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O and BTW you are right. Last I looked at the Benzinga 420 MJ index it was 96. It's all time high is 1010 and its all time low is 70. The other index the MJ Index (MJIC) looks just as ugly. In years past when the indexes got in this range the sector went nuts within several weeks.
Yea, over the years that I have seen with this sector is that they will bleed this sector almost completely dry and then it is quiet for a little while and then BOOM, the sector goes nuts. The ones that really go parabolic are the newer stocks in the sector with a lower float. This has massive potential IMO, it fits both categories. They also are a real company with really good products and revenues of well over 1 million a quarter. They also fully report. This stock is far better then most of the junk in the sector. Recently I had big gains in OSLH, MGON, and MDCN. All three are junk IMO, balance sheets are terrible and nothing much of a business in any of them. All 3 currently have market caps well above VHUB's. By the way all 3 of those have been diluting through note conversions recently. I see no reason this can't at least have a nice pop and I think more likely have a strong run up.
Looks like a repeat of Feb 10th-17th where it bounced strong off closing at 0021 and doubled. Then Feb 25th it bounced strong again off closing 0021. What did it close today? RSI cooled and sits just over 50. Most likely a strong bounce on Monday. Happy that I picked up a little 002s.
Historically this stock seems to do well every March/April. If note conversions have been completed (I think that they have) and if the management starts to talk again (they haven't said a word in months) then history might repeat.
I've never said anything about a merger.
I think VHU8 and VPOR are kind of similar. VPOR is growing faster. Both have strong revenues of well over 1 million a quarter and both are on the verge of profitability. Both have very good products. One is east coast and the other west coast. Both in my view are undervalued. I own both. If you would like more info about VHU8 go to that message board and read the posts that I have made over there. I am fair and accurate and tell it like it is. I cover many things including their balance sheet and loan terms as well as several other things. I do own both VPOR and VHU8 and I believe considering all metrics involved they are by far the two best stocks of the vape sector.
Head back on over here in a couple of weeks. Something will happen over here by then IMO. I did well in MDCN too by the way. I actually got it in trips a couple of weeks ago and then enjoyed a 3 day run in it. Patience is key with these things. Patience buying and selling. If both are timed well, big gains to be had usually.
It shows a net profit, not a loss. A loss would have been in parentheses. The financials are "interim". They are only showing the first half of fiscal year 2014. They don't show the second half of the year.
I'm not sure if the OTC will lift the stop sign with interim financials that only show half the year and deem LATF "current". We will see I guess. If they do then the new CEO can put investor relations back in place and also release press releases.
Financials for the back half of the year might come in a couple of weeks, don't know, still reading through everything.
It was a start. The new CEO has started by filing the annual report. It seems they are no longer dark. Next logical step I would think would be for him to give a well explained corporate update.
The pps was able to rise like it did today and all they did was show a pulse, so I would imagine it could do a lot better if there were to be some good news.
A/S has been 10 bil for over a year now. You just now noticing?
PAR/SAR has flipped. RSI broke 50, broke 50 day moving average. We seem to have a runner on our hands.
OTC shows they filed financials. It looks to be just the disclosure so far. Fins should hit the wire soon.
Funny, problem is I have a real picture of Latteno's office, not some made up joke.
That is great. Great work! Meanwhile on the seafood side it looks as though a new subsidiary was created. V-star foods. It has brought in about 40 shipments of seafood already this year.
Been looking at that for awhile. You are completely correct. PAR/SAR has been stuck for days at just over 0013. Also a wall has been/is set up there. A push over 13 flips the PAR/SAR and gets the RSI over 50 and there will be a run.
