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Wanted to load up @ PAR. Bought 12/13s. I think the sands are running out of the hour glass. I might be wrong and I'm fine with that. I have been playing the MMJ sector for 3 years now, and yes VPOR is part of the MMJ sector. It is on both MMJ indexes (MJIC and Benzinga 420 MMJ Index). Two reason that I wouldn't wait any longer:
1) The Bezinga 420 MMJ index all time high is 1010 and the all time low is 70. It currently sits at 101. It is very ripe now for another one of those giant run ups.
From Alan Brochstein's Daily Dab yesterday:
"Benzinga's 420 Marijuana Index is estimated to have declined about 0.2 points to 101.1, reflecting a decrease of 22.7% 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. "
With that said it just needs some kind of catalyst. Maybe like a Federal Judge to rule that MMJ being a schedule 1 substance is unconstitutional. Hey, check this out.
[url][/url][tag]http://abcdriveronline.com/marijuana-will-become-federally-legal-this-month/[/tag]
I agree, but they have a little more time then that. It seems that the article I posted last night suggests that it is almost a slam dunk that MJ being on schedule 1 is unconstitutional. After delays in the decision it seems it will be given on March 25th now. I see what you are saying though that VHUB should have stuff lined up for that event if it does prove to be a catalyst.
That Senate bill is still just a bill and probably sitting in committee. I think the best chance it has is for Sen Paul or one of the other co-sponsors to add it as a rider to a much larger very important bill. The debt ceiling bill, something like that would work fine. Add that in as a rider and MJ becomes schedule 2.
I wouldn't be itchy on the trigger finger to sell right now. This stock or any other MMJ or vape stock.
http://abcdriveronline.com/marijuana-will-become-federally-legal-this-month/
This is the most in depth and detailed article regarding the Federal US District Court case in California.
Sir, I hear what you are saying. That article is interesting though. It was written by Bloomberg and is simply the information of an interview given by the owner of Magna which is one of several penny stock loan companies. It states that they do make a ton of money giving loans to penny stock companies and that those companies do go into a pps death spiral once these loan companies get shares. Again not my opinion but the information given in a Bloomberg article derived mostly off of an interview with the owner of Magna. This does pertain to LATF as I have noticed they did have convertibles on the balance sheet in previous financial reports. No doubt that those notes did indeed get converted over the Summer and into early Fall.
It is all legal and fine as the article says. The loan companies are not doing anything illegal or anything. It is just good information that can be used and should be valuable for people who do play penny stocks so that they know how damaging convertible notes can be to a company's pps.
I appreciate the discussion. Time for bed for me. I wish you the best.
An OTC company is not supposed to have contact with investors while being dark with financials. Is that incorrect or not?
On Oct 15th the OTC gave the LATF ticker a yield sign. They did this one month before Q3 financials were even due (they were due on Nov 15th). Is that correct or not?
When companies are behind on filing they get the yield sign. If it goes past one quarter they get a stop sign. If the OTC gave LATF a yield sign a month before they were even late on financials and in fact at the time current on financials that would mean that they informed the OTC at least one month ahead of time that they would not be filing. LATF pre-planned it. Is that correct or not?
Looking at past financials I see convertible debt. A few hundred thousand dollars. That debt could have been converted into shares over the Summer and into early Fall. Did this happen? It did happen. I'd estimate 250 million shares were converted if not more. When these loan sharks get converted notes they take the shares and short the stock by using certain MMs. VFIN and Vandham are two of them. Were VFIN and Vandham on the ask much of the Summer and into October? Yes they were. Note converters will short the stock and then cover at PAR. Did the stock hit PAR (.001) in Oct? Yes it did. Did shorting get covered? Well the pps bolted to over .002 shortly after hitting PAR. Did the exact same thing happen in late December? It was almost identical.
I do not believe that there have been anymore notes converting since Oct. That doesn't mean that the note converters are out of shares. I believe they shorted again once above .002. I believe they want the stock to hit PAR (.001) again so they will cover again and I believe this cycle will continue until they are out of shares. Hopefully they will be out of shares soon.
