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Some solid and thorough DD between your posts yesterday and today, I've enjoyed reading them. For folks that are thinking about initiating positions in VATE, they are great places to start.
A healthy day for VATE
As I've been saying the last couple days now (hope I don't sound like a broken record) the critical levels to hold from my charting perspective are .046, .054, then .069.
Despite heavy profit taking in the morning, which I didn't find shocking, VATE rebounded nicely and closed at .0465 - holding that critical level. I think that's telling in terms of the longer term chart analysis.
Volume continued to stay impressive, falling just short (200K shares) of it's 4th straight day of 10M+ shares traded.
I'm excited to see what happens tomorrow and over these next couple months.
If the business plan is executed successfully then there wouldn't be a need for a reverse split and the company would be able to use excess capital to outright retire shares.
Ah I misunderstood, thanks for clarifying.
To that end though, the entire landscape of VATE has changed. They are more matured, more refined, and targeted. They've rid themselves of 02 Breathe and One Utopia - business lines that didn't add value. They've fully acquired LLP Cold Brew and Blessed Bean, owning the manufacturing process of their coffee lines from end to end.
Their sales have increased dramatically and product adoption has gotten stronger. The launch of their new CBD beverages have by and large a success.
Their distributors have grown and continue to grow, they are not just isolated to Amazon.
They are in additional boutique grocers and food shops. Their new CBD beverages have also made it into new markets.
I'm not one of these folks pumping a dollar SP, I'm far more reserved. My target is $0.16 - $0.20, barring any major distributor news and/or deals.
For a long, yes, there are rampant buying opportunities presenting themselves.
Don't penny wise and dollar foolish. At .04 there is still easy room for a 3 - 4x gain by year end.
You are not making sense.
April 30th - closing price .0286
May 21st - closing price .0478
May 10th - closing price .03
May 21st - closing price .0478
Point out to me the 80% decline
Buying opportunities galore today.
Using closing prices, from April 30th to May 21st, VATE is up 67.43%.
From May 10th to May 21st, VATE is up 59.33%.
A little pullback as gains are realized are natural. And don't forget there are folks that day trade this. I'm sure there are people out there that were buying at the intraday highs yesterday in the .053 to .057 range and are now cutting their losses.
Opened at .04925, bit of a sell off into the .046 level ... with just over 500K traded in the first few minutes of the day.
Been long for 10 months and enjoying watching this train get a full head of steam.
Good read! Thanks for posting.
I'd agree with you Phunny here. When we look at the 2018 Annual and the Q1 2019, we know there is no longer an LT debt or convertible note.
That led me to believe that the 50M~ shares we saw added had to be isolated to the ramp up of acquisition, production, and distribution.
Let's not forget the spin out of 02 Breathe, LLC & One Utopia - nor let's not forget the complete acquisition of Blessed Bean and LLC Cold Brew .. I imagine there were some negotiations in terms of share buyouts and/or payouts for those divestitures and acquisitions.
I think we have an excellent trajectory in 2019, all things being equal.
Not sure if you've seen my last couple posts but I've seen .046, .054, and .069 as our largest hurdles.
.046 was easily taken out / .054 has been getting some great churn (an intraday high so far today of .0571).
From there I see fairly smooth sailing to .069 where we'll meet our next test.
Given these volume levels I'm confident we will be successful in breaching .069 and keeping momentum forward.
While it took a while to get this train moving - it's officially left the station. No long term debt, no convertible debt, manageable share structure, 3 active distributors and 11 in the sales channels, will exceed 2018 revenues by the mid year mark and on pace to breach 7 figures this year ...
... I could go on and on, but I don't think I need to tell you that!
Incredible volume on VATE in the first 25 minutes of trading with 3.3M shares.
.054 level is key and then were off to the races before being tested again at .069.
Loving to see this churn.
The 16th was a great trading day to get into VATE. The volume was strong and you are most likely in the green for somewhere between 27-35% depending on your entry.
Those that have followed VATE for the long haul have been keen to point out that anything under .04 was a gift and an opportunity to easily make a 4x+ ROI.
It took a while for VATE to get their ducks in a row, but after the Q1 numbers, launch of their CBD beverages, ownership of the manufacturing line from bean to finished product - VATE is hitting their stride and 2019 in particular is without a doubt going to be their breakout year.
Looking at the YTD chart and boy is it shaping up nicely.
SMA(25): $.0324
SMA(50): $.0331
SMA(100): $.0351
The the 25 day moving average is soon going to over take the 50, an excellent signal.
I previously saw .046 and .054 as critical levels. We held that .046 level steadily yesterday and so long as the next couple of trading days continue that and we should start to clear low .05s. From there, it's pretty smooth sailing until .069 where this will be tested again.
Very optimistic here.
VATE hovering around the .048 is an excellent signal.
My interpretation of the charts shows .046, .054, and then .069 as key levels.
If VATE is able to break and hold each one of these levels and establish a new base as I believe it should, we will slowly but surely work our way into the teens.
Exciting times ahead with a company that has no long term debt, no convertible debt, solid share structure, and one that should become cash flow positive in Q2!
1st quarter results were posted yesterday at about 3:30pm on OTCmarkets.com.
Woof. Do some DD.
I understand where you're coming from, but we use our CCs at the pump because there is value in getting that cash back / points.
When a company issues shares for services rendered, they are doing a disservice to themselves and their shareholders. They don't get a 5% cash back or points for issuing shares. They dilute their stock, which affects the shareholder, their market cap, and their financial statements.