The only problem with this stock is that there is little interest and zero excitement. That is a big problem, especially for an OTC stock though. As of Jan 16th toxic convertibles were 200k. Malvern and I think that it is probably 400k now. I personally think they should dilute and allow the convertibles and not pre-pay the loan to avoid it. It would save them cash. It would clean up the balance sheet and it would by my math at a rough estimate increase the O/S from 68 million to around 120-160 million, still a very small S/S. All these stocks always have convertibles. Modest dilution isn't the nightmare that massive dilution is. The market cap of VHUB is tiny, however their revs are similar to VPOR's. VHUB's products are very good as well, like VPOR's. I actually think the two companies are very similar. The difference being VPOR has some excitement happening whereas VHUB doesn't. In 5 weeks the convertibles can become shares. It won't be massive dilution, It will be modest but if there isn't any buying interest it will hurt the pps. If there could be some buying interest then the shares could be absorbed without much of a problem. This will be up to the CEO. Right now he doesn't seem interested in generating excitement. Maybe he will soon. He needs to. He needs to get the pps up and get the market cap up (currently only 1 million dollars) and get some excitement going around here so that if they take the dilution route it can be done without severe damage. He should be able to pull this off. No reason that he can't. He has really good products that he can brag on, good revenues and a way undervalued market cap. It should not be that hard for him to make VHUB look attractive. He should explain his payment plans whatever they are and even if he intends to do the convertibles then he should say so and explain. Like I said it would be modest dilution. If he would only generate some excitement he can get some eyes on this and some buyers in, get the pps up and do modest dilution which cleans up the balance sheet while doing it with out destroying the pps. If he can't pull it off then I don't know what I would say. It shouldn't be too difficult. I think he needs to get trained by Dror (VPOR CEO) on how to generate some excitement. VPOR and VHUB very similar. Main difference one company knows how to excite and the other doesn't seem to want to or know how to.
We think a lot alike :)
Good post, hence why I have believed for a while that there would be a pop before May. To be honest I agree with your pps movement prediction. In all honesty I don't think it goes below 1.6 cents. I have a good amount already at 1.5 cents and am happy with that position. If it gets stupid around here though I do have dry powder sitting ready to go.
It might, will need to see some panic selling to push the RSI down to 30 and that should equate to a pps of about .012 or there abouts. I have a few K ready and set aside just for VHUB at that pps. I also caught that huge run in MDCN. Bought that sucker at trips 9 last week. Sold it a couple of days ago. I very easily could use profits out of that once the sell settles in addition to the few K I have already set aside for it. I think VHUB is going to have a nice pop before May. Not sure how high but I think at least something pretty decent. Still doing my homework on ENCR. I am very slow with my homework lol.
Yes very true. It is obvious too that the Fed judge is waiting to see what progress Congress makes. You are correct about Sen Grassley also. He is important because he is the chairman of the committee that the bill is in. He can blow up the whole thing if he wants or he can allow it to be voted in committee where it would pass and then brought to the Senate floor where it would also pass. At first the chances that it would get through committee were slim. It has gained momo though and now has a decent chance. The House would need to pass it too but it shouldn't be a problem there. The House last year passed something similar, the Senate never took it up last year.
Diversification is a must. I would have several MMJ stocks so that if one didn't work out you are still in the game. As you said once rescheduling happens these will go up 1000%. I think 1000% minimum for that event, but yes something like that. Now the judge and/or Congress could keep stalling. I would not even venture to guess for how long either. It could be awhile. I know the event is coming though eventually and I see the sector near all time lows. To me that says accumulate, diversify and wait it out.
SMF, I was the one that talked about the algorithms. I would like to confirm that I believe what you say to be very true. That is exactly what they do. For folks that think that fat cats don't play with penny stocks, well think again. They make huge money up and down. I believe even more so on the downside. Matter of fact sometimes I believe that with some of these OTC stocks they will move the pps up huge just for the purpose to give room for there to be money to be made on the downside again. The way OTC stocks move is massive both up and down. Someone/s is making a lot of money both directions. Not retail on the downside. Under most situations retail can not short penny stocks, but that doesn't mean non-retail can't. Now these "MMJ/vape" stocks, well that is their golden goose. It is by far the biggest and most liquid sector on the entire OTC. History shows in the past that just before there is a sector wide spike in this sector the stocks will normally have been hammered down for at least 12 months. After the spike as you said note converters and other MMs do their thing on the downside. Money is made all the way down. There comes a point though that there isn't any money left to be made, there isn't really any more downside.
