liquor Control Commission will put on the third of seven workshops providing information about the OLCC Recreational Marijuana License program, Wednesday, December 9, 2015 at Lane Community College’s Center for Meeting and Learning in Eugene. The workshop, from 10 a.m. to 1 p.m. will include a review of the Temporary Rules regulating the Recreational Marijuana industry, an overview of the license application process, and a question and answer session. Previous workshops were held in Bend and Medford.
There is no charge for attending the workshop; no registration is required and seating is available on first-come basis. The workshop presentation is available on the OLCC website. Workshop attendees are encouraged to print the workshop presentation and the Recreational Marijuana Business Readiness Guidebook and bring with them.
A video version of the workshop will be available on the OLCC website the week of December 21, 2015.
The OLCC will start accepting license applications on January 4, 2016. Applicants will be able to utilize a dedicated website to apply for business licenses, interact with OLCC staff, and pay fees electronically. The OLCC will license producers, processors, wholesalers, retailers, labs and research (certificates).
Four additional workshops will be held in areas of the state where local government has not adopted ordinances prohibiting establishment of recreational marijuana licenses. Registration is not required, and seating will be on a first-come basis. The workshops will be held in the following cities:
Salem:
It's all an unknown. Just depends on who invested and their tax situation.
If they can handle a large gain in 2015, they will probably sell. If they want to roll the tax bill over to 2016 they will hold a while.
All of these issues are important for the near term. What is ever so important are the numbers. When will this company be self sustaining?
When will this company fall within a reasonable price to earnings.
It is ever so rare with a stinky pinky to actually have a viable product, revenues, growth, and a future.
We shall see!
There is another way to view these .03 shares. Obviously they were issued to raise cash. This is a risky investment. However, if these .03 holders really want make cash, they will wait (like me) until it is 1.00 a share or more. At that point what is the difference between a cost basis of .03 0r .09?
Not much!
Here is how I see it! (Take it for what it is worth.)
Dark Clouds:
1. This business is illegal from a Federal View. Lately it is being treated similar to immigration. Ignored! That can change with new politicians.
2. The infrastructure that is being built can ONLY be supported by multiple store fronts, products and revenue streams. In other words we are a couple of hamburger stands (so to speak) with a corporate structure for a dozen our so outlets.
------------------
Clear sky's:
1. Very High Margin products.
2. Incredible demand.
3. On the ground floor for multiple stores and states.
4. Good management team.
Anyone else have additional pros & cons?
I agree fully. Matter of fact, today could have been brutal. Expanding expense and debt. However, there is revenue and tangible accomplishment as a result of the debt. (Stores-Grow facility-product development)
The next quarter needs to be the turn around quarter. Reduced expenses and increased revenue. (Unless new stores go on-line.)
Revenues
We had revenues of $32,765 for the three months ended September 30, 2015 and revenues of $90,597 for the nine months ended September 30, 2015 compared to $36,978 for the three months ended September 30, 2014 and revenues of $36,978 for the nine months ended September 30, 2014. The significant increase in sales for the nine month period ending September 30, 2015 versus the same period in 2014 reflects the fact that there were no corresponding revenues for the first six months of 2014 as our dispensary did not open until July 3, 2014.
Selling, general and administrative expenses increased by $42,753 to $141,450 in the three months ended September 30, 2015 and decreased by $6,145 to $288,499 in nine months 2015 compared to the same period in 2014. The increase for the current three month period versus the same period in the prior year results from expenses associated the Company's launch of their second dispensary location in Salem, Oregon and expenses associated with preparing for the beginning of recreational marijuana sales commencing October 1, 2015.
Professional fee expense
Professional fees decreased by $141,447 to $124,050 in the third quarter of 2015 compared to the same period in 2014. The Company's initial entrance into the medical marijuana market in the prior year resulted in certain one-time expenses that were not necessary to repeat this year.
