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Streaming Event / Conference Call a Sign of Confidence
American Green would not be hosting a simulcast streaming event if the company was not confident of operational plans. Nor would Stephen host a conference call if he was not confidently representing ERBB.
This is a historic time for cannabis. American Green is uniquely position to capitalize and management is making strides to establish strong brands like Zazzz, Jurassic Water Systems and OneBode.
I Wonder...Oh How I Wonder
How many of those anti-MJ politicians take money from pharmaceutical, liquor and law enforcement lobbies? It would be interesting to find out those facts.
ERBB will succeed with or without full legalization. California alone could be an absolute goldmine along with that other recreational legal juggernaut, Colorado.
Congress is so out of touch with reality it's is truly sickening. Fire those old windbags already.
Agreed Malvern, Chart is Looking Good
Now would be a good time to buy. Indicators are moving up, MACD headed in the right direction. My only concern is the death cross.
http://stockcharts.com/h-sc/ui?s=VAPE&p=D&yr=0&mn=4&dy=0&id=p09165421427
Zen Healing in West Hollywood Has Generic Machines
Zen Healing, a dispensary in Los Angeles has 2 machines. Five years ago the dispensary had only one machine but due to popularity, they installed a second one.
The machine are nothing special, just the typical coil-release, alphanumerical keypad vending machine but they are well used. The machine dispenses gram sized canister, prerolled joints, MJ candies and other small items.
Not only are machines in use, the machines are incredibly popular and effective at expediting customers needs.
American Green's machine is far more sophisticated and every dispensary should have one. With about 2000 dispensaries in California alone, Zazzz could be a juggernaut. Oh, and I have visited numerous dispensaries in the LA are, not once have I ever seen a MD8X unit.
Thanks Dadx4, Have a Great Weekend!
And if he's here, thanks to ismellcrickets for sticking a post of mine on another board where I can only post once a day.
Go VAPE. I'm excited to try their products!
Mods Please Stickie Zippo's Post
Extremely relevant VAPE info enclosed in the post I am replying to.
Here's the post I'm requesting to have stickied:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=102431393
Ok, Now I'm Impressed - Great News!
http://www.vapeholdings.com/ceo-letter-to-shareholders.html
An extremely well written and thorough addressing of many operational issues. Many here have been saying the same thing but the message has a bigger impact coming directly from the company.
My 1.25 target may never be seen. I don't know if VAPE is out of the woods yet, but the letter to shareholders is a solid move instead of a watery PR.
Tuesday should be fun and let's hope this is sparks a run into Washington legalization.
Have a great long weekend!
Still Here, Still Not Impressed
So far the only rallies have been dead cat bounces and this one is likely short covering as those late shorts around the 5 range don't want to risk holding over the weekend.
I would have love to grabbed some shares today but I got a solid amount in the low 2s and will not buy unless this dips below the 1.25 target.
When VAPE was at 5 I was called a fool for suggesting the share price could dip to 1.25. After today's low nearly hit that mark, VAPE is still way closer to 1.25 than 5 or 4 or 3 and just barely even at 2.
Latest Zazzz Vending Machine News as of 5/21
Below are the latest PRs regarding the progress of the American Green Zazzz vending machines.
The first PR states the machines are manufactured and are en route to the four dispensaries. The PR also states they will be operational on June 12 at which time American Green will be doing a streamcast for each location. Interestingly, there is a mention that Zazzz machines may be in use prior to the June 12 event. There is also a scheduled conference call to provide more insight into the many facets of American Green.
The second PR announces a partnership with a display software company providing the technology for the displays above the Zazzz machines, similar to the screens above gas station pumps in some cities.
These are enormous developments for American Green. This is execution on business prospects that lead many of us commit money to ERBB. Very exciting!
5/21 - Four Machine Placed in 3 Different States, Simulcast Media Event for Launch, Company Conference Call
http://ih.advfn.com/p.php?pid=nmona&article=62286320
5/23 - Ad Space Liason for Zazzz Machine Displays
http://ih.advfn.com/p.php?pid=nmona&article=62319630&symbol=ERBB
Yup Ain't No Stopping This Now
That's why I'm waiting to buy. However after trying to contact the company several times via phone and email, I still have not received a response. I live in LA and would love to visit the HQ. that has me a little spooked.
That 1.25 seems inevitable. I posted about the death cross the other day. The 50/200 EMAs have already flashed the death cross so it's probably not long before the true SMA Death Cross is executed.