The only direction after that point is back up. No one can make money again back on the downside if they don't go back up first. Before the next spike as you said they will shake out all that they can and collect shares in preparation for the next spike. A "catalyst" presents itself and off pops the whole sector. Two questions one should ask themselves right now. Is there a "catalyst" on the horizon? Well I see a Federal judge stalling 3 times now to give her ruling if MMJ being schedule 1 is unconstitutional. I also see that the House has now joined the Senate with bills to reschedule MMJ down to schedule 2. Whether by courts or by Congress if/when MMJ gets rescheduled to 2 then immediately banking can join and this industry becomes fully "investable" for everybody. I would say rescheduling will be the biggest catalyst ever. Second question. Have these been pushed down to an extreme level where there really isn't any other place for them to go anymore but back up? I say let either MMJ index tell you that. I like the Benzinga 420 Index, let me post what their "Daily Dab" shows the index to be today.
"Benzinga's 420 Marijuana Index is estimated to have declined about 1.4 points to 96.4, reflecting a decrease of 26.2% so far in 2015. The index began 2013 at 100, 2014 at 159, and 2015 at 130.7, and it peaked last March at 1010 after bottoming in August 2013 near 70."
So you see that the all time high of the index is 1010. You see that the all time low of the index is 70. You see that the index is currently 96. The thing is almost at its all time low. Is there really much more money that an entity could make on the downside? Doesn't really seem like it to me. What then has to happen next? With what SMF and I have pointed out I ask does it seem like a good time to buy or sell these stocks right now?
If you want it I'll email it to you, up to you.
Thanks, I'll take a look at it. It will have to knock my socks off. Been playing pennies for awhile. Very rarely will I go long. Even here I have not decided yet if I would go long or not. I'm considering it IF I am able to determine that the possible coming dilution will be modest. If so then I just may. I'll check out ENCR.
BTW, .012 would be nice to get here. Maybe some panic sellers will give it to us next week :)
Absolutely, a forward split would be good IMO. Like I said it seems that the tiny S/S is actually a bit of a hindrance. A forward split would bring some attention I think and would absolutely help with the wide bid and ask spreads. Most won't like to hear this but I believe this ticker would perform better if the OS increased to 200 million and the float to 100 million vs the current O/S of 68 million and float of 32 million. When I call them I will bring that up.
It is flippable, I did it once and sold over 3 cents and then bought back as I said at an avg of 1.5. I really think the best thing here is for them to go ahead and dilute. Matter of fact I just may call them and suggest it to them. Before anyone thinks I am crazy here are my reasons.
1) VHUB was running up nicely with very good momo and then the A/S increase came and scared everyone away. The pps ended up losing 80% so basically the pps already dropped for an event (dilution) that hasn't even started yet. Why not just go ahead with it now?
2) The float is too small. Some people actually don't buy because it is so small. The spreads are too wide a majority of the time. People think they might not be able to get out if/when they wish to.
3) The market cap is a joke right now. It is a paltry 1 million dollars right now. Almost half that of RFMK which has no revs really and frankly I don't even know if they have a product to sell currently. VAPE, ECIG, MCIG, etc, etc all have much much higher market caps and why? If dilution were to double even triple the O/S and the float what we then have is a 2 or 3 million dollar market cap. Big deal, that is still tiny and smaller then almost all the other competitors. Again though that would be modest dilution scenario, not a massive dilution scenario. The key to know is exactly how much do they owe Typenex. If it ends up being 500k or less then big deal. I say dilute. O/S and the float would double. I could live with that.
4) Another reason that people are iffy about buying this is because the balance sheet isn't very pretty. Again though it isn't any worse then competitors. Dilution would clean up the balance sheet and make things look pretty decent. I nice looking balance sheet would be a nice attraction.
5) The full Typenex loan is up to 1.5 million or something but they are no where close to owing that. Financials showed as of Jan 16th they owed Typenex 200k. If it becomes 300, 400 or so k then I just don't see that amount of note conversions being more then 20-40 million shares. So the float goes up to 60 million or so. That is not disastrous.