This company has great products and they keep it coming. I really like the direction that they have taken. What people are really wanting to see are numbers however. Numbers associated to what you are talking about. People want to see how well these great new products are selling and at what margins. They also want to see more detail into cost/spending reduction.
The Federal District Judge has postponed. I believe that the new date of the ruling is March 25th. Did you see the news on Monday that for the first time ever there is a bill in the Senate to re-schedule MMJ among other things? The bill is bi-partisan and has 2 Dems and 2 Repubs as co-sponsors. There had been bills similar to this introduced in the House before but never in the Senate. Something to note is that the day after on Tuesday morning is when Judge Kim said she had pushed back the date of her ruling. Seems like the news of the Senate bill made her want to wait?
I saw that. That new Senate bill. It would bring MMJ down to schedule 2. That would allow for it to be researched and prescribed and allow the states to regulate it in the states that want it which will be all of them eventually IMO.
So this would then explain why since Nov 15th the company has put out no PRs, and has had zero contact with investors. On that it seems that they are actually following the OTC rules while being dark on financials. They could update websites and do things such as that like when they updated pictures of their Peyton grow op on their website recently. I do not believe however they are supposed to communicate with investors until they give updated financials.
Bernard, great post. Yes, yes, yes and yes.
Malvern, I absolutely agree with you. They need to kick it up a notch concerning IR and give us some sizzle. I think people want to see numbers. Investors want to see the numbers they have concerning their new product specifically, revs, margins, etc. A little while back they gave some numbers about that new limitless mod. They were good number too. That's the stuff they should be PRing more on.
You are welcome sir,
As of last week I can say that I know O/S were not changed and still 68 million shares. The CEO in his letter to shareholders last week also confirmed that O/S remained at 68 million. They report to the SEC so I take his word for it.
The recent quarterly from a couple of weeks ago discloses the loan terms on page 13 I believe. They are pretty clear. Also his letter was pretty good. As always I would encourage anyone to verify by reading the financials and his recent letter to shareholders.
Take care and best wishes
Sir, I'll give you a fair run-down.
VHUB is currently in a transition phase as they try to develop and sell more of their own products for higher margins. They are fully reporting and make very good products. The business side is very legit IMO. Like all OTC stocks this one has a dark cloud. The dark cloud in this case is debt that they owe as well as being light on capital. They have a loan with Typenex for about 1.6 million. The loan is in 10 tranches and VHUB has used up 2 tranches as of Jan 16th according to their latest financial report. The way I read it is as of Jan 16th they owe Typenex 200k. They can receive up to 8 more tranches. A/S shares increased 7 fold a few weeks ago. Management said they had to as collateral for the Typenex loan. They say they intend to pay back with cash. Currently there is no sign or hint of dilution. Volume is very light as well.
I would advise if you are interested that you read the latest financial report and the letter to shareholders that the CEO PR'd last week. Those two things together will give you the best indication of where the company was/is/trying to be. Read the loan terms that are in the financial statement. You will see how many tranches of the loan that they had used up to Jan 16th. Also you will see that payments begin to be due May 4th. IMO shareholders are safe from dilution at least until that date.
I myself wanted to put some money in the ecig/vape industry. Choices are limited in companies to invest in. When looking at peers VHUB was by far the cheapest. All others that I looked at have been going through massive note conversions or they have limited products or have very poor sells.
In conclusion I selected to put money here because even though VHUB's financials are not great they are better or at least no worse then competitors. There is at least about a 2 month safe zone from dilution. Their products are better then competitors. They fully report. They have real revenues. Most importantly its market cap is 1.4 million which is by far the cheapest I could find of any of these companies. Even cheaper then Rapid Fire Marketing.
Look Big Al, I may not be a superstar IHUB poster or anything like that. I don't care to be either. I just make money. That's all I care about. I'd rather hit my trades then yap on a message board. When the stock was clearly low hanging fruit a couple of weeks ago I bought a good amount in the low .01s. Did I keep them all or not? Did I sell some? That's my perogative whether I did or didn't. Fact remains I'm up a substantial amount from those buys. You have been here awhile it seems and for some time have been a fairly negative poster, but you are here non the less so I would assume you have some interest in the stock. I couldn't care less what someone says on a message board, so whatever you say makes no difference with me. I read charts and financial statements, loan terms, PRs and things like that to base my trades. You have been somewhat active on this message board but clearly didn't buy when the stock was low hanging fruit. Why not? You wasted your time by not executing. Days following the end of the sell off you continued yapping so you obviously didn't buy. My point is simply do what you do, I got no problem with it, I don't care. Just execute and follow through next time. I also see that this stock's market cap is still well below that of the very worst stock in the entire sector which has basically zero revenue (Rapid Fire). That is not the only metric to use but I still find that incredible.
