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I guess San Diego doesn't read this board otherwise they would have stayed away from this scam, no?
And if we annualized this Q's EPS, we get .0376 and with a 27-33x we'd be around $1.015 to $1.24.
But how many of those companies can or will see growth like Bidi Stick? Companies like Phillip Morris are gigantic and will only see single digit growth per year. Bidi Stick has the potential to continue growing single digit, if not double digit every quarter.
If we went from 2 distributors to 8, and now we're shipping to guam, and retail chains double in the US, and we have more international presence in the coming months, it seems 27-33x is low. The market needs a place to put their cash for growth, hence why companies like TSLA are trading at a 121 future P/E, or Beyond Meat @ 221x.
Seems to me if a company can show strong increased revenue and profits, quarter after quarter continually then we'll see a much higher multiple.
I think 10-15x is way too low for a company that SHOULD be growing quick based on expansion internationally and more distributors.
The S&P right now is 29.12.
Seems like a pretty big overreaction from a 44% increase in revenue Q over Q. Yeah we all expected more, but it's not like we're trading a stupid valuation.
I just reached out to them and got a response...
It was an error from last Q2 that has been corrected in this Q3 filing.
We may file an amended Q2 in the near future
However according to our audit firm since we have corrected everything in this Q3 filing and due to:
- Working capital still positive
- Net income still positive
- EPS remains the same
...the audit firm tells us an amended Q2 is not required at this point. However, we apologize for any confusion this may have caused any shareholder.
I don't expect an R/S.
I'm pretty surprised by the action today. Yeah we didn't get the $50M or $100M revenue we all wanted to see, but the company remains profitable with growing revenues. It's like everyone ignored the comments about growth and sold.
Oh well, this is a long term hold, and I'll buy more.
So trading around a 17x, which seems light if they are about to be added to another few thousand stores and expand internationally.
Look at the dates.
Annualized based on the new O/S we're looking at a .037 EPS.
Guess folks expected better results? I was expecting higher, but I don't think this is a bad quarter.
I won't say they won't file an extension, but I have a hard time believing they will completely miss the deadline and then be downgraded to pinks.
They have put a lot of work in to get this far and the last thing they will want to do is go back to the pinks and start that process over again.
I disagree with both.
1) Sounds like you believe they are doing something shady and need to avoid any scrutiny but Bidi Stick has implemented age verifiers, and also have their Bidi Cares recycling program.
In fact, from my DD, Bidi Stick is actually pretty rare given that you know who the actual owners are vs these fly by night vape companies, which I'm sure most didn't submit a PMTA, and if they did, no where near the scale Bidi did.
2) PMTA's original deadline was May 12 and it wasn't until early April that that was extended until September. So to say retailers aren't stocking up because of the September PMTA, would also mean they weren't stocking up for the May deadline, which based on $23M revenue by end of April tells me otherwise.
The only explanation I can make for low numbers is if the revenue from Q2 was mainly from retailers/distributors stocking up, and Q3 being low because they didn't have much success selling.
We should know by Tuesday though, but always good to discuss the possibilities.
You thought they'd post similar numbers to last quarter despite being based on only 1-1.5months?
The market maker files on behalf of SOLI.
The problem is SOLI is delinquent so filing a 211 now won't be approved until they are SEC current (finalize and file financials).
I don't think anyone said we are waiting on the SEC. We are waiting on the company to complete filings, so we're waiting on the accountants.
SOLI is trading on the grey sheets until the company files a form 211 with a market maker.
Believe it's 9/15.
That's a good question. My guess is financials aren't complete yet, and as soon as they are it will be posted, but honestly I can't say for sure.
It's 2 million dollars, not shares.
If we compare to when they posted last time then yes we should have seen them, but my guess is with everything going on and the fact they just sent in their PMTA, which was over 250,000 pages that we'll see it closer to the SEC deadline.
Need the financials before 211 can go through.