Under those conditions I believe as crazy as it sounds that it would greatly benefit the company to dilute (if modestly). The question marks about the balance sheet, debt, and whatnot would be over. Investors would feel more comfortable with that stuff in the rear view mirror and the stock would actually be more attractive afterwards because with the float maybe doubling it would provide smaller spreads and better liquidity to the security overall that would be perceived as more attractive. This modest dilution could be done without a major hit the the pps as well. It seems to me that it is already factored in anyway. The market cap is so small that the diluted shares should be absorbed without much hit to the pps. I rarely go long on a penny stock and I don't think I have ever been an advocate for a company to actually dilute, but in this instance as long as it is modest I think the juice is definitely worth the squeeze.
Good to see that someone has a good idea about what kind of security this is. The float is way too small and is not good for flippers and traders. This is an intermediate play maybe possibly a long play (I myself rarely go long on a penny stock). It is not a short play in any way. These guys fins are not stellar. Neither is their competitors. Good chance they will have to dilute. How much depends on how much they borrowed from Typenex. As of 2 months ago they owned them 200k. Now maybe they owe them 300 or 400k. Won't know until the company says something regarding that. I have looked at all of these vape stocks and all of their balance sheets are very ugly. I still can not understand why others have market caps way higher then this. This has the lowest of the whole sector. Others have much less revenue. Others profitability is far more in question and others legitimacy even in question and yet they are valued much higher then VHUB. Two problems here. First, the CEO is doing nothing to get some excitement going. I don't want him to pump, but he could generate some excitement. Second and this sounds crazy but the float is actually too darn small. Honestly with minor to moderate dilution (not heavy or massive) this stock would trade much better and probably at a higher pps. In turn that may even feed on itself and get more people to look at the ticker.
My plan going forward is that as I see it this is way under-valued in comparison to peers. RFMK even has a much higher market cap. I read financials and loan terms in detail and clearly understand the fundamentals here. I am currently avg in at 1.5 cents and I like that position. From here if I can get more at 1.5 cents or less I will add. If the pps doesn't improve before I think dilution will come I will actually consider holding. What they have borrowed from Typenex is currently a few hundred K. That may lead to modest dilution (for a penny stock) but not massive. I suspect it will end up increasing the float from about 32 million to 50-60 million shares. I actually believe that may end up helping the ticker down the road. Call me crazy but for once I may just consider going long on a penny stock. For now I would like to see more people selling so that I can double shares at my strike price. It ain't there yet, but maybe we can get some panic selling.
I have a picture that is just a couple of weeks old of the seafood division office. Has Global Trading Group in big fat letters. Office looks pretty decent and yes the lights are on inside.
Yep and then debit/credit can be used. It opens the flood gates for big money to join the industry. The FDA can give out grants for research. Big Pharma and tobacco can join in acquisitions if they wish to. Universities can research. Doctors can prescribe freely. Pharmacies can carry and fill prescriptions. Rescheduling is the mother of events for the sector. It literally changes everything. It is coming too. Polls after poll shows 75-85% of voters want medical MJ legalized (rescheduled). Recreational is different. It is about 50-55% want it legalized. As far as medical though voters along all party lines clearly want it. Moms are being threatened with prison time for giving their kids medicine that they need. MJ is the only thing that is working for those kids with that terrible seizure syndrome and Moms are facing prison time? That is nuts. The pediatric association is livid that MMJ has not been rescheduled yet. Yesterday I just read a story about an 11 year old that passed away. Her parents had a lot of trouble getting the child the medicine that worked. That is total BS. Children should not be suffering and in some cases dying because out of "tradition" politicians want to keep MMJ schedule 1. It is time for them to do the right thing and move MMJ down to at least schedule 2. After all moving it down to schedule 2 where meth and coc are I would not consider an "extreme position." The time will be soon. It will be rescheduled, sooner or later it will be. It clearly has medicinal uses and therefore can not remain a schedule 1 drug.