Good day sir I have work to do, don't have time to be yapping here all day.
I just don't understand some folks. Cerp is correct in that VHUB reports to the SEC. If they were to issue shares to insiders then they would absolutely have to report it. Second, it is abundantly clear in the loan terms that Typenex can not get their hands on not even one share until May 4th at the earliest. It is written as clear as possible in the loan terms. All that needs to be done is to read the loan terms. Speculating about stuff that isn't happening and in fact is impossible to happen currently is a waste of time. Finally the CEO can not say in an open letter what the O/S is and then be wrong about it. Major trouble if he were to do that. He doesn't seem like an idiot to me.
Look, and again, yapping on a message board is all good and well. Just make sure that when your strike price hits you make use of the opportunity. I said a couple of weeks ago when VHUB was finishing its sell off it was a great opportunity as the RSI was touching 30. Instead of grabbing that opportunity I feel some here may have let it pass because they were too busy yapping on a message board. What was missed was a 75% gain within just a few days.
1.4 million dollar market cap. It is .5 million cheaper then Rapid Fire Marketing's. I'm still scratching my head about that. Makes zero sense.
That's kind of funny.
I myself bought .02 today. Been trying for under .02, no one ever bites though. I bought shares at the end of the sell off too. I got some .012s, .015s, .018s, now added some .02s. I'd like to have 500,000 if the price is right. Currently have about 300,000.
He has to get the pps up. Seems like he wants to do it legit. Not pumping. Measures were implemented probably a little while ago. He can't go around yapping until enough time has passed before he starts yapping about real progress. At that time it isn't pumping. Results are results and it would be him just stating the results.
I don't know about Monday, but yes I suspect some good sizzle will be coming in the near term.
The Eastern California Federal District court looks to have the judgement ruling scheduled for March 11th. If judge Kim rules that MMJ is unconstitutionally scheduled (sched 1) then it very well may trigger a domino effect (ruling would pertain to defendants only however it would spring load many more court case). It definitely could become a big MMJ sector catalyst. She is a Federal judge, so she yields a great amount of power. Whether I agree or not that vaping stocks should be part of the MMJ sector, it doesn't matter. The market decided that they were. VHUB is even on the MJIC (MMJ index) for example.
CEO letter had no sizzle, but it did have two things I liked.
1) As I had explained several times there wasn't any dilution happening. CEO confirmed O/S has remained the same. No surprise there to me at all.
2) He talked about operational updates will be coming. Sounds like he wasn't pleased at all with the Q2 performance. Sounds like he demands and expects better and has been implementing changes. From the tone I suspect the changes have maybe been effective. I believe the coming operational updates and improvements will provide some needed sizzle here.
Website IMO looks clean, sharp and easy to use. I think I might order something even pretty soon. I'm a smoker that needs to stop and I think I'm going to give vaping a try.
yep, I noticed it earlier in the day when the pps hit the 50 day moving avg the PAR/SAR flipped. It would have been cool to have closed at the 50 dma, but still a good day and week here. Hands by the shareholders here have begun to get stronger and you are right that buyers seem to be showing more confidence. If we can get up above the 50 day moving avg and then have the company put out a little sizzle then I think we have a strong upside coming. Best wishes and enjoy your weekend.
Looking pretty good. I have noticed several vaping stocks have been heating up a little.
BTW, looks like we have no active participating moderator on the MB. Maybe you could take it?
Very reluctantly, yes. Stubborn like a mule but inching forward
Every day things are starting to look better to me since .012. Bid has been steadily rising. Selling pressure has disappeared. If the company were to put out some strong news then buyers will come back strong IMO. For me, I'm not penny flipping this one. I'm playing intermediate on it until I hit my strike price.