The $2M most likely is for insiders/friends/family or some entity.
That's my question though, because who in their right mind would say, oh I'm going to put $10k minimum into SOLI's private placement even though they are SEC delinquent and on the greys. The answer has to be because something is about to transpire and buying on the open market would be considered "insider trading".
I don't see any other plausible explanation, because good luck getting any money out of a PP on the grey with no volume.
Time will tell, I'm just trying to think out the purpose of the PP this long into being on the greys.
I know a lot of the folks that continue to post either aren't shareholders or are very annoyed with current management, but regardless, I'm curious what everyone's thoughts are on the form D.
Who in the world would take part in a private placement of an SEC delinquent, grey sheet stock? The better question is, why would SOLI even waste money to file it knowing they are delinquent and on the grey markets? Most companies on the greys may post some PRs about uplisting shortly and what not, but I can't find many that actually file SEC forms acting like it's business as usual.
In my opinion, as a shareholder, something is going to happen shortly. The PRE-14C and now the form D, just seems very coordinated and we're just waiting on the final pieces tying everything together. The company has been very active it seems, but obviously the stock hasn't. The SEC filings, to me, show a company moving forward. I do not blame the company for not talking to shareholders, I think it's smart despite how painful it is to watch TDOC or other telemedicine companies get huge funding.
Also as a side comment; for all those that claim insiders are dumping, I don't believe that. I'm pretty sure insiders can't sell more than 10% of the volume on any given day, and based on the total volume we've seen, that wouldn't give them much to sell. Additionally, the unrestricted share count history shows an overall reduction since SOLI/CareClix buyout, so who benefited?
49,087,000 - 02/26/2019
36,480,500 - 07/09/2019
36,906,672 - 01/07/2020
37,283,803 - 02/25/2020
37,377,581 - 04/08/2020
37,272,038 - 08/25/2020
That is as of 9/1. Since then 180M+ shares have traded.
It's very unfortunate what they did here.
It's churning well right now, and once we see the impact of the next quarter, there is no telling where we will churn next.
Just to add on to my last post, it's like if someone in AAPL, with 500M shares or something crazy had to bail and hit the market. It might drop it a huge percent, but fundamentals will kick in and lift it back up after that supply is done.
I wouldn't worry about the share price and sellers; I'll tell you why.
KAVL produces revenue and net profits.
That means you can assign a valuation to it. Let's assume worst case scenario and KAVL only does $25M per Q. That's $100M for the year, and assuming same margins about an EPS of $.05.
Multiply by P/E Ratio:
10x P/E = $.50 share price
20x P/E = $1.00 share price
30x P/E = $1.50 share price
So regardless of short term demand, heck, if someone market sells 5M shares and we go down to .10, that is a great opportunity to load up because we know based on the above valuations we should NOT be trading at $.10.
Keep in mind, our financials are audited and we're an SEC filer. We aren't like ZHU* who seemingly has tons of assets/revenue yet can't manage to catch a reasonable valuation.
Exactly, when Altria picked up a chunk of JUUL, it was because they were growing quickly for a bit, and this was before any regulations started hitting.
Now it's way too risky for the big boys.
Altria only bought a portion of JUUL, not the entire company.
KAVL would still be in the mix I'm sure, just not sure what extent, but I highly doubt any large corporation makes a pass at Bidi Stick until they see how things play out regulation wise.
Seems too risky to be stuck with another Juul and have to write down billions.
You're thinking a bit too far out imo. We're a company with 1 quarter of financials so far. Let's see what the next Q does, and the next Q, if they are growing then they may be a target.
$40,000 bid at .79
Do we need more proof that KAVL and Bidi Stick are the real deal? The below excerpt just oozes greatness!