The Death and Golden Crosses are the most accurate technical indicators I have ever known. Many MJ stocks flashed Golden Cross prior to the massive Q1 bull charge. A few years back I play @APL for over 130pps on the short side after a Death Cross.
VAPE is toast for now. Of course here in the penny world a good PR can change the game but any technical trader would tell you to stay away.
Thanks, I Don't Buy Just Cause It's Cheap
That's how folks get burned by throwing good money after bad. Maybe that's your plan after touting VAPE in the high 30s but I prefer logic and reason. "Cheap" is a relative term, relative only to the fact VAPE was once at 40.
I'll wait to complete my buying because my gut tells me VAPE will get cheaper kind of like when it was at 5 and you called me an idiot for suggesting the share price might dip to 1.25.
Earnings Are Questionable in Some Companies
There is another company (STeeKayOh) that reports an insane earning number, about 5x their actual market cap yet the stock is completely stagnant because they haven't been able to "collect."
Earnings like that are a joke and I think that's what people are seeing here with VAPE. They're not buying the numbers, literally as in not buying the stock because they don't believe the earnings numbers.
Like I said, I'm at a loss here, both in my recent purchases and as to why VAPE just continues to hit the skids. The big problem is that after the insane parabolic rise in the MJ markets, there really are no confirmed support levels, especially long term.
It's likely there will be a technical bounce because VAPE is riding the bottom bollinger bands, deviating heavily from a normal range. Most indicators are at the very lowest levels but the MACD is rebounding. Unfortunately the 50/200 SMA are slumping into what may become a Death Cross and using the 50/200 EMA that cross is happening already.
Greed, Ignorance, Locked Shares
There are a wide variety of reasons. It's not just insiders but any debenture payments, ie Hive folks who were paid in shares. A lot of those holders are probably not too market savvy, holding at the highs thinking they will be the next Zuckerbergs. They may peel off a little in the double digits as VAPE drops but when it plummets, they panic and want to make sure they at least get something in case the worst happens.
This is a fire sale. It does not make much sense. Even if it was insiders selling and to go so far as to assume they are selling because of bad business, they would be in so much legal trouble that any dime they got to use would be put towards legal counsel.
I'm at a loss but I have committed to establishing a position in VAPE so I've nibbled a little today. I'm waiting to see if I can get 1pps before I start hammering
Still Doubting the 1.25?
I'm getting ready to buy some more but only with some purely speculative cash. This stock is in sick bay and may not recover.
Short Covering Rally? I Doubt It
From 40 down to below 2 and you don't think most shorts have already covered for profit? Anyone short above 10 would be a fool to have not covered by now. Those short just above 5 would be equally as foolish to be holding for a few more greedy pennies.
Sorry folks but the shorts aren't what's stinking up the joint.
Those insiders issued shares at pennies are probably a large chunk of the selling. Plus some weak handed flippers and day players who dump after small losses.
VAPE is another 420Investor FAIL. Bunch of suckers buying into the same poor analysis that had them buying PH*T and CAN^
Bigger than Apple?
No chance ERBB will ever command the market cap of that company. That company is drastically undervalued even today and so is ERBB but there is not way American Green will ever generate nearly $50b in pure profit per year.
I'd put ERBB's market cap around $500m for now if my revenue projections play out. Here are some numbers I am working with;
There are about 2500 MJ dispensaries in California. That state alone could be a juggernaut for Zazzz with machine placements in the multi-hundreds, even thousands. Colorado is not far behind with about 1000 medical and recreational shops. There is also Oregon, Washington and about 20 other states with cannabis reform, all potential locations for Zazzz. After the November 2014 midterm elections as many as 13 new states could pass medical or even full recreational legalization measures for a grand total of 35 states. That potentially triples the market size for Zazzz and it still only 2/3 of the country! Oh wait, but that's only 1 country. There are numerous other countries with cannabis reform. The market here is barely in its inception. Who knows how big the market is for marijuana vending machine but the Zazzz machine is the front runner here.
But the real sleeper here could be the Jurassic Water Systems. As detailed above, the domestic US cannabis market is blooming and booming. The worldwide market is also growing. The JWS could be the real diamond in the rough. While everyone concentrates on the "crazy idea" of buying cannabis from a vending machine (been doing it for years in CA and not the MD8X kind), many have forgotten that there is enormous profit to be made long before the products make it to retail buyers. Growers are making fortunes today. These aren't little closet grows or a few plants next to the tomatoes in the backyard garden. I'm talking about 30,000 square foot grows. These sophisticated operations will be looking to maximize yield and in turn profits while minimizing costs of growing.