Thanks Bernard for that info. Very good stuff. I didn't know about that. As time continues to march forward the MMJ industry will only continue to gain in respect and seriousness. As I have said the two MMJ indexes are very low. They are close to two year lows and even kind of near all time lows. Every time any MMJ tries to even pick itself up and even try to even have a mini-run it just gets slammed back down. The sector will not stay at these levels for ever. MMJ is only gaining traction. I combine the vape and MMJ industry together because they trade together and many vaping stocks are on the MMJ indexes. VHUB is on the MJIC for instance. I see articles on big money investors wanting in. That is good but they don't pay up for anything. Which is why I believe that the sector is being bleed dry for now. One thing I do know for sure is that the whole vaping/MMJ sector will run again big. What I don't know is exactly when.
Look decent today. First time in awhile I've seen the bid at 2 cents or higher. I really think those buys in the .01s are going to pay off nicely.
Sorry meant to say endorsement deal, not enforcement.
I think what will happen here is that it sits at this pps +/- .004 for maybe a couple of weeks. The PAR/SAR needs time to drop. The PAR/SAR looks like it will hit about 2 cents in 4 or 5 more trading days if the pps stays in this range. By then also traders will have been able to see some time of stabilization and will feel better about buying in and we will get stronger bid support. It seems that Al and Nebula from some of their posts think that the company will put out some "sizzle". I agree with that and I believe they realize that they need to. It will be some sort of good news that the market will really like. It might be an enforcement deal or a distribution deal or something like that. This will come IMO next month or in April. My guess is next month, then more follow on news in April. With good news this goes back to 4 cents or so. Great news then it goes past that, maybe 10 cents if it is great. I predict a confirmed reversal and uptrend within 3 weeks. The company will need to add the sizzle while keeping it real and I predict the pps peaks in April. Along with that if there is another one of those huge MMJ/vaping sector runs then all bets are off on how high this could go. During those runs the gains in these stocks is absolutely ridiculous, parabolic supernovas. There is a chance we see another one of those sector runs. There are catalysts out there that could cause one, you just never know.
There is one metric that I still am having trouble believing. That is that VHUB from what I can tell is the cheapest vaping stock as determined by market cap. I have said it before and I have looked at it twice because it is so hard to believe but VHUB even has a smaller market cap then Rapid Fire Marketing. 1.4 mil vs 1.9 mil.
That I find astounding. Sure I put some money here. They are a reporting company with good revenues (for a penny stock). They have very good products. The chart said buy when it had an 80% sell off the last two weeks, and it screamed buy once the RSI touched around 30 at .012 cents. Penny stocks are different animals, but buying in way oversold territory, buying when the market cap is a lot lower then what many think is the worst company in the sector (Rapid Fire), and buying when the pendulum swung to the extreme cheap side will usually work out pretty well.
Risk/Reward is heavily dependent on the pps that you buy in at. As several have said when A/S were increased 7 fold risk/reward was changed. I say though that once the pps dropped 80% afterwards the risk/reward changed back. Right here and right now I can't help to be very bullish on VHUB.
FYI, the Cali Supreme Court case isn't the one I am watching in regards to the MJ/MMJ sector. I am watching the Cali case that Kim Mueller is deciding. She is an US district court judge. What she rules could effect the DEA, FDA, and so forth.
Alaska too, next week.
It was a nice pivot day and a good close. Over 100K shares near the close was nice.
Hats off to Lakingspahn, good re-entry sir and nice call earlier in the day predicting the close. I would also like to remind everyone again to keep in mind that VHUB (a legitamite reporting company) has a current market cap of .5 million dollars less then Rapid Fire Marketing(a company with no revenue and very shady). That will not remain. It will be corrected.
Everyone enjoy your weekend and lets get back at it on Monday!
Hi Bernard, good day to you sir.
You are correct on point number 1.
You are a little bit incorrect on point number 2. The 200k total they owe Typenex are 2 separate tranches. It states it in the Q2 filing. It is in there, read from page 13 and continue. See how they talk about on January 16th they received a second tranche for 100K. Back to the loan terms of that loan it is stated 10 total tranches are available. The first 2 at 100K each and then 8 more at 150K each. The balance sheet shows the 200K so that would mean they accessed the first 2 tranches and as I said they even state it just that way after page 13 in the filing.