I guess what I'm saying is that it points to a systemic mismanagement of cash on POTN's part. When your company takes in $25.5M in annual sales (2018), but you still need to issue shares to cover a $27,000 website overhaul, there's a mismanagement of cash taking place.
Yes I understand that, I read that in the disclosure statement. Nonetheless, it again points to that POTN is not cash flow positive and has to continue to issue shares (be it restricted or unrestricted) to finance their ongoing operations.
When a company has to issue shares for services rendered in lieu of cutting a check, it points to unhealthy underlying financials.
Example - the most recent issuance of restricted shares to "Yuka E-Com". This is likely an issuance to the company that revamped their website to promote their ecommerce sales/business. Why would POTN issue 171K~ shares for payment instead of just cutting a check for $27,000?
POTN's products are great, my wife and I regularly use them. However, in my opinion, they have been steadily losing credibility as an investible company.
I rode that first wave from the single digit stock price explosion and did very well here. I also made the mistake of getting back in at the mid 20s not too long ago and am down over 50% on that investment. I'll be cutting my losses and moving on.
Liabilities dropped yes - however, gross profit increased only $35,000 YoY BUT NET PROFIT actually decreased YoY from $193,000 to $51,000.
The only thing this company has to hang it's hat on right now is it's SEC compliance and uplisting in a couple months.
Otherwise the story is the same. Revenues basically flat and dilution occuring.
Basically flat. 100K lower than Q1 2018.
Past performance is not indicative of future performance.
What we know now is completely different from what we knew then. What's stuck in stone now is that the company has no long term debt, no convertible debt, and is pacing to become cash flow positive.
We know that VATE is likely to eclipse their entire 2018 revenue by the mid year mark of 2019. We know their new products are in shelves and selling. We know that new distributors are coming.
The landscape has completely changed and the underlying fundamentals of VATE continue to improve.
Lol - I'm sorry what?
Since May 1st, VATE has appreciated to an intraday high today of over 52% and is currently trading at an increase of about 42%. A little bit of pullback over that period makes perfect sense.
Since May 14th, VATE has pretty consistently legged up higher. We nearly hit .045 which is significant as its YTD high is .046.
Volume indicates growth and accumulation is taking place. Let's wrap our heads around that for a bit.
It's been good to see more folks getting involved!
I've had 400K~ shares at a break even of .04 that I've been sitting on since the end of July 2018. I didn't sell when it peaked at .07 and unfortunately, didn't have the cash to double my position when we were at .028 - .03.
There's too much momentum in this company. Their margins are bar-none excellent. They are just starting to hit their stride in growth. I'm looking forward to watching them become cash flow positive and break the 7 figure revenue mark.
I'm more than happy to sit back and reap the benefits of long term capital gains on VATE!
.043s clearing!
.04s getting cleared!
Incorrect. Do a tiny amount of work and go to OTCmarkets.com and read the disclosure. It's 5 calendar days. Will be posted today, likely after market close.
Interested to see how VATE shakes out over the course of this week. The annual report and Q1 report were nothing short of spectacular.
In terms of Q1, gross margins are outstanding at 76%. Yes, there was still a small net loss for the quarter, but given their margins and sales trajectories, I believe this will be an easy hurdle to overcome throughout the year.
Q1 2019: $166,308.82
Q2 2019 (expected): $325,00~
Q3 2019 (25% growth QoQ): $406,250~
Q4 2019 (25% growth QoQ): $507,000~
In all, VATE absolutely has the ability to smash their 2018 numbers by the mid year point. I believe they are on track to do somewhere between $1.2M and $1.6M in total revenue and I also believe I am being conservative. If their new beverage line takes off, we could see between $1.4M and $1.8M.
In total, I think from a top line perspective, we are going to see at least a 300% increase YoY.
Agreed. Just paying close attention to their income statement in total. Would like to see improved gross margins and would like to see their sales+marketing expenses come down dramatically at this stage as well.
They've got a very recognizable national brand that was built out throughout 2018. We should finally start seeing that ROI coming in on the millions they've spent on advertising, roadshows, and overall brand awareness.
I'm hopeful it's prior to market open, though won't be shocked if it's after market close either. Really hoping to see something like $7.5M - $10M in revenue for the quarter
Ha, I agree ... and believe me if I had the free cash, I would take that without hesitation!
Yahtzee!
Huge block sitting on the ask though at .04 -- hopefully buyers will continue to see how undervalued VATE is to take it out!
Couldn't agree more. The .04 mark is the biggest hurdle
Pay closer attention to their extension date. The filed for a 5 calendar day extension on 5/15, so they have until 5/20! We'll get those numbers sooner than we had hoped.
1.6B shares outstanding. Decreased revenues, decreased profit. Solid net loss versus a previous net profit. All from Q1 2018 to Q1 2019.
Saw this company on the breakout boards list and will be staying away. What a dumpster fire.
Strange.
The Quarterly statement that was posted has a year end 2018 Income Statement on page 26. The numbers that are stated there are different than the 2018 Income Statement on page 11 posted on the Annual Report today.
Thanks for the information you continue to provide to the board, I appreciate your analysis (both negative and positive :) )
I'm with you all the way. That being said, could you point to any reference material where POTN said they woudl address the note holder resolution?
I'm curious if they'd be addressing only the pending litigation or if they would speak to the convertible debt.
Frankly the convertible debt is the only one that matters. If that was not on their books, this company would likely be in dollar range already.
I don't disagree!
Between my retirement account and my brokerage account, I've got about 375K~ shares probably at an average of like .043~.
Really wish I had the excess cash to invest when VATE was hover at .03 and .028, those were absurdly low, even more so now given the 2018 annual and Q1!