Another residual effect of all this is OneBode products. These nutritional products could be sold in Zazzz, exposing OneBode to a whole new market. Heck, I'm ready to place an order for some OneBode products but I keep fit naturally and stopped doing supplements when awoke from my dreams of playing pro sports. Regardless, the supplement market is absolutely enormous. Even ridiculous items like 5-hour Energy sells hundreds of millions based less on results that upon marketing and store placement.
All that is worth about $500m to me. Realistically, when companies like HerbaLife were valued at $20b and ERBB comps like MD8X were valued near $500m-1b, there is no reason ERBB couldn't reach much higher.
This is all my opinion and all is contingent upon a well managed rollout of Zazzz. There have been some stumbles recently but Shearin seems to have take charge and seriously applied himself as Chief Operations Officer.
What Happened to the SKTO/AEGY Merger?
I thought it was supposed to happen within a month after the PR? Seriously how has SKTO not been halted yet? I'm sorry, I'm all for the MJ sector. I also live in LA and delivery services are everywhere so the money is flowing.
The earnings reports are even more insane; $50m in revenue, only $250k "collected". Either the market cap is way off or this company is a total sham.
Sorry guys, I'm a bag holder here. My position is paid for but I'm getting itchy to dump even though my cost basis is below .01.
Good luck folks but don't get too attached here. And by all means if I'm totally wrong, kick my pants across this board.
Volume Speaks Volumes
The enormous volume is all I need to know that this is pure accumulation. American Green is now making large steps towards legitimacy and in turn will be making leaps towards profits. Investors want in and I can tell you from personal knowledge, these are not small fish.
Right now it seems the 200EMA (not SMA) is resistance. Once that level falls, we could see blue skies.
That's my 1 post for the day.
Dropping the HAMMER - Now It Gets Serious
I've been picking up a few shares here and there as ERBB hits the skids, but ow that it has dipped under .02, I am buying en masse. 585,000 shares today. I'm looking to get 2 million here at these levels:
.015 gap from a few months back should fill which flashes a positive technical indicator. If ERBB gets below .015 I may just step in for about 5m shares.
.0195 was a previous high from about 1.5 years ago.
There is just too much going for this company. Of course the SEC stuff is freaking people out, myself included. With the exception of S!RI and FNM@, I have never purchased a sub $1 stock but I have held @APL through 70% downswings so I'm not a chicken. Yet having the SEC vultures circling the sector is no fun.
Regardless American Green is an ass kicking company. From my dialogues with Shearin, I'm really impressed how he is handling his business. The Zazzz rollout has definitely stumbled due to the software/hardware snafus but I agree that getting the machine out by 4/20 brought on a lot of media interest. It sucks that the interest was not met with a working product.
The Jurassic Water System is fascinating. For anyone with growing knowledge, the pictures of the root systems that were posted on FaceBook are telling. To the layman he pics mean nothing, but the extensive root system and light colored roots show healthy growth. The stalk is thick and strong. As a former grower, the JWS would certainly be something I would purchase to maximize yield, especially in a small space.
That's my post for the day from iHub jail. I'm off to the golf course again.
That Was An Absolute Riot
I've seen better reporting and production value in high school "news" reports. First of all, the set light technician/gaffer should be fired. As if the "reporters" skin tones weren't bad enough, the head shadows on the people's chest are an amateur light faux paus.
The analysis was completely rudimentary. Did they not even call ERBB for a statement or interview? Shearin is a very accessible COO and would have probably been more than happy to give them official insight regarding some of those matters. Many of us have shared email or phone conversations with Stephen. It is my understanding that the Zazzz machine isn't so much delayed as it is in beta testing (mentioned numerous times on various outlets by Stephen himself that there was 4-6 weeks of testing) and right now the hold up is a faceplate that needs tweaking before a massive rollout can begin.
The brief mention of the Jurassic Waters System was completely devoid of information except for a few sales figures. Again how about contacting Stephen to get a formal statement or to ask about the progress of existing test grows? Sure we don't know how payment for these devices is being handled but that's how start up businesses work; they cut deals and do what they have to do to make it happen. Trust me, I have financed a few creative ventures in my time and money flows in many ways.
Zero mention of OneBode. Zero mention of Amercian Green. Zero mention of the Americangreenzine website. All information readily available when that bit was posted on April 30.
No wonder this industry is having a hard time being taken seriously. Even in an attempt to create legitimate looks amateurish.
$15-20 End of Month
Marked. Copy that.
LoanStew All Valid Points
I'm pretty convinced SKTO is a scam. I don't use that term lightly and have even made profits here but it's just too much.
