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Grabbed an additional 5k here. Seems like we're close to bottom.
I'm not sure what else could come out that would negatively affect the stock price.
Next Q we should see that consignment inventory as revenue.
Hundred percent!
Let them continue to generate more orders, increase their revenue, add new markets, new distributors, new products, etc.
Probably cool it on their estimates, and wait till the business is a bit more consistent before throwing out some large numbers.
While COD payment is the gold standard, when dealing with major chains, KAVL offers payment terms, with most extending out to 120-days. Thus, in these types of orders, Kaival Brands fulfills and ships the entire product order upfront to the distributor and then receives payment for products upon sale by the wholesale or distributor payable monthly. Thus, with the payment cycle lasting up to 120-days, payment in full can take time. Still, that doesn’t mean the money isn’t coming. What it does do, however, is sometimes skew the quarterly results to make it appear as though the company might be underperforming on guidance.
For instance, its recent combined orders for $41.6 million were shipped with 120-day terms in April of this year. However, despite these orders being placed in the second quarter of fiscal 2021, GAAP accounting rules require that revenue recognition only be posted once the product sells or payment is received, since there can be no assurance sales happen. Thus, while KAVL expects to receive the entire invoice amount, it can be slow to accrue for reporting purposes—however, it’s still a receivable that merits investor attention. And the excellent news is that while KAVL awaits its cash, it can benefit from similar terms that allow them to leverage terms and expand its market reach as well. That’s already happening.
Great summary BuyNStonks.
It's all about risk vs reward, and we're in the OTCs, so there is an additional risk everyone should be aware of.
I can't dispute anything you laid out, but it's easy to dispute "this is a scam" claims.
You have always provided facts and solid information which makes it so much easier to have discussions with you even if we don't agree on certain things. These boards are good for one thing, finding good people that "get it".
I'm trying man, he doesn't want to admit defeat. There is only so much I can say.
Does he think that people just started trading and became profitable overnight? It's a complete learning process and it takes time. He'd rather whine and complain and call it a scam because of his lack of DD and understanding, then take a step back and figure out WHY he did what he did.
I've been playing with OTCs for 15 years or so and have only been profitable the last 5 or 6. That's 9 years of learning, 9 years of making mistakes, 9 years of blaming everyone else except myself. I've been where he is, and I'm trying to point him in the right direction.
Step 1 is remove emotions and be responsible for your actions.
Is KAVL a scam? I don't believe so, but even if it is, there is money to be made here. Look at the people that made money on PHIL. That company has nothing and it's valued more than KAVL. Just one example of hundreds. I'd rather hold KAVL, than PHIL.
Anyway, have a good night!
PR for the company, or pointing out the fact you have brought only opinions to the table?
You say scam, yet the company has been generating millions in revenue.
You say scam, yet you can see the product is being distributed in thousands of stores.
You say scam, because YOU made a terrible decision to buy at the peak, and now you feel the need to bring misery to all around you, because YOUR bad decision.
When will you admit that YOUR lack of DD, that now says it's a scam, is the entire reason YOU lost money. That same DD that made you buy over $3, says it's a scam at $.70.
You have provided a lot of information. I'll mull it over the next few hours and report back.
Emotional trading and selling AFTER a big drop. Two of the worst strategies, but good luck to you! This board will be so much quieter without all your moaning and groaning.
Oh heck yeah!
I know, but if we can help at least 1 trader change their view of the markets, then we're all better off.
How do you ever expect to become a profitable trader if you continually complain instead of learn from your mistakes? You bought the peak. You bought over $3 when the stock was around $.50 a month before that.
"Dilution" isn't the reason you lost money, you lost money because you bought a stock that increased 6 fold in a month's time.
Restricted shares.
Will they sell or when will they sell? Who knows. You know TSLA gave out shares on very favorable terms before they IPO'd. Could be insiders loading their shares for an uplisting.
Also, those shares are for the last 6 months and are already included in the current outstanding share count. I don't think most, if any have been converted to unrestricted based on the changes to the unrestricted count during the same time period.
Those are restricted shares, no one is doubting that shares have been used for payments.
Darkest before dawn my friend, but you've always been emotional so not surprised you're still emotional.
