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Hearing the same thing about boots on ground and conferences but don't think that will start coming through to 2nd half of year, is say similar to q1 though q2 historically has been their slowest 1/4. Q1 ,3 and 4 are the quarters you need lights and heat !!
What's your thoughts on earnings? I'm thinking slow and stead with a bang 2nd half of year
Company is a long term real player. It will get attention based on results. I expect a huge 12 months for these guys. Fundamentally the best company in all he space as far as I'm concerned
More To Come For This Cannabis Lighting Company?
POSTED ON July 20, 2017 BY Jeremy Lutz
Share6
Analysis originally distributed on July 13, 2017 By: Michael Vodicka of Cannabis Stock Trades
There are millions of square feet of cannabis cultivation facilities being built all across North America.
Take Americann (OTC:ACAN) for example. Americann is a U.S. based cannabis company headquartered in Massachusetts. Americann is in the early stages of building a 1 million square foot cultivation facility in Mass that will potentially serve as the primary cultivation hub to supply a huge portion of the Eastern cannabis market.
Cronos Group (CDNX:MJN.V) is another good example. Cronos is a Canadian cannabis company headquartered in Toronto. In May, Cronos announced that one of the companies it owns, Peace, had broke ground on a 315,000 square foot cultivation facility.
This project will include a 286,000 square foot production facility, a 28,000 square foot greenhouse, and a 1,200 square foot extraction laboratory.
When finished, this facility is expected to be one of the largest indoor cannabis production facility in the world.
As you can see, cannabis companies are in the process of hugely ramping up their cultivation capacities to meet the tidal wave of demand for cannabis coming down the pike.
One way to profit is to simply invest in the companies building these cultivation facilities. That could turn out to be extremely profitable.
However, I have an even better way to potentially profit.
This way – you can profit from almost every cultivation company in the entire industry by investing in a company that is already supplying cultivation centers with mission critical lighting systems.
Solistek Digital (OTC:SLTK) is an early leader in the high-growth industrial cannabis lighting systems industry. The company is headquartered in Carson, California and has a market cap of $51 million.
Solitek’s specialty is designing and manufacturing a wide range of lighting systems and components that are crafted specifically for the cannabis industry.
Its line of products range from complete lighting systems to individual bulbs.
Here is an example of the higher end, complete lighting system.
SolisTek Lighting Systems
Here is a list of features from the Solis Tek website showcasing how technologically advanced these systems are.
Professional 1000W adjustable ultra high frequency lighting system
High efficiency super reflective horticultural aluminum
Suitable for High Pressure Sodium & Metal Halide Lamps
Incredibly high output & even spread
Featuring Ignition Control™ & SenseSmart™ diagnostic check
Includes SolisTek high output 2,100 µmol HPS lamp
Light weight & easy to install & reflector is easily replaceable
These units range in price from $549 to $599
Here are a few pics of Solistek’s digital reflectors.
SolisTek Deflectors
Here are a few pics of Solistek’s digital light bulbs.
SolisTek Light Bulbs
Solistek 2016 Revenue was up 11% from 2015
Solistek is already establishing itself as an early leader in a high-growth cannabis sub industry. Its recent earnings reports have shown impressive growth.
It's 2016 revenue increased 11% from 2015 to $8.56 million.
Gross profit was up 15% to $3.12 million.
Gross Margins increased to 36.5% up from 35.3% in 2015.
Its cash balance increased 159% to $276,000.
More recently, Solistek reported awesome first-quarter results on May 8.
Revenue jumped 12% from the same period last year to $2.9 million.
Gross profit jumped 21% to $1.1 million. and $925,957, respectively.
Gross margin once again ticked higher, climbing to 38.6% from 35.8% in the first quarter of 2016.
Its cash balance was up big, climbing 50% to $416,000.
This growing cash balance is important because it gives Solistek more capital to invest in growth.
On a GAAP basis, which is how regulators require publicly traded companies report their quarterly results, net income was negative for the quarter.