hmm, that will be dependent on many things. People don't want to hear it but OTC stocks thrive on hype. You get a CEO that can get some excitement going and that is worth just as much as financials. I know it is stupid but that's the way it is. We want him to keep it real though. He's pretty good at generating excitement when he wants to. FYI, that is a big plus as long as he keeps it real. That dang Federal judge keeps stalling with her decision about the scheduling of MMJ. The Senate and now as of yesterday the House are working on bills to reschedule. Whether by courts or by Congress IF either makes some real moves regarding MMJ rescheduling then the whole sector will have another one of those giant spikes again IMO. Financials also are very important. Show me the money! If revs are impressive and VPOR has become profitable and the balance sheet is now a thing of beauty then that will help greatly. To sum it up I believe they deliver on the financials and the CEO will play his role and turn the heat up (but keep it real) and I could imagine a market cap of 30-60 million. I will assume around 3-3.25 billion shares outstanding, so at least a penny. Now if movement on rescheduling MMJ comes and in particular comes while VPOR is doing its thing anyway. Good heavens, you'll be changing your underwear. Realize this rescheduling is a real event, not a hype event. It instantly makes the MMJ sector legit. Best of all allows banks to join in, so how big a spike would the sector see? Massive IMO, bigger then even the last one. SPLI/VPOR reached a market cap as high as 150 million on that last sector spike. We can't count on rescheduling events though. That judge keeps stalling and Congress is well Congress.
Naw, we pretty much agree. It could hang around here, it could dip a few ticks, heck the converters might be done sooner then anticipated, never know. I was just saying 15 or 12 or 14 or PAR, whatever, I don't care. For what I think is coming kind of soon I am not too concerned with a few ticks of movement here and there. Buy low, sell high. Buy low, sell high. Now is low, later is high.
I have actually been here in the background for a very long time. I first bought shares of this even well before that wolf pumper mask guy did. Made my money and hit the road. The index had peaked out and companies were getting suspended so I could tell the down cycle for the sector was approaching. Also, look far far back and you will see when SPLI completed and finished the reverse merger and changed to VPOR what it says in there. If I recall correctly it was way back in April, so many never read it. Basically it said that for them to acquire Vapor they were going to blow out the shares (I am paraphrasing of coarse, just trying to give the short breakdown version). Anyway I read that and knew what was going to come eventually. That is one thing I never understood. The CEO told the world what was going to happen far ahead of time before it really started and yet people blame him. I mean people can have their opinion of whether he made a good deal or not but to blame him that they didn't know a share explosion was going to come? Gotta read PRs, and filings folks. It is a must. I mean he ain't going to personally call folks up and say "hey man, there is going to be a share explosion starting in 6 months, you might want to get out".
Thanks man. One thing I left out though is what I was saying only applies if the pps dumped down to PAR and note conversions were the culprit. If a stock dumps down to PAR and there were no note conversions that helped it get there then I usually won't mess with them. This whole PAR theory of mine is only if note conversions played a roll. It certainly did here and I'm ready to ride. I'd estimate 1-3 more weeks and we fly.
I'll share a couple of tid bits regarding penny stocks. Dealers/MMs use algorithms. Time and again when note conversions are on-going the pps gets destroyed. The algorithm has it all figured out from before it even starts. Volume, selling, buying, pps movement and all else in between. Usually the algorithm will time it out that the note conversions end around the same time that the stock hits PAR value. A vast majority of the time once at PAR the note conversions end. If there are more to come then a "recovery" will happen to allow the pps to rise so that more conversions can happen later, sound familiar? At any rate it seems as though note converters do not like to convert below PAR. I'm not completely sure why but it might cause tax issues for them or the company or both, again not sure about it. The usual and typical outcome I have seen time and again is that at the very end of note conversions the pps will be at or close to PAR. Afterwards the pps will rise dramatically.