SKTO reports 10s of millions in "contracts" and "revenues" yet they can't collect? Seriously? Do you have any idea how many lawyers would be knocking on SK3's door to represent them on a contingency basis? Lawyers would be thrilled to forego hourly/retainer fees for a chance to collect between 30-45% of that kind of settlement. Alas, I'm sure most lawyers look at it this way:
1. The revenues are totally bogus
2. The contracts are totally bogus, therefore back to point 1
3. SK3 itself is a scam, so any legal action would so gross maladies
Sorry folks, that's just how I see it. If the lawyers aren't all over the millions in uncollected revenue, that's a pretty telling caveat. SK3 management has been too quiet, almost as if they know what's coming and if they open their mouths, anything they say can and will be used against them in a court of law
Low Volumes Across the Board
By now most short players have covered. After the steep drop over the past few weeks shorts would be foolishly greedy to keep positions open. Anyone shorting now is a gambler or late to the game.
The massive selling that was the real cause of pps declines has likely slowed as well since most buyers of the recent highs have been shaken out. What's left are folks looking for good entries and stalwart longs who have ridiculously low cost basis.
I've established a new postiton in VAPE between 2.7-4.0
Holding erbb, trtc, MJNA, skto, latf.
Washington coming on line. Earnings trickling in. Acquisitions, mergers and partnerships, oh my. Things could heat up again for the summer.
VAPE: Double Bottom at 2.60 / 2.67
http://stockcharts.com/h-sc/ui?s=VAPE&p=D&yr=0&mn=4&dy=0&id=p78823523656
Hey folks,
This is my first post here after being introduced by the benevolent Doc K. Here are my positions:
Long ERBB, MJNA, TRTC, VAPE, LATF, SKTO
After pouring over some charts this morning I came across a double bottom in VAPE. I'm assuming everyone knows what a double bottom indicates. The first low of the DB is at 2.60 followed by the second low at 2.67. VAPE is currently at the breakout level of the DB.
My biggest concern is the 1.25 gap from the November 2013 bounce but I like the technical setup for VAPE right now.
VAPE: Double Bottom at 2.60 / 2.67
http://stockcharts.com/h-sc/ui?s=VAPE&p=D&yr=0&mn=4&dy=0&id=p78823523656
Call me crazy but VAPE may have just bounced off a near perfectly executed double bottom with the first low at 2.60 and the second low at 2.67. For those who do not know, a Double Bottom is a bullish pattern. The pattern is in tact when the second low does not breach the first low. The first low indicates panic selling, the second low indicates indecision but less frenzied than the first low, giving way to traders/investors pouring back in because they regretted selling. From there the stock should have a decent run up.
Nice Day on the Charts for VAPE
http://stockcharts.com/h-sc/ui?s=VAPE&p=D&yr=0&mn=4&dy=0&id=p02481615398
Nice long white candlestick today. If only VAPE dipped a little further, the candlestick would have been a monstrous bullish englufer. Today looked like a short covering session at the EOD but not much accumulation. Ideally, it would be nice to have a healthy short volume going into earnings followed by a strong report because short covering would add fuel to the fire.
Either way, a solid earnings report could really knock VAPE out of the park. I would guess the presence at the 420 Festival in Denver may bring some windfall profits. The Washington legalization could also provide a gust of momentum but VAPE can stand alone wether MJ is legal or not.
Good times ahead hopefully.
Got VAPE?
Clearly Those Numbers Are a Joke
Nobody believes SKTO's numbers. The fact that they have been unable to collect more than 1% of revenue is also a joke. The earnings SKTO is reporting are 2-3x the company's entire market cap! So what are we to believe;
They can't collect the revenue because it may be illegal?
They will wait to collect and send a $xx million bill to the companies?
I hate to say it but I think SKTO is the first scam MJ stock I got into. I'm holding some paid for shares leftover from establishing a position at .007 but I'm pretty close to dumping those.
How is PharmaJanes working anyway? I live in LA, doubt I'll ever use the service since it doesn't do my area code, 90210 but I'd love to hear some feedback regarding the supposed operations.
Remember November and December 2013
For those lucky enough to get into the MJ market prior to Jan 1, 2014, you probably remember how awful the market was prior to the explosion. Most of the MJ stocks were at multi-year lows in November and December of 2013. In fact it was so bad the leading cannabis market "analyst" made the call to get out of MJ stocks until after the new year.
Unfortunately, that call ended up being a disaster, causing the lost opportunity of a lifetime for those who took the advice to stay out of the MJ market prior to Jan 2014.