However, Professional fees increased by $173,007 to $734,260 in the nine months of 2015 compared to the same period in 2014. As previously reported the Company's expenses were substantially more compared to the same period the prior year, but these expenses were mostly stock issuances in the first quarter of 2015 (versus actual cash payments) to key management, consultants and professionals that were integral to the process of the company becoming the first fully reporting U.S. public company to actually own and operate a vertically integrated seed-to-sale legal marijuana enterprise in the United States
October 2015 The first thirty-one days of limited recreational marijuana sales
For the 15 month period that we have had our dispensary operations in Oregon (July 1, 2014 - September 30, 2015), Kaya Shack? sales to medical marijuana patients totaled approximately $170,000 (a monthly average of approximately $10,600). For the 1 month period of (October 2015) sales to both medical and recreational patients totaled $64,480, an increase of over 500%.
To be clear, this one month period included sales from our new South Salem Kaya Shack Marijuana Superstore in addition to our Portland location, but the Salem store opened October 17 and only contributed approximately $12,300 to this figure (note: the Salem opening was a "soft opening" and the various enhanced revenue aspects of the store have yet to be launched).
Accordingly, even though we are dealing with a very short snapshot of the recreational market, the 500%+ increase in total sales for the company and nearly 400% increase in same store revenues at our established Hawthorne location is consistent with our thesis that the recreational marijuana market is much more lucrative for the company than medical sales. Additionally, if you factor in the fact that the "limited recreational sales" are exactly that (limited to flower only and no more than 7 grams to any individual per day) we are confident that revenues will increase once the limits are increased and our recreational customers can purchase larger amounts of flower as well as buy extracts, concentrates and edibles.
Hello all!
Earlier I gave a heads up about the upcoming quarterly report possibly being brutal. It was just a warning and this is a reminder. This report will not have significant recreational revenue. So do not be alarmed and hit the sell button when you see it!
The next quarterly will be the one to watch......
This quarterly might present a buying op!
No, I do not think it will drop like a rock with a brutal Quarterly. I think the next quarterly will reveal the eps trend. In other words the next quarterly will be the window to look thru!
Heads up, this Quarterly will be brutal. There was a massive amount of expense opening the next store and getting ready for recreational. There was very little revenue from recreational in this quarter time period.
The next quarterly (in February) will be the report to show if revenue is increasing and cost are decreasing.
The we will either sky rocket or bust.....IMHO
Feds block push by Colorado to create pot bank.
DENVER (AP) — Colorado's attempt to create a bank to service its marijuana industry has suffered another setback by the federal government and could be facing an impossible dilemma.
The Federal Reserve — the guardian of the U.S. banking system — said in a court filing Wednesday that it doesn't intend to accept a penny connected to the sale of pot because the drug remains illegal under federal law.
The stance appears to mark a shift in the position of the federal government. Last year, the U.S. Treasury Department issued rules for how banks can accept pot money.
The filing came in a legal battle between the Federal Reserve and the would-be Fourth Corner Credit Union, which was set up last year to serve Colorado's $700 million-a-year marijuana industry.
The credit union can't open without clearance from the Federal Reserve, which said in its filing that "transporting or transmitting funds known to have derived from the distribution of marijuana is illegal."
Colorado chartered the Fourth Corner Credit Union after the Treasury Department issued its guidance last year on marijuana banking. Fourth Corner was designed to give the industry in Colorado a safe place to bank while paying steep fees to account for all the hoops set up by the Treasury Department.
The credit union then needed permission from the Federal Reserve to access the national banking system and perform electronic transactions. No dice.
The credit union now wants a federal judge to step in and order the Federal Reserve to change its mind.
Pretty complicated for two stores and a grow facility!
Once this mystery is solved it will either help or hurt my desire to go any deeper on KAYS. I ran into this sort of thing with Mark Cuban and Charter.
He made out like a bandit and the shareholders got screwed with reverse splits...
KAYS has a solid foundation.
It's the convertible debt that will hold the price down.
Dept is one thing, convertible is another.
But in any business, as long as you have cash flow increasing and
expenses per transaction getting smaller; YOU HAVE A WINNER.
IMHO, buy on dips but don't expect 1.00 pps for a couple of years!