The application detailed 11 flavored varieties with nicotine concentrations of 6% weight/volume as part of the company’s proprietary e-liquid formulation. Starting from a science-based foundation, Bidi™ Vapor has engineered its electronic nicotine-delivery system (ENDS) products using its own patented technology, ensuring quality control and assurance from the raw chemicals and components purchased through to the manufacturing process in a cGMP (current Good Manufacturing Practice) facility. The product then goes through various in-vitro and in-vivo toxicity testing (including genotoxicity tests) at a GLP (Good Laboratory Practice) approved lab, as well as HPHC (Harmful and Potentially Harmful Constituents) analysis of both the aerosol and e-liquid in ISO 17025 certified labs.
Possibly the largest submission compiled across all ENDS manufacturers, Bidi™ Vapor’s application runs over 285,000 pages, providing science-based evidence demonstrating that the Bidi Sticks are Appropriate for APPH
Summary for any new comers.
#1
Today (9/8/2020) Bidi Vapor (Manufacturer of KAVL's main distribution product) filed their PMTA which per the link below means that they'll be able to sell product for AT LEAST the next year, seemingly regardless of approval/rejection.
https://www.convenience.org/Media/Daily/2020/Sept/2/1-FDA-Announces-Decision-Publish-ENDS_Operations
#2
Per the bottom of the PR, KAVL may have hired a firm to increase awareness for the company.
Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com
https://www.otcmarkets.com/stock/KAVL/news/Kaival-Brands-Innovations-Group-Inc-OTC-KAVL-Announces-PMTA-Submission-by-Bidi-Vapor?id=273269
#3
First quarter in operation KAVL generated $22.5M in revenue. Based on timing of agreements and when the company commenced operations, it's possible a majority of that revenue was in 1 month. We also only had 3 main distributors at that point.
The next quarterly will be a full 3 months of operation, and instead of 3 distributors, we now have 8.
#4
We know the company is expanding outside of the US based on new website domains plus it was also highlighted in the O/S reduction PR; internationally into the European Union, New Zealand, Australia, and Canada.
https://www.otcmarkets.com/stock/KAVL/news/Kaival-Brands-Innovations-Group-Inc-OTC-KAVL-Announces-Cancellation-of-Shares-of-300000000Common-Stock?id=271587
#5
The company has been very shareholder friendly so far; moving the control block of 300M common shares to preferred and unable to convert back until 2023.
Their stock incentives aren't fully vested until 2023 and another incentive requires the company to generate $1B in revenue.
#6
Based on a 12.5% net profit margin (per the latest Q, and annualizing the potential revenue) with a 30x P/E multiple the below share prices are possible.
$50M of revenue per quarter = $2.70 per share
$75M of revenue per quarter = $4.05 per share
$100M of revenue per quarter = $5.41 per share.
That's based on a 30x multiple. If we continue to see growth/expansion, we could be double or triple that. So take the share prices above and double/triple them.
TLDR: KAVL IS WAY UNDERVALUED.
Not sure if anyone else noticed, but at the bottom of the PR it says...
Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com
I wonder if KAVL hired this group to help bring eyes to us. This is the first PR where they are listed at the bottom that I've seen.
Looks like we still have folks that don't understand KAVL. Keep selling so we can get rid of you here.
Block them, worthless information.
Hasn't happened since June.
Highest day was 1.67M, let's break it!
Earnings right around the corner. Last Quarter was 22.5M revenue in 1 month, now we have 3 months, we have 8 distributors vs 2. No way we don't see at least double the revenue!
Chart looks a lot better now, higher lows, now we just need a higher high.
And let's not forget, earnings are due within the next week.
Would love if this is the start to multiple PRs explaining progress. We need the eyes!
Can't be much more left given the recent updates. I hope haha
“For those who believe, no proof is necessary. For those who don't believe, no proof is possible.”
- Stuart Chase
Is that burden on me? I'm not trying to convince you to buy so I can care less how many greys uplist, don't uplist, die on the greys, etc.
So what are you trying to accomplish?
Quietly being accumulated.
We'll see that change and then 40-50% days will be nice to see :D