Today we may have the same deal setting up. The 2 months leading up to Washington's legalization have been horrendous for the MJ markets, dropping most MJ equities by 50-90%.
I'm not saying a spike is inevitable and history tells us the MJ market is likely to keep falling for the rest of the year as it has done for the past few years, but for those who believe in the potential of this industry, now is as good as a time than any to start buying.
Disclosure
I have been setting up a new position in VAPE between 2.7-4.5 and added to my ERBB position at .029-.034. I am long MJNA, VAPE, ERBB, LATF, SKTO and TRTC.
ERBB This Week
I expect to get some news regarding the release of the Zazzz branded atomizer pens American a Green was developing with The Vapor Group. There is an image of the cases posted a few weeks back on the American__Green Twitter page.
Also the countdown approaches for full operational use on the Herbal Elements Zazzz vending machine. Along the same lines, I would expect when the PR is finally released confirming operational usage of the first Zazzz machine at HE there will be more developments about additional machine placements such as an update to the previous PR about more machine orders by a Denver based dispensary, Doctor's Orders.
Currently in Americangreenzine.com there is an article about Colorado pulling in over $4m in revenue from April, up significantly from prior months.
This industry is plowing through the BS. It seems the SEC and other groups are working hard to keep it down. Keep in mind cannabis has survived 80 years of institutional lies and propaganda. It will survive the latest nonsense. Let's not let the big corporations steal the industry. This is a chance for a small, domestic industry to spring forth and some of us will be along for the riches.
ERBB on!
Short Term Downtrend, Long Term Up Trend
You don't go from .001 to .03 in a "downtrend".
Judging ERBB based on the past few weeks is like predicting seasonal weather patterns based on one day's weather. It's like basing planetary environmental conditions using only a 10 year period. Sure in the 10,000 years since the last Ice Age the planet has been warming, after all something had to melt the ice that once covered North America down to Florida but overall in the past 4 billion years of existence, the earth has been cooling.
I've seen the same with many stocks. A@PL has experienced ups and down but overall it's been very rewarding as a shareholder
ERBB and the entire MJ market has been beat down. Is the bubble over? Hell no! It's only just begun. Did demand for cannabis fall of a cliff? Ha! Colorado just reported record cannabis tax revenues for April. $4 MILLION IN APRIL!!!!
http://justsaynow.firedoglake.com/2014/05/09/colorado-collects-over-4-million-last-month-in-marijuana-taxes/
The Revenues Just Keep Growing!
$4m in tax revenues in Colorado!
Unbelievable. Obviously April is a big month because of 420 but that's a 100% increase in taxes since January.
http://justsaynow.firedoglake.com/2014/05/09/colorado-collects-over-4-million-last-month-in-marijuana-taxes/
ERBB: 12 Months to Greener Fortune
American Green (AG), formerly known as Tranzbyte, is taking the steps necessary to build a business. Share price aside, AG has been executing goals that should drive the company to greener fortunes. Here are several factors that could have American Green on the path to profitability in 12 months or less.
1. Zazzz Brand
If you read any press about the marijuana (MJ) industry over the past month, chances are you have seen something about the Zazzz MJ vending machines. Since the April 12, 2014 release party in Avon, CO, the press has had a field day reporting about the Zazzz machine from CNN to CNBC to New York Times to every MJ blogger, analyst and everyday blazer. AG's COO Stephen Shearin has been the public face of the company and IMO he has done a great job representing the company. He has also refrained from overtly bringing attention to the fact AG is publicly traded as ERBB. Some have complained about the lack of ticker promotion but as a penny stock player, the restraint Shearin has shown is enough to convince me that he is playing this to the highest professional standards. As a shareholder and an fan of ethics, especially involving penny stocks, I applaud Shearin for his efforts.
But on to the numbers. According to an interview with Shearin (I don't remember the specific interview), Zazzz machines take about 9 months to pay themselves off, putting it in the black in 12 months. Shearin has said the manufacturer can crank out 17 machines per day and the company has a goal of 1000 machines in a years time. Clearly, that 1000 mark seems like a lofty goal but with as many as 35 states legal in some way by 2015 (13 new states with Nov 2014 initiatives/22 existing MMJ or RMJ legalization), that is actually only about 25 Zazzz machines per state. California alone has about 2000 dispensaries and it is ONLY a MEDICAL states. California alone could be worthy of 500 machines.
