Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Here's a link to the text of the proposed rule, which hasn't been linked to before on here. I haven't figured it all out, except it has some good and bad but certainly mostly bad:
http://public.health.oregon.gov/DiseasesConditions/ChronicDisease/MedicalMarijuanaProgram/Documents/333-007,%20008,%20064%20PROPOSED%20text_FINAL.pdf
Also mandated:
1) Regulators are REQUIRED to assess the cost of testing and how it will affect market prices; and
2) Regulators may not adopt rules that are more restrictive than is reasonably necessary to protect the public health and safety.
Yeah, the 8k discusses current temporary rules putting a downward pressure on revenues. They went into effect in December and were renewed in March.
There are PROPOSED rules that will be even more harmful to labs as there will be fewer tests required. And it's not just the 20% number that is scary. Concentrates testing could be reduced too. Dig into it.
"but we all know pps is only gonna go up..in the WEEK over WEEK models "
This forum hasn't dissected the proposed regulations. Gamblers don't care though.
No, that's not correct.
Proposal: "Adopt a rule that allows at a minimum 20% of batches from OLCC licensees to be tested for pesticides." Source: http://public.health.oregon.gov/DiseasesConditions/ChronicDisease/MedicalMarijuanaProgram/Documents/333-007,%20008,%20064%20Need%20and%20Fiscal%20Impact.pdf
Read that whole document: "Reducing required testing for marijuana processors could have a negative economic impact on accredited and licensed laboratories."
What is a batch? https://www.oregon.gov/olcc/marijuana/Documents/Rules/OAR_845_025_5700_MetrcGuide.pdf
Batches are flower, not edibles.
Yes, testing is here to stay, but it surely matters whether it's 100% testing like it used to be, or 33% like it is now, or 20% like the proposal is for the future.
Article from today about the proposed changes:
http://www.weednews.co/oregon-marijuana-testing-still-controversial/
The belief that things will go back to the way before the temporary rules is not consistent with current events.
Look at what is happening now. The lobbyist for the labs is holding two public forums next week to mobilize people against proposed testing rules changes. You can attend on April 27 in Eugene and April 28 to voice opposition to the rules changes. https://www.facebook.com/pg/orpublichealth/events/
There's an effort to mobilize folks through the public comment process: http://www.occnewspaper.com/contact-oha-and-tell-them-we-want-safe-cannabis-in-oregon/
This meeting of the Joint Marijuana Committee features a presentation about the proposed regulations, with discussion about how testing affects prices in light of the legislative mandate that "the authority: (a) Shall consider the cost of a potential testing procedure and how that cost will affect the cost to the ultimate consumer of the marijuana item; and (b) May not adopt rules that are more restrictive than is reasonably necessary to protect the public health and safety. [2015 c.614 §92]
: https://olis.leg.state.or.us/liz/2017R1/Committees/JMR/2017-03-14-17-00/Agenda
One state senator says cannabis testing should be like tobacco testing, which I assume means less rigorous. Other legislators say they prefer to err on the side of safety. But these folks won't be making the actual decision.
I think this bill, which could have hurt us tremendously, appears to be dead, so that's good news: http://gov.oregonlive.com/bill/2017/SB875/
Good luck to all.
The January numbers for Oregon that are repeatedly, repeatedly cited here.... in what month of the year do you believe the testing for that marijuana took place?
Remember this 8k?:
" Q: Has the Company experienced a reduction in revenues with the temporary testing rules in Oregon.
A: No, the temporary testing rules have not negatively impacted our revenues. These “temporary” rules have allowed for additional smaller producers and processors to participate in the market off-setting any reduction in testing volumes enacted by these rules."
We got two sentences to explain some complicated things that happened, but my understanding is that the old rules required that a test be done for each ten pounds, but the temp rules required tests for every 30 lbs. Please correct me if I'm wrong. Aren't these "additional producers" simply people who didn't have proper licenses, and therefore no product, during Q1.