However, on a non-GAAP basis when stripping out one-time expenses, Solistek was almost break even on profit for the quarter. That represents an important turning point that shows the company is on the verge of becoming profitable.
Solistek is Getting More Attention in the Broader Cannabis Industry
Solistek’s impressive growth is generating more interest within the cannabis industry.
In April, Solistek was added to the MJIC North American and United States Cannabis indices.
Solistek achieved multiple qualifiers to be included in the index.
The minimum trading requirements for companies to join the index are:
Co weighted average minimum market capitalization of US$30 million
Daily trading volume of US$600,000
Share price of US$0.10
This is an important achievement for Solistek because it will help the company gain more publicity from investors and that should eventually drive more capital inflows into its stock.
Solistek Looks like one of the Most Undervalued Stocks in an Overvalued Industry
Since this company isn’t yet profitable, we must use sales to analyze valuation.
Based upon first-quarter sales of $2.9 million, I am expecting Solistek to deliver sales of $12 million in 2017.
With a market cap of $50 million, that has Solistek trading at 4.2X annual sales.
A sales ratio of 3 is considered value territory. So a 4.2 multiple on a company growing revenue 12% year over year is a pretty nice bargain in the cannabis industry.
Solistek is Developing Major Support on the Chart
Solistek has had a pretty wild year on the chart.
Shares spent the first three months of the year trending higher. Then Solistek blasted higher above $3, giving it a 550% gain. Since then, shares have fallen sharply but are still up 175% on the year. Take a look below.
SLTK Chart
This looks like a great formation to me. I think shares are in the early stages of forming a long-term bottom and should reverse and head higher.
The Big Picture on Solistek
Solistek is an early leader in the cannabis sub industry of lighting equipment. Sales growth has been impressive in the last 12 months, which has gotten the attention of the broader cannabis sector and led to its inclusion in the MJIC cannabis index. I’ve got this stock on my short list to add to the Cannabis Stock Trades member portfolio.
Enjoy,
Michael Vodicka
Editor, Cannabis Stock Trades
Disclosure: Michael Vodicka owns shares of Terra Tech (TRTC), Kush Bottles (KSHB), Cara Therapeutics (CARA) and INSY Therapeutics (INSY)
Sent from my iPhone
Big future if you read into this !! Solis Tek already front of the queue
Bigger Than Bingo: Seminole Chief Jim Billie On His New Cannabis Advisory Firm And A Tax-Free Environment
BZ Wire
One of the largest problems cannabis entrepreneurs face right now is taxation. Since marijuana is still illegal on a federal level in the United States, businesses operating legally on a state level don't qualify for federal tax deductions covering things like rent and employee salaries.
However, as per Section 280E of the Internal Revenue Code, these businesses still have to pay taxes, even though the federal government considers their income derived from an illegal source. In fact, effective income tax rates can reach 70 percent in some occasions, industry insiders have told Benzinga.
Some experts have predicted some kind of federal tax relief will come soon. Nonetheless, effective rates are expected to remain high for the foreseeable future.
A CREATIVE SOLUTION
Interestingly, cannabis investing and strategy firm Electrum Partners and Seminole Indian-owned company MCW came up with a creative solution to the taxation issue. A couple of weeks ago, they announced a new partnership for legal cannabis business development and expansion in a tax-free environment under tribal government.
"This collaboration will spur massive economic stimulus for the Native American community and give investors in legal cannabis an unmatched competitive advantage," a spokeperson told Benzinga.
See Also: Nevada Marijuana Emergency Shows The Real Size Of America's Demand For Cannabis
Back in March, Cronos Group Inc (CVE: MJN) (OTC:PRMCF) CEO Michael Gorenstein told Benzinga about Indigenous Roots, a similar project that had been very successful in Canada.
Now, here's a story about how the most famous Indian Country leader, James E. Billie, former Chief of the Seminole Tribe of Florida and alligator wrestler, made a fortune off the gambling business and eventually transitioned to the marijuana industry.