So what would it take to reach 1000 machines in multiple states? First and most obvious, state approval of vending machines. Colorado allows for such machines despite all the concerns of getting legal approval of Zazzz machines and so does California. In fact, several dispensaries in California already use traditional snack-coil-type machines. Secondly, to place 1000 machines would require some sort of sales force. Think of Xerox machines leased in offices; those units have salespeople who hit the streets getting contracts. That leads to a third necessity, a maintenance force. There are numerous other requirements to get 1000 Zazzz machines placement but those 3 issues are what I think are most important; State approval, sales force, maintenance force.
As of right now, a Zazzz machine has been placed for "beta" testing at Herbal Elements in Avon, CO. At the Zazzz release, COO Shearing stated the beta phase would last a month or so before full operation begins. Shareholders are anxiously waiting to hear about progress and the latest word is that a digital faceplate was being tweaked. Once the faceplate is finalized, the mass production phase can begin and Herbal Elements Zazzz will be operational. Once ready to go, another dispensary in CO called Doctor's Orders has placed an order(s) for Zazzz machines.
But Zazzz is not only limited to the machines. AG has developed a line of atomizer pens (vapor pens) with another publicly traded company, The Vapor Group. Shearin has stated numerous times that the atomizers should be ready for market any day not. The Zazzz vapor pens would be a perfect item to release for sale on their new website, americangreen.com.
2. Jurassic Water System
Jurassic Water System (JWS) is a cultivation system that assists in oxygenating water. For anyone with growing experience, especially with hydroponics, you know that regulating the oxygen levels in a plants water is an important part of growing. The results from the test grows using the Jurassic Water Systems have shown as much as 50% higher crop yields. Again, any grower knows higher yields bring higher profits. IMO smaller grows would be the ideal use for JWS because the yield would be enhance despite less room.
However, according to a recent PR, AG already has a purchase order from another major MJ firm in CO for 100 JWS worth $1.17m. Thats a heck of a start. Who knows how this system plays out but this could be a major, multi state money maker, possibly even becoming the real profit driver.
3. OneBode
OneBode is a nutritional supplement company. OneBode is also linked to NBA MVP and superstar Steve Nash. It is also reported that Steve Nash is an ERBB shareholder. Nutritional supplements are a $100b industry. There is potential for cross marketing with OneBode and Zazzz, possibly even selling OneBode products in Zazzz machines. That is a win-win for both products. Despite traditional stereotypes, cannabis users are not all Doritos eating couch potatoes as evidenced by the wide use of cannabis by professional athletes.
4. Americangreenzine.com and Americangreenclothing.com
With some work this site could be come a source of ad revenue. There is possibility to develop a community there similar to blogs and message boards. I don't see the site being the Google of weed sites, but there is a lot of potential for expansion. I also don't expect the clothing line to be a major revenue generator but the Zazzz atomizer pens could be sold directly on the site. Also, OneBode products could be sold on the sites.
5. American Green / USEI Grow Facility and Dispensary
There has been a recent PR about AG's joint venture with USE! in a commercial grow op and dispensary in Denver. USE! utilizes LED grow lights and the utility costs are substantially lower for indoor growing.(I know, I know! MH and HPS are the only good lights for indoor). In conjunction with AG's Jurassic Systems, the lower energy lighting and high yield cultivation systems could make for a monster grow. Some of the larger dispensaries in states like California generate about $25m in annual revenue.
BOTTOM LINE
American Green's journey into profitability begins at the operational level and Stephen Shearin, the Chief Operating Officer has brought a lot to the table. In the 2 years I have followed this company, never before have they had products, only promises. Today, American Green has numerous products from retail items to cultivation systems to distribution systems to informational systems. The profit potential is now coming from all angles of the marijuana industry and although the share price does not reflect the recent operational developments, if revenues start to be realized, ERBB could just be a big winner.
ERBB's americangreenzine.com Has Great Articles!
http://americangreenzine.com/zine/marijuana
This was one of my faves. I remember when these were just a rumor and now somebody gone done it.
http://americangreenzine.com/story/marijuana/cranfords-debuts-its-high-thc-machinerol/4554385252373230634146772b706f64544569474f513d3d
Have a great weekend everyone!
Solid Move By Management, Kudos to ERBB Crew
I don't think any of us expected this news to send ERBB back into blue sky territory. Nevertheless, I am more than pleased with the decision to change the corporate name to American Green while leaving the ticker symbol unchanged.
As a brand name, American Green is awesome. For me, it reaffirms my pride as an American, something that has been lost in the woods from 2000-2008. The name symbolizes being an American with the freedom to enjoy cannabis. But enough of the sentimental crap.