I bet same-lab SGBY revenues will only be marginally higher in Q2.
We have already seen the SGBY revenues for when Oregon sales were 7x higher. Those tests were done in October and November and were in the Q1. The tests are done, in my experience looking at labels, about two-three months before the sale. Now, sadly, statewide sales seems to be in slight decline, and same store sales are certainly down.
Google trends showed a jump in searches: https://trends.google.com/trends/explore?date=now%207-d&q=sgby,%22signal%20bay%22
Some Oregon cannabis labs are giving this PAC money:
https://secure.sos.state.or.us/orestar/sooDetail.do?cneCommitteeId=18430
"Nature of Committee
To protect public health of Oregonians by ensuring the safety of cannabis and cannabis products, with emphasis on policies that support rigorous analytical testing, validated science, and research that promotes public health."
The Oregon state marijuana sales tax rate last year was 25%. Now it's 17%, and cities and counties can add on 3%. So the difference rates explains much of the difference in tax receipts.
This is the link to the state website that has the latest tax data. https://www.oregon.gov/DOR/programs/gov-research/Pages/research-marijuana.aspx
They can do well, but how much are they worth? Same store sales in Oregon are recently down month-to-month, based on new tax receipt data released today and the fact that the number of retailers in Oregon keeps growing.
I decided to sell some today, mostly because I had too many eggs in this one basket. I had bought on the wrong day (Jan 30) and had to average my way down. I have a buy order in for lower.
I think there will be bad news out tomorrow about the Oregon marijuaconomy based on the new tax data, which I haven't seen mentioned anywhere. Oregon sales are in a mild decline, despite the number of retailers increasing.
I kept some too, so who knows. I trust this CEO and believe the California regulations will be a boon. I admit I don't have a good understanding of the competitive landscape in California.
$708,000 (consolidated Q1)-$335,000(November)-$198,000(October)= $175,000 (December)
I thought revenue for the quarter was $708,652?
The press release in October , iirc, was for $335,000, and the one for October, iirc, was for $198,000.
Does this mean that December revenue was about $176,000?
I am glad I got in here within the last two weeks at .0014, 0.0012, 0.0010 and then 0.0011.
I think we have a good product here and a motivated and talented CEO.
I bet we close at 0.0021 tomorrow.
Thankful. Things were consistent with expectations and I didn't see any huge surprises. Q2 should have better numbers, and now we can start the "any day now" posts about that.
Saying that he's finishing up with the auditors and that the financials will be released soon is not material non-public information. There are volumes of case law on this.
There was big movement on a Monday at the end of January.... and I am not sure we ever figured that one out except it was sparked by one large buy of 12M shares, if I recall correctly. No news came with it.
Data from early 2016? Thanks! /s
The number assumes that 25% of sales is equal to the testing revenue, and there's no way that's true.
Thank you for posting an article about data from early 2016 that actually isn't helpful for current SGBY analysis.
Inform us, how would Canada legalization push SGBY up higher than almost any other marijuana stock today?
It does seem like someone knows something. Where's Mags? He has been quiet today.
What happened this morning to make it pop? High volume bids, but what specifically happened?
What is sampling? "To meet testing requirements, physical sampling from a batch must be done by the employee of an OLCC-licensed and ORELAP-accredited laboratory... If the sampling is done at the site of the producer or processor, once the samples are physically
taken, then the sampler should instruct the licensee how much weight the sample package(s) should contain from each individual container. If the sampling is being done on the lab’s premises, the lab will
create the sample package in their own Metrc account... There are two steps to the control study process. The first is sampling and testing by the lab; the second is certification of passing control study results by the OLCC. " https://www.oregon.gov/olcc/marijuana/Documents/CTS/SamplingandTestingGuide.pdf
Other labs talk about sampling:
"sampling service": http://www.greenleaflab.org/
"to schedule a sampling event": http://pixislabs.com/pixis-labs/cannabis-testing/
company cars doing courier service for submitted samples: http://oganalytical.com/services/courier-service
SGBY leadership seems to believe in the future of Oregon cannabis testing. The recent purchase should give investors confidence. The stock price is also being depressed by the stop sign, and we've even had people post here saying they won't buy at this point. The problems are just temporary, and I bought the other day at 0.0196. Cues from the company, and state data, indicate that all is bright.