HITTING THE JACKPOT
“Before I became Chief in 1979, Indians of the United States, including the Seminoles, were having a lot of financial difficulties,” Chief Billie said. “One day, somebody came to me about doing bingo on a reservation. The game was regulated in the state of Florida, but we could play it according to our own rules, with higher stakes.”
The story of how lucrative bingo, and gambling in general, became for Indian tribes is pretty well known. What’s important to understand is that “the key element was sovereignty,” the possibility to create their own regulatory framework, Chief Billie explained, alluding to the tax-free environment in which these businesses operate. Now that Florida has legalized medical marijuana, Native Americans can once again leverage their sovereignty to gain an edge over other players in the industry.
“I think this is going to be bigger than bingo,” Chief Billie said. In states were cannabis is legal, tribes can get a new economic influx. This is where the new partnership between MCW and Electrum comes in.
The success Chief Billie has had in his business career and the respect he enjoys among Native American Nations are unprecedented.
"He is a living legend," Electrum President Leslie Bocskor told Benzinga. "Just like Chief Billie changed the bingo and casinos industries forever, we see an opportunity now for this to be a game-changer for the cannabis industry."
Bocskor continued, "Chief Billie and I agree that this has to be done to the highest standards, even exceeding the standards of the states where the tribes reside. This will sow the field, so to speak, to prepare for this industry covering many different areas like industrial hemp cultivation and R&D partnerships.”
THE PARTNERSHIP
What exactly will this partnership do?
This alliance was conceived to create a financing and advisory team for cannabis entrepreneurs in Indian Country. The idea is to leverage Chief Billie’s and MCW’s tribal relationships, and Electrum Partners’ understanding of the cannabis industry, while taking advantage of the tax-free environment provided by Native American reservations.
“Right now we are interviewing and auditing the potential partners and investors," Bocskor said. "We had a tremendous amount of interest, so we want to make sure to establish the right partnerships and the right investors participate.” Bocskor mentioned he's been approached by some of the companies he works with including GB Sciences Inc (OTC:GBLX), Solis Tek Inc (OTC:SLTK), Kush Bottles Inc (OTC:KSHB), Grow Solutions Holdings Inc (OTC:GRSO) and Terra Tech Corp (OTC:TRTC).
“The next step will be locating the Native American partners we want to work with.”
At first, the company will likely focus on cultivation, industrial hemp and dispensary operations, he added. Even though Indian Nations can create their own rules and regulations, the firm will only conduct business with tribes that live in states that have legalized cannabis and implemented a regulatory framework – just to play it safe and avoid having to go to court over each venture.
Editor's note: MCW isn't owned by the Seminole Tribe, but instead by former Chief James E. Billie.
President Alan Lien live on Cheddar https://cheddar.com/videos/158612
Given their position in this space I'm prediction a $80m revenue company worth over $500m in less than 3 years. Expecting a solid Q2 results and then want to see things ramping up in Q3/4. Industry growing and Solis Tek is well positioned to grow with it.
Why terpenes are going to explode https://cannabis.net/blog/how-to/terpenes-what-are-they-and-why-should-growers-be-paying-attention. Solis tek has the only compound in the market place , I expect great results in this going forward
Looks like their nutrient range is going to be the market leader
More positive news
https://cannabis.net/blog/how-to/terpenes-what-are-they-and-why-should-growers-be-paying-attention
Great read as to why this company just makes sense
https://finance.yahoo.com/news/smart-money-investing-cannabis-without-113000666.html
Ok, so here goes. This synopsis is based on what we know so far with a bit of supposition thrown in.
Some basic fundamentals on the company first.
Sells lighting and now fertilizer into the Mj space, not only do they sell, they are market leaders and introduce new products into the market in both lighting and now fertilizer which are unique and add value to growers.
They do this directly and through 600-1000 hydroponic stores around the country so have a fantastic broad user base. They also sell directly to large commercial grows and this revenue looks to increase as the market grows.
36m shares in company of which 80% are held by 3 insiders. That equals small float in otc land.