I think it is very important for the pps to increase for this company. If they did have to dilute after May 4th it would benefit the officers and the company as well as the shareholders to have the pps higher because that in turn means less shares that would be needed to be converted. I like how Nebula says it that the company needs to put out some sizzle while keeping it real. I believe that they will do just that. A stronger share price gets a lot of pressure off of the company's finances. I'm not talking pumping either. No one wants that. I want good solid factual PRs. They have that ability, very good products to showcase.
One important metric when investing is comparison to peers. I have to say VHUB is very under-valued compared to its peers. VHUB's peers have market caps of 4-5 million, some have 10-20 million. Are they financially any better? No they are not. Which in the sector are making a profit? None, at least VHUB was able to get a small profit in Q1. Are their products any better? No they are not. Are the competitors currently diluting shares? Yes many of VHUB's competitors are, but VHUB is not at this time. The very worst stock in the sector by the opinion of many is Rapid Fire. The "s" word gets used at lot with them. Their market cap is 1.9 million. VHUB right now has a market cap of 1.4 million as of close today. So the very worst stock in the sector, who not only doesn't make profit but doesn't even make revenue is valued a half million dollars more then VHUB? That does not sound correct at all. The sell off here was so steep that it created a situation where a legitimate, reporting company with revenue and profits even in Q1 is valued half a million less then what many say is a company that is very scammy (Rapid Fire). If I even compare VHUB to vapor group for instance that doesn't match up either. vapor group now has probably around 2 billion shares outstanding by my estimates. At the closing price today it puts their market cap at about 4-5 million dollars. Does vapor group make a profit? No they don't. Do they have way higher revenues? No they don't they are similar to VHUB's. Why is VHUB 1/3rd their value. This does not add up. I could keep on comparing but VHUB will be shown to be even cheaper if compared to others.
There are many metrics to look at. Fear is not a metric, but fear drove this down way too far. The risk/reward, market cap, and comparison to peers makes VHUB the cheapest and best buy in the whole sector currently. That's how I feel about it at this moment. Stocks trade to extremes both up and down and especially penny stocks. Extremes get correct however, even in penny land.
I give it to you as straight as I can. Their fiscal year starts July 1st, so right now is the 3rd quarter. Q1 they had about 1.3 mil in revs and a small net profit. Q2 they had about 1.1 in revs and a net loss of a couple hundred k. Currently they have used two tranches of a loan, each tranche 100k. The loan is with Typenex, and again they currently owe them 200k. Officers have also lent to the company at a zero interest rate. They also have a loan through a bank, but that doesn't look like it is convertible. It looks like a regular revolving loan. The loan with Typenex is the one that scars people it seems. The loan terms are clear. It states beginning on May 4th 2015 Typenex can convert, it is also when payments begin to be due. Right now as it stands they owe them 200k and payments beginning in May are 35K a month. I wrote a post that breaks down the loan terms clearly on Feb 17th. Currently and for the next couple of months there is and will be no dilution. May 4th that could change.
The company looks to have very good products. When comparing to its peers it seems undervalued. The current market cap is about 1 million dollars which makes it the cheapest stock in the sector. It may even be cheaper then the worst stock in the sector (Rapid Fire Marketing). Others like vapor group have been diluting. It just had a very nice run recently BTW. There are bigger companies like m cig and e cig but I think they are over-valued. There are others out there too but honestly VHUB looks to be a cheap solid company compared to its peers bottom line. It is down about 75% since reaching a recent high and is down 9 out of 10 days. Sell off was due to them having to raise the authorized shares about 7 fold as collateral for their Typenex loan. Also because they say they will give their employees some incentive awards. If they do the shares will be restricted for 6 months like all penny stock companies do.
At any rate that's what I have as straight as I can give it.
Outstanding. I see Mekonza has brought in 82 shipments of very expensive seafood in a calender year. Those import/export websites get their data from US Customs. Also seeing many shipments for Global Trading Group which is also Mekonza. I can't wait to see the next financial report.