Go back to VPOR a little while ago. Look at what happened when the pps hit PAR. Soon after note conversions ceased. Selling continued but there was something else occurring as well. The pps was filling the gap from all the way back 13 months ago of .0008. That is another thing. These things always fill the gap and I don't care if it takes 6, 12, 18 months whatever to do it, they almost always do. Well the gap filled and with note conversions ceased the pps shot up 300% soon after. I can not tell you how many times I have seen this happen. It's like watching the same movie over and over again. What is happening now as you know is once the pps recovered the note converters came back to finish up. There is no gap to fill first off because it has already done that. Also they don't have near the notes to convert that they used to. This will not go back to trips. It may hit PAR again but it doesn't seem very likely. This is why I bought 12/13s this time around. They just don't seem to have the amount of shares need to break down the buying and push down to PAR. Don't get me wrong though because it could happen. What do I care though. I got 12/13s, if it goes to PAR (.001) big whop, o well. It is very hard to time bottom. Sometimes you get it and sometimes you don't. When the pps goes up 500-1000% I won't look back and be concerned at all if the shares I bought at 0012 I ended up that I could have bought them at 001. I'm not going to care.
Let me share a perfect example. Last week MDCN hit my radar. They had note conversion happening but I could tell by volume they were ending. I then looked up what was PAR and sure enough that one was .001. I saw the pps was at that level, knew what was going to happen and bought millions at .0009. It ended up that .0007 was the bottom. Well just a few days later the sucker takes off. It started yesterday and continued today. It is now almost 1 cent. I made a 1000% gain on that. Does anyone think I give a rats ass that I bought it at .0009 instead of .0007.
The same will happen here. This time though unlike last time the pps will reach much higher levels much more then the 300% gain as the note conversions will not return a couple of weeks later like what happened a few weeks ago. Strap in partner we are going for a ride. Buying at 10,12,14,15,16 who cares? Never miss the monster trade!
As far as message boards go well, take em all with a grain of salt. People bash, pump, anything and everything. I don't have time for that crap. I've been doing this to damn long, that is rookie stuff.
It really shouldn't be. It is part of the vape sector but the market has the MMJ and vape sectors merged into one. VHUB is part of the MMJ sector whether or not you or I or anyone including VHUB agrees with it or not. Also, last I checked VHUB was on the MMJ Index (MJIC). Just the way it is.
What has me stumped is that VHUB's market cap is still just 1.4 million. Cheapest in the whole sector. Cheaper even then RFMK which is by far the worst stock in the sector 1.9 million mc vs 1.4 million mc.
The issue seems to be that few know of this stock maybe. This CEO is very conservative for a OTC stock. He simply does not try to hype it up, unfortunately that is what the OTC is all about usually. He will not pump and I do respect that and I appreciate that. To the CEO though, you need to get a little excitement going for this stock. You have great products and a good team in place. Your financials are better then many competitors and at the very least as good as competitors. Have you seen the balance sheets of others in this sector? Whew! Mr CEO, you don't have to pump to get some sizzle going and I know that you will not, but can we get the stove turned on at least?
"If there are more out there that actually report earnings, then please let me know. I would like to analyze them."
You asked so here you go. I know a good one. Better then all those you listed. I own it and VPOR and those are the only two I really like. In the end the products will win and VPOR and my other are the best. The other is Vapor Hub (VHU8). If you have questions about it meet me over there. I am very fair and honest. Actually if you read my posts about it over there you should get a very accurate detailed and fair summary.
RR and YWC, been here in the background a very long time. I have always enjoyed both of your postings and have rooted for you as both of you leave emotion in check. Both of you also adjust at times when needed and that is very important. As I like to say don't miss the trade.
RR, what you said is very true. Nothing much changes except revs and SS. One thing that folks sometimes don't understand about these MMJ/vape stocks is that they all go through dilution. It is part of the cycle.
The sector is ripe now it just needs a catalyst. That Fed judge keeps stalling with her ruling, now it is April 15th. 3rd time she has delayed. IMO that is a good sign that she knows she is about to send out shock waves. Looking at sector leaders like hemp and the like I see they all are very close to approaching RSI 30. Last time they did that was in early Oct. They then had a strong pop into the Nov elections. Most likely this repeats for the sector soon. VPOR will run on its own but even more so if it has a sector wave behind it as well. GLTY
PCB, 12 months. Sector has been down 12 months in a row. I use the 420 index. All time high is 1010 (reached last March). All time low is 70. It is currently 101. It is down 909 points since last March. That is what this sector does though. Extreme highs to extreme lows and back and forth, been happening for years.