Share price $1.86c market cap $67m (based on 2016 EOY numbers )which is a multiple of 7.4 times revenue.
Market average revenue multiple in this space is 15 times revenue so this has room to run yet.
All the above are facts.
Some supposition based on what we know of 2017 so far and using past filings as a template.
Q1 shows increase in revenue, margin and just shy of break even. If this trend continues and given the market growth, I see no reason why it shouldn't then we could be looking at a $12m revenue year.
If that's the case the 15 (market average multiple) by $12 is a market cap of $180m or $5 PS.
If we add in revenue from fertilizer of say 3m then Rev goes to 15m, market cap goes to 225m or 6.25 PS.
Now if there are stronger numbers or should they decide that they can capture market share with mergers, or buys then this thing explodes through $10 ps.
To put it into context, for every $2.4m increase in revenue over the numbers above, the market cap using average multiple 15 goes up 36m or $1 PS
Example, a merger adds 10m ( for easy math) then pps could go up by $4.
I believe this will be the MJ play of the next few years, hope you all play and make money
Sorry folks, went on vacation with the family.
I'm extremely upbeat and will tell you my thoughts on why later on.
You can't buy a call on an otc stock so it's just a vehicle for you to make a point with, however if you send me details that you have the wherewithal to cover your suggested trade and can get it papered up, I'll take your trade.
Agreed and it's only starting. New product launched , lughtingvand bsllast growing. Still undervalued here
Expenses didn't really change. The big line item is the one off CEO compensation package. Strip that out as its stock based and all is good
CARSON, CA–(Marketwired – May 08, 2017) – Solis Tek Inc. (OTCQB: SLTK), a leading provider of digital lighting equipment for hydroponic cannabis cultivation, reported record revenues for the quarter ended March 31, 2017 of $2,901,826 compared to revenue of $2,584,668 in the first quarter of 2016. This represents a 12% increase in revenue year-over-year. Gross profit for the quarter ended March 31, 2017 and 2016, was $1,120,522 and $925,957, respectively. The gross profit increase of $194,565, or 21%, was primarily due to an increase in revenue and continued focus on internal efficiencies.
I believe Solis Tek is poised to continue to build market share within the cannabis industry and I am excited to have joined the Company at an inflection point in its growth and path towards maximizing its potential.
They also launched a new product range in fertilizer so a new revenue stream going forward
Have to agree, it's the real deal
Market likes the news , continued record growth and increase in margins
Results at a glance
Company had revenues of $2,901,826 for Q1 2017; up 12% from first quarter of 2016;
Net loss of $3,751,987 for Q1 2017 due to significant non-cash costs of $3
Gross Profit of $1,120,522 for first quarter of 2017; up 21% from same period in 2016;
Gross Margins increased to 38.6% in 2017 up from 35.8% in the first quarter of 2016;
Cash balances increased 50.4% since December 31, 2016;
Extremely positive Q just released
sales up, profit margin up, 50% more cash in account. Very very positive .
Martin 33, looks like your rumour was right, picked this up in Twitter a few mins ago .http://secgems.com/s/h80oeBkU.n
Looks like there will be an earnings release today. Here's hoping for good news !!
What was done?
The stock has been rising for almost a month and took a sudden spike when a number of reports started to be written about it. The volume and price hike was crazy and it had to pull back a bit, good technically . It was set up to short and you being a shorter would know that. It shorted off and recovered quite well.
99% of people didn't even look to see what the story was about the company, let alone when earnings were. Hopefulybesrnings whenever they come out will be good, as stated previously, I'm hoping for revenue growth based on the overall market getting bigger. Time will tell but this is not your ordinary BB company, solid revenue, good management, great products, booming industry are all unique in a exchange filled with hot air.
Well done , proper DD. When a company like this hires somebody like kcsa, it's important for investors to utilize that facility. Keep us posted
They have a top class IR compsny in the form of KCSA who are willing to talk to investors and give you whatever info is available. A simple email to the email on the bottom of PRs will get you well on your way
Their fiscal year ends ends December and that's why their 10q can out last month.