Buying cars and putting the company name on it is a sign that the company expects to still exist in two years.
Does anyone think the ticker symbol should be EVIO or LABS and the company name should be changed to EVIO? Maybe this is unknowingly a dumb question.
My facts are that I bought some at the store last week, and it was tested on 2/10/17 by Greenhaus Analytical.
I would think that the February revenues would be higher than October's due to staff being more familiar with the procedures and simply being more efficient. The turnaround time would be less, and they could accept more orders.
The number of producers waiting for state approval is simply staggering. The number of producers is growing at a much higher rate than the number of labs.
The purchase of equipment is a great sign. It shows that they have high demand, higher than is reflected in the November revenue numbers.
You're right.... my math is wrong. I omitted medical marijuana and used the wrong tax rate in my math.
Dept of Revenue says $4,509,162 collected in state sales tax in Feb. https://www.oregon.gov/DOR/programs/gov-research/Pages/research-marijuana.aspx There is no sales tax on medical.
With the tax revenue number, we can then calculate non-medical sales, since there is a 17% sales tax.
4,509,162/x = 17/100
x = 26,524,482 = total recreational Feb sales
x/28 days in Feb = $947,302 sales per day
= $6,631,120 sales per week for non-medical marijuana in February
Fact: Oregon sold $805,000 of cannabis products per day in February.
Fact: More people have applied to grow marijuana in Oregon than are actually growing marijuana.
SGBY doesn't have four mobile labs. We have three sampling trucks, vehicles to help with the required "sampling" under the Oregon rules. We would be wise to learn the difference between sampling and testing.
One note about the Oregon marijuana sales revenues that Mags mentions, the marijuana that is in the great January sales numbers was tested in October and November.
February revenues for Oregon are lower than for January, but maybe that is in large part because Feb has fewer days.
I find promise in the increasing number of Oregon retail MJ stores (and the number of pending applications) and in the upcoming California mandates.
Good luck WW!
It's weird to publicly speculate about others committing wrongdoing without having a shred of proof.
There's a difference between sampling and testing?:
https://public.health.oregon.gov/LaboratoryServices/EnvironmentalLaboratoryAccreditation/Documents/sop-001.pdf
A lot of factors in our favor, like market share of licensed testing labs in Oregon, state sales totals, the number of licensed producers, the rate of growth of the number of licensed producers, the rate of growth of retail locations. I think the price is depressed by the lack of communication, but I also think that we are going to be ok.
Jeff Sessions does not seem eager to disrupt the market. He seems mostly focusing on issues involving violence.
Lawmakers in Oregon want to protect the state's reputation for clean cannabis and eventually become an exporter when it is legal. Testing in Oregon is here to stay.
Even a lab that is probably inferior to our labs is worth possibly $3.1M dollars. https://www.bizquest.com/business-for-sale/accredited-orelap-nelap-iso-17025-cannabis-testing-lab-for-sale/1300389/?q=a3dpZD04NzY3Njgmbz0x
California is about to be front and center in the cannabis world and we have a good entry point there as they roll out their mandatory testing program.
It's taxed at a state rate of 17% now, but that was 25% in 2016.
One test for each 30 pounds is the current rule, I believe.
I bought a few minutes ago for 0.0012.
Why's the stock tanking today?
Another publicly traded lab stock did $25k in trading today. I don't see the argument for how state-licensed laboratories with many customers are a scam.
I bet the CEO, like most people, is a good man. I also believe he is doing the best he possibly can.