Malvern and the rest of the message board, I think you guys post honestly and that is rare for a message board. I have been playing this sector for a few years now. Allow me to give a few tid bits of what I have experienced.
1) You are correct that you do not want to have all of your eggs in one basket. You want to diversify with the MMJ/vape sector. I myself like to have 6-8 of these when I sniff a big sector run coming.
2) This Fed judge is stalling. She has delayed the ruling 3 times now. I am convinced that she has already decided that MMJ being S-1 is unconstitutional. If she were not going to rule that way then there would be no need or reason to keep stalling. Keeping things as they are will not send shock waves. Ruling for the defense however will send shock waves. It will start the domino effect. In addition to that the Senate bill to reschedule has a little momo. With that said the judge seems to still not be comfortable enough to give her ruling. She may continue to stall. It is coming this year though (MMJ gets rescheduled). That event will lead to the next great sector spike IMO.
3) This sector long after it ends one of those great runs it will enter a deep death cross. It has been now for some time. It will get pushed to extreme lows. It is currently in the neighborhood of all time lows. On the flip side when these run again look for a golden cross. Once they make a golden cross is when it is time to sell. For years this has worked. Buy these up after a death cross and sell them after a golden cross. I know it sounds backwards but go back and look at the long term charts :)
4) When diversifying in this sector I actually like newer kids on the block. They perform better during the big runs then do the older ones. If you want to buy hemp and others like it then fine but history shows that companies with 2 or less years in the sector get the most love during the sector runs. VHUB fits this category.
5) Look for small float companies also. They also out-perform the sector as a whole during a sector wide spike. VHUB also fits this category. I know that starting May 4th dilution may come but it can't until then. Also the only loan to really be concerned with is the typenex loan. As of Jan 16th they had actually only borrowed 200k from Typenex at that point in time. I'm sure they have borrowed another tranche by now, maybe even two. They probably owe 300-400k to Typenex now. Running the numbers even at a 30% discount that is not major/massive dilution. 400k at about slightly higher then the current share price with a 30% discount will result in roughly 20 million shares diluted (this is if that happens in regards to the loan). In one of those giant sector spikes 20 million shares would be absorbed no problem at all. The float would go from 32 million to a little over 50 million. So what? Have you seen what some of these others do? Dilution to rid themselves of the Typenex load is not the end of the world here especially if they only owe 400k or so and it occurs while in the midst of a sector wide spike.
My conclusion for all and my recommendation is when this MMJ/vape sector is down in the dumps and has been kicked around is when you should start to get interested in them. Well, check box there. When a sector catalyst is on the horizon at the same time you should get very very interested in these. Check box there too. From there diversify and pick out 6-8 of them. Newer kids on the block and low floaters both out-perform the sector. As far as VHUB goes I would not put my eggs all in one basket but this egg has big time run potential. It is one of my 8 that I selected for this ride. Good luck to all.
Judge stalling again. April 15th is now the date. Google it, easy to find, came out this weekend. I think this is a very good sign that she intends to rule that MMJ being schedule 1 is unconstitutional. It will send shock waves when she rules that. I believe she knows it and seeks more political cover which is why she is stalling. If she was going to keep the status quo there would be no need for her to stall. Meanwhile the Senate bill to reschedule MMJ to every ones surprise is gaining momo in the Senate. She is probably watching that closely.
Don't expect anything in the MMJ sector to move big until that judge gives her ruling and/or the Senate does something IMO.
BTW, regardless of anyone's personal belief the market has said vape companies are a part of the MMJ sector. VHUB is a part of the MMJ sector. It doesn't matter if VHUB wants to be or not. VHUB is on the MMJ index (MJIC).
Loading up big on MMJ and vape companies now. The sector is close to all time lows (in he neighborhood at least). When the judge finally rules and/or the Senate passes something the sector will have the biggest spike it has ever had. Reason is for the first time the whole industry will now be legit. If schedule 2 then debit/credit/banking can be used. FDA funds/grants can be used. Doctors can prescribe. Pharmacies can carry. Big pharma and big tobacco can enter. Fat cats with tons of cheese can invest. On and on. Rescheduling is the big one.