Nicely done. I'm looking here thinking this will now be sideways for a little while +/- .004 or so. As Nebula says if management is up to snuff then solid news could be brought out to help matters out here. The risk/reward was changed with the increase in A/S however it was changed back with the almost 80% pps drop afterwards, so back to where it was a little before the new year. I think most likely it sits around here for a little while allowing the PAR/SAR to fall.
I hope that they bought at .012 when the RSI was little over 30. I like to see people make money. People who yap on a message board are obviously interested in the stock. Some will put in a lot of time yapping on a message board but they don't execute the opportunity when it is there. Hopefully the folks wanting shares picked them up. As I said I like to see people make money. Shares bought at .012 could right now be sold for a 25% gain. I of coarse think the stock will be at much higher levels within the next couple of months however.
When the RSI hits 30, VHUB will bounce. I've been playing these too long. It happens over and over. It's like watching the same movie again and again. Never a guarantee but a high probability. Yapping on a message board is fine, just make sure you buy the opportunity when it comes. I make money on penny stocks a high percentage of the time. The key is to not be greedy. You don't have to try and buy right at bottom. These move fast and sometimes you miss the bottom. Buying close enough to bottom works fine. When these move they move hard. Greed will have people miss a good deal because they feel they have to buy right at bottom. Some get it right and some don't. Close enough works though. Also when you have a nice profit, sell and take your profit. Greed gets people on both side of the trade. Have fun and make some money, those are my goals.
Good summary of DC and I agree. I think VHUB will stop the bleeding once the RSI hits 30 or goes slightly under it. That would be about now actually. Then sit around and not do much as the PAR/SAR comes down. After some time of that it will head right back up.
I hear ya. If two totally separate MMJ indexes (the Benzinga 420 and the MJIC) both have LATF as a participant then they must be part of the sector. There isn't a ton of MMJ stocks that are on both of the two indexes.
At any rate LATF looked strong today. Hardly any sells and a lot of buys. I think this sector gets moving soon and LATF along with it seeing as it is part of both sector indexes. Did you know that the sector indexes are at around 18 month lows. The Benzinga 420 MMJ index for example has an all time high of 1010 and an all time low of 70 and is currently around 120 or so. Also it is down 10 months in a row. Gotta turn around sometime, just need some catalysts and I believe they are coming.
I was replying back. I see that they are on both MJ indexes. I would assume they must be part of the sector then? That's why I put it in the form of a question because I was asking why he didn't think it was.
Why not? I thought they were part of the sector? They are listed on both the Benzinga 420 MMJ index and they are listed on the MJ Index (MJIC).
I have a few possible reasons that the sector might have a nice pop soon:
1) Retail has money to spend in March. Some take their tax refunds and speculate with them.
2) Last week of February Alaska law gets implemented
3) Recently the drug Czar said he backs DC being allowed to implement their law. I did some digging and found out that the city council found a loophole to be able to implement. Congress has 30 days to stop it but there doesn't seem to be any will to do it. The 30 day clock stated a little while ago. I don't know when exactly and am still hunting for when the clock actually started but it looks like DC will implement their law just after Alaska does.
4) Surgeon General of the USA admitted that MMJ has medical purposes. He then went on to say that do to its scheduling it is difficult to acquire the necessary data and research to study it fully know what medical benefits and such. The key is that for the first time a Surgeon General said that. Then the Health and Human Services Department promoted what he said on their Twitter account over the weekend. This #4 is very important, it leads into #5
5) Kim the the US district judge in Cali says she's going to give a ruling within 30 days. Now remember the whole reason legally that she said she took the case. She said she took it because of what the Supreme Court said in 2006 in a MMJ ruling. They said the Federal government has the power to make and keep a dangerous drug schedule 1 but also said that if MMJ were to in the future through research, data, technology show scientifically that MMJ does indeed have medical benefits then having it on schedule 1 would certainly be an issue constitutionally. That statement is the whole reason she said she took the case because there is now more data since then. Now check out what #4 just did for ol Kimmy. It just gave her cover. The question that us as investors are interested in isn't are the defendants guilty or not. Are they guilty in regards to it being a scheduled 1 substance and can MMJ even be sched 1 now constitutionally? Thank you Surgeon General.