It would have been advantageous if the corporate name change in place before the Zazzz release because it may have directed more people to ERBB. Though some people here were upset that Stephen did not tie the ERBB stock to the Zazzz release during his numerous interviews, I commend him for keeping the focus on the Zazzz machine instead of using the interest to pump the stock. For an officer of a penny stock company, that reinforces my convictions that Stephen is earnestly trying to build a business/brand, not selling a scam stock. But enough of the bitching.
The website looks great to me. I've checked it on PC, iPad, and iPhone, easy navigation, great information.
American Green is on par with Medical Marijuana or GrowLife in the strength of the name. As silly as it seems, the revolution cap I received from my order has generated buzz amongst my interactions. I have had 2 separate people at Starbucks compliment the cap and ask me what American Green was. Yesterday on the golf course a guy we got paired up with asked me about it and I gave him the rundown on ERBB. Do not underestimate the value of a good name, especially when it comes to branding. Stocks like L@TF (Latteno Foods) or SKT0 (SK3 Group) make people question their involvement and commitment to cannabis. A name like American Green leaves little doubt of the company's operational M.O?
As we all knew, the name changes wouldn't impact the stock, but IMO it has a big impact on the brand. It also reinforces the company's commitment to the MJ market.
If anyone wants to read my opinion on what it will take to move the MJ markets, here is a post I wrote on another board:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=101732513
The board is called "MJ Stocks Analysis". It is a haven setup by Greens12 and needs more good followers so join in the fun.
That's my post for the day after day 20 in iHub jail.
What's It Gonna Take?
Earnings
Most of these MJ plays are barely in the inception stage and some like ERBB, SKTO, or LATF need proof of concept (vending machines, online MJ delivery services, and MMJ services respectively). Other companies like PHOT have real products that have existed for some time but their earnings need to reflect all the hype.
Institutional Investment / Venture Capital
ArcView and High Times fund bring a lot to the table but they can really only offer a liquidity injection. Goldman, Merrill and JP could bring hundreds of billions into the market.
Federal Reform / Rescheduling
Prohibition within the states is toppling like dominoes. There's no denying the success in Colorado. The tax revenues, new employment opportunity (therefore new income tax revs), revitalization of real estate....there's a lot at play for local communities. Rescheduling cannabis is not an if but a when. The federal government needs to get on board here and stop letting the tail wag the dog.
2014 Mid Term Elections
13 states have some form of legalization on their ballots. That would bring the total to 35. There's no doubt in my mind that cannabis will be a political talking point for elections. It probably won't be until 2016 it really heats up but 2014 should bring the issue to the national stage.
That is the four horsemen of the MJ market.
VAPE is Not a Good Short Candidate Anymore
At 20-40pps VAPE may have been a decent short target but anyone shorting here is a degenerate gambler. Sure, there is more profit to be had shorting VAPE at 3 opposed to other penny plays where the downside is mere pennies, requiring a risky amount of volume needed in the short position to generate worthwhile profits from the trade. However, like those other penny MJ plays, VAPE has a massive upside potential that could cause shorts to fall over each other in their efforts to cover.
In fact, if ever there was a dangerous MJ play to short VAPE would be it. The low float could make for a nightmare covering a short position. Also, with some good news or earnings, VAPE could double or even triple in a heartbeat. And let's not forget, we've all seen the 40+pps high.
I stand by my "observation" that 1.25 is in play here because of a sizeable gap up in Nov 2013. Despite that caveat, I would certainly not advocate shorting.
From what I can discern, as with most MJ equities, the short volume with VAPE is really non-existent. I posted a message on the ERB8 board regarding my thoughts on short players in the MJ markets. I just don't think they are much of a presence and it it's misguided to act like they are some sort of bogeyman causing sell offs.
MJ / otc stocks do not have derivatives so shorting is not only difficult to adequately manage the risk of the position, but it just isn't that profitable without doing so in dangerously high volumes. Most retail discount brokers like ETrade, Schwab and Ameritrade don't even allow for shorting penny stocks (or sub-$5 stocks).
What causes the sell offs are weakling flippers and psuedo investors who expect the stock to jump 1000% the day after they get in but when it moves 1% to the downside! those players dump and run. Also, MJ stocks get hyped and everyone starts chasing the momo but inexperienced players don't sell the rips and get trapped in the sell of, only to finally sell at the bottom.
Most significant is the cycle that the MJ equites have executed for the past 3 years, something I first started posted about in 2013 when I noticed it. In February 2012, CB!S went from .02 to .24 in about 2 months but then sold off by about 63% the rest of the year. In February 2013, MJN@ went from .02 to .50 in about 2 months but then sold off by about 63% the rest of the year.