With the next few quarterly (Q's) we will see how much $$$.
It is going to be an up hill battle to pay down the dollars spent
to get up and running. But in a couple of years we should see a
1.00 pps.
Some reports in the news:
http://www.bendbulletin.com/localstate/marijuana/3571203-151/marijuana-sale-frenzy-over-the-weekend#
One location did 55,000 in a day. If we get anything like that the future Q reports will show a turn around. At that point it will go Up-Up-Up!
It might double for a day or two.
The market is driven by $$$. This is the key to any success.
So far between stock issuance and borrowed money we have borrowed
over two million dollars for ???
What will the return be?
Only the Q's can tell
10-Q was brutal! The next one will probably be much worse with the build out expenses. October-November-December should be the turn around months.
In business ALWAYS!
1. Reduce expenses.
2. Increase revenue.
I am way behind you on shares, but am on the same page.....
To me, the key is getting "The KAYA Shack" brand established.
In other words, marketing!
And in that marketing (somehow) presenting KAYS as a long term investment.
I had mentioned before about marketing to customers and the local market we are in about the investment opportunity. This might influence consumer purchases. What was legals response on that?
Also, as stated by you, "I realize it is unconventional."This was in reference to you fielding questions on a public stock board. Why not use this same unconventional approach and do a "Road Show" at the grass roots level. Get someone in a community (friends-family-share holder) to set up a meeting and invite local press and potential investors. You might get picked up by an affiliate for a "national weed series".
Exciting times......
And remember, at these prices you will always have flippers.
They do add up. They add up to a loss per share....Right now around .03 per share. They must increase revenue with good margins. I do not know the overall margins for the industry since there aren't any publicly traded company's except KAYS.......
We shall see!!!
When it is all said and done, what matters is the bottom line. And the bottom line is a very simple formula.
Sales - expenses = profit.....(What are the margins?!?!)
Then how large is the market for this product and what growth rate can we achieve?
From that you get the PE - price to earnings....
For a high growth company this could be a multiple of 35.....
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Right now we have earnings - Yea!
We have growth - Yea!
But no profit. The expenses far out way the earnings.....BUT,
we have a very large potential and that is what we are investing in.
I do not see 1.00 a share until we turn a profit.
But after a profit, there is no looking back.
Buy and hold for 36 months and you will do well....IMHO
Thank you for keeping us informed on these matters. Much appreciated.
Have you considered roadshow presentations?
Folks in those cities will have to drive to make their purchases -
legally
Any dip is a buying opportunity.
Think chain of stores in multiple states in 10 years.....
Exactly! And that is why this PPS is sub-dime. However, CEO C. Frank has put many variables together in short period of time. We (share holders) are paying him for what this can become and not for what it is.
So much of boils down to investing in Craig Frank; his leadership, honesty, vision and ability. So far, I am on board with a three year horizon.
But there is great risk/reward here...That's for sure!!!
KAYS is in a new investing frontier. We do not know:
What the proper multiple should be? (Like a tech or bio?!?!)
What the FEDs will do....?
What margins they will run?
What is the growth rate?
Exciting times for those with guts....
The trades were on the bid, not ask most of the session. This is considered a sell side day. (Down in PPS).
Bid sell off day in KAYS or management getting money for the weekend.
Thanks for keeping us informed on the new store.
Please keep the progress information coming in....
Keep things in perspective:
I worked for a company that was losing 2 million and month and the Chairman and CEO was making 250,000 a year plus stock options. This went on for several years! By the way, the company was Federal Express and the CEO was Fred Smith.
It is going to take many more individual share holders to move the pps.
Probably 10 times what we have now just to get it to triple.
It can and will make good $$$. With our own 6000 sq ft grow facility and at least two outlets, a good foundation has been built.
Maddstacker please speak for yourself. I am a serious long term investor and need all the information sources. If someone does not like the company why waist time.
This industry has an almost unlimited potential and so far KAYS is moving toward the goal. The CEO is building a team and keeping the ball moving.
Nice....Keep up the good work.
Thank you for fielding our questions.