It sold off becaus shorts got it and stock had really over extended. The correction was good in the long run and some people made money short term. All depends if youre a trader ( short or long) or an investor.
Even with the pull back, anyone in under $2 is still doing great and anyone below that is really happy.
Up from here on good results ( we hope )
You're welcome. I genuinely believe it's worth spending some time on to understand what this company is all about. I think you will be pleasantly surprised .
I would be hoping the opposite that if they are serious about becoming a credible company that leaks would be kept to a minimum
Again, not really much of a stretch that given their standing in the Mj space that as the Mj space gets bigger, sltk will get more orders and as such Rev and profit should increase.
That's what we should be looking for here given this space is expanding.
Again a little bit of DD would leave you better informed. They have their own In house team dedicated to development of new products that are then manufactured by a plant owned by one of their associates in china and shipped back to them in the US when completed. Good old American design at Chinese prices.
They are recognised throughout the industry as innovators and regularly bring new products to market that improve the grow process. That's why the can offer the best lighting and ballasts in the market and still stay price competitive while having a healthy margin.
Re a pump, this stock has been slowly gaining moment since Feb and then it exploded on their 10Q because a few reports appeared and it caught the imagination. Did it run to fast, yes but that is the market doing its thing. It will find its true level which in this market place is in excess of $100m given comparatives that are available.
This company is the real deal and it's worth taking the time to take a proper look instead of rolling out the tired P & D statement. I agree that it happens a lot but this company is 100% legit and will continue to grow and deliver whether we agree or not.
I'll reply as to why I use single line sentences, it's easier to read if you are writing more than a few lines plus if if are writing using a smart phone, it runs off either side and makes it difficult to follow. As to why the other guy does it, not sure but I'm sure he will have his reasons or maybe that's just the way he writes.
Not really relevant in the context of discussing the company.
I think we go up next week, I think the values of the company with these fundenentals in this space is somewhere around $120m (see kshb which is similar). That's 3.50 per share now. The only issue we had is that it got there way too fast and was always going to pull back. It was a perfect short play on Friday and the shorts took advantage of it. Fun will start if as predicted by another poster that results are due and are good. It may run agsin and could see a spike as people cover.
Wrong, solistek rated as number 1 in the business of lighting and ballast. Growing Year on year ( hopefully this trend continues in their next filing) .
They became public over a year ago and only got attention when they released their first 10k a month ago. Since then it's been a wild ride but it's down to people realiasing the fundamentals are strong. 8.9m revenue, margins 34% , very little debt. Have a look at kshb which is very similar and it consistently trades in the $130m mark.
Added to them being in the right space, small cap structure, 36m share, 80% held by 3 insiders, tight float and interestingly enough, one of the top IR firms in the country started to represent them a few weeks ago. They also represent kcsa and multiple companies on the NYSE and Nasdaq. Doubt they would jump in without making sure it's legit.
All audits up to date, fully reporting, fully audited by credible firm , money in the bank and nearly 9m in revenue. I don't know many company's no matter what industry they are in that has fundenentals this good on the otcb a.
Just my thoughts
I'm anticipating good news , growth and progress
Your trying too hard, stock overheated because of Huge interest and needed to settle, no stock can go up like that without attracting short attention. Difference is that this company is legig with strong revenue and in a growing space.
If you call and ask about the offering you will realise that they pulled it hence only 300k filled.
Plus if you look st the market, average market cap is 13 time revenue, sltk at today's price currently trading at 9 times revenue with no debt.
It needed to retrace but will go back up based on fundamentals
YOue overthinking,
It had overextend and overheated and shorts got it, retrace is healthy.
Company is fundamentally one of the best companies in this space
Even better ( as long as they are good) if that's the case and results are good we could be looking at a upward squeeze
I'd imagine the next week or so and if they are good then it's upwards from here
Agreed, it needed the correction ( bit too severe) but recovering nicely