Currently this sell off patter is reoccurring in 2014, exacerbated by the major bump from the Colorado legalization. Many stocks are up enormous amounts, from 500-5000% but they have now sold off according to the aforementioned cycle.
I'd like to see this cycle broken. With Washington legalization next month, mid-term elections in November and an acceptance level for MJ at new highs. Unfortunately, most of the inexperienced MJ market participants are now spooked. I've seen people on these boards go from total enthusiasts to relentless bashers because of the recent downtrend. The SEC action against several companies has spooked a lot of people, myself included.
But I'm not going to be chased out of the MJ market so others can steal shares. The conspiracy theorist in me wants to think there are reasons why the SEC / hedge fund cowboys are unfairly pumping the brakes to slow this industry before it becomes too large. The MJ market holds such vast potential, it dwarfs even the grandest aspirations. Medical applications of cannabis could generate $100s of billions, recreational application can and already does generate billions (legal or black market the demand is there) and the industrial application could be worth trillions from plastics, textile, fuels, food, opening a new commodity market........
Stop the madness already and let's get this thing started!
A Mouse Fart in a Tornado
Yeah it's a crude analogy but here a four application of it regarding ERBB;
1. Shorting penny stocks is not a crowded trade. Professional institutions do not trade penny stocks like ERBB. Maybe a few dark pools and boiler rooms, but big players like JPM or GS or ML still don't dabble in MJ penny plays. Additionally, most retail players don't have access to shorting penny stocks. Try it yourself with ETrade, Schwab, or ameritrade, most discount brokers don't allow it. In the one time I shorted MJN@ back in March 2013, ETrade wouldn't allow me to do so even with a substantial long position in MJN@ so I had to transfer the shares to my Merrill Lynch account to execute. It's not worth the hassle, nor is it worth the fees for a broker that accepts such a trade.
2. ERBB like all pennies do not have derivatives that can really make short plays worthwhile trades. Big Board and Nas stocks have options that can be traded short via long puts or short calls, giving a trader the ability to manage risk.
3. Especially at .03, ERBB is a moronic short. There is at maximum .029 to the downside. The volume of the short position would have to be substantial to make even a meager four figure return and if disaster struck, sending ERBB to .001 good luck finding any buyers to close that short position. The potential for upside at .03 after a high of .10 is substantial and a quick pop could murder a trader looking to cover.
4. Let's not kid ourselves, according to iHub short interest is at about 3m shares. Compared to the a/s count that is like a drop of water in the ocean. Short positions start putting downward pressure on a stock when they get up into the 15-25% range and beyond.
Believe me I would have opened a short position around .10. That was one of my targets I posted about my sale at .105. Another target I had was .20 (still do) but at .10, a 5000% gain on my original position, I would have entered a small short position just as a hedge. But at .03 only the most degenerate of gamblers would be shorting. That's not to say ERBB may not be going lower but bottom line, it's not the result of these bogeymen shorts people keep posting about.
And that's it for me folks, my 1 post a day at midnight (9pm on the left coast).
My Bad, Maybe I'm Wrong Malvern
http://stockcharts.com/h-sc/ui?s=VAPE&p=D&yr=0&mn=6&dy=0&id=p08888213164
The gap is actually from November 27, 2013. Maybe I'm wrong here. There is a small one in mid December.
Regardless, I'm in VAPE now for several thousand shares and still looking to accumulate. By no means am I delusional enough to think my posts will move this stock. I'd have a better chance using capital to manipulate than words. I'm also not one of those idiots who posts negative stuff just to start trouble. If you want to see some of my short play posts, check out my activity on the FaceB00k board. I'm not short VAPE (don't short pennies, did it once, made plenty of money but not worth the hassle) and while I'd like to get a lower entry, I'm not trying to talk VAPE down, as if that's even possible.
I put my money where my mouth is and my mouth tells me to buy VAPE even though my words may be taken otherwise. We're on the same team. I want VAPE to succeed. I have money on it. I'm confident this company has good stuff working for it. Great share structure. Great products.
I'm just playing devils advocate and again not "predicting" just observing.
Good luck Mal and others
Thanks Lions, I'll Check It Out
I know exactly where that is. It's in a small, two level retail building just off a whacky BP or Arco station, just down the street from a major Kabbalah joint. Not sure exactly when I can get over there but I'll stop by at my earliest opportunity.
Still 300% Higher Than Past Levels
No where the all time highs, but still well above multi-year lows.
If you have the capital and cajones, now is a good time to buy VAPE but I will not be surprised if we see better entry points