Some of us can weather storms better than others. I blame that on lack of diversification. I have a handful of other stocks that are bread winners that keep me distracted while KAVL does it's thing.
Someone is manipulating this? People are buying and people are selling that's normal across the board.
Are there strings being pulled behind the scenes that we, as investors, aren't privy to? Sure. But that can also be said for everything tradeable including things like Silver, Game Stop, Tesla, etc.
I'm sorry you took that loss, and I'm sorry we're in this current position. To be an OTC trader you need to deal with these ups and downs. If you're looking for quick gains, you probably should have sold this earlier when it wasn't continuing the run. If you were looking for a long term investment, then I would have bought more lower.
I still believe the OTC is hurting us the most. When an entire exchange is filled with "flippers" and "traders" that aren't interested in the long term fundamentals of a business and just looking for the next pop, or the next 100 bagger, then you get wild movements like we see here.
Look at the people that bought .80, .90. 1.00 back in 2020, just to watch the stock drop all the way down to .23. You know who was buying that dip? I was, and I know multiple people here were also buying. KAVL in my opinion is a coiled spring. It has the goods to be a large company, but it's not being treated like one.
Sure, the R/S spooked people, the way these 2 big deals were structured spooked people, but at the end of the day, would you decline $40M in business because you won't get paid in 30 days? What happens if more wholesalers are now interested and that $40M consignment based orders turns into $100M, or $200M down the road?
Just a matter of time before KAVL posts a 9 figure quarter at which point it might be too late to pick up shares under $1, or under $2 or under $3.
That's quite the allegation.
Amazing! BSPI undervalued for sure
Doesn't matter supposedly.
It's clear that some here don't know how to trade penny stocks, and can't differentiate between something real, and something like PHIL.
Were the results disappointing? Yeah, somewhat. They could have announced the difference in contracts. They probably shouldn't have given a full year guidance this early on. Mistakes will be made for a newly public company generating 10s of millions in revenue.
Holding all and buying more.
The writing is on the wall. KAVL is a growing business and moving in the right direction. People all too easily forget the journey and where we've come in the last year.
People bought too high, people are annoyed by how long real businesses take to grow, people just want to get rich overnight and have no real patience, etc.
If you've been trading penny stocks for more than a year or two, then you know how KAVL is not the normal OTC stock, and exactly why I continue to hold large chunks of shares and continue to buy more.
For some that's a lot of money, especially those folks that are new and dipping their toes into penny stocks, or just haven't become profitable yet.
I personally wouldn't throw my opinion around if I was only in for a grand, OR if I'm not even a profitable trader yet, but this website gives everyone a voice, regardless of their inexperience or track record.
Covid delays are very real BeeHaus.
Look at almost every single business right now and they are having supply and logistics issues because of COVID shutting down the world for so long.
I got some 70s and 60s. Long term we shall see.
People are obviously going to react negatively to these results because they don't understand financial reports.
What these people don't seem to realize is that the $41M should appear in the next quarter's report and is going to be our biggest quarter to date.
How can you overlook that 2 orders from 2 distributors is going to generate more revenue than your highest revenue month to date?
Will we have a $100M quarter this year? Is that not going to be good enough for people? What kind of numbers does an OTC stock need to generate some interest. We'll have crybabies no matter what management does and regardless of what kind of revenues they pump out.
I'm definitely not the only one, I'm probably just more vocal than most.
I have over 40 tickers in my portfolio. That's 40 different charts and stories to keep a hold of and I can honestly say, KAVL is one of my biggest positions and also one of the least risky of all my holds.
Would have been nice to know when they signed the deal, but maybe they didn't realize the revenue recognition rules (back in my corporate finance days there were always rules).
Still solid growth though, and we keep increasing reach with new distributors.
I still believe in the long term of the company. I will be buying more for sure.
Yup, the ball needs to start rolling which will take 120ish days to catch up.
Everyone has expectations, some have a shorter term focus than others. This happens on every single stock, so nothing new.
I've always been long term and my posts have always reflected that.
I've always said there will be hurdles and I've never said this was going to go straight up, etc.
When you start dealing with companies who generate orders of tens of millions of dollars, we need to expect that their terms are going to win out.
It's the way a bunch of these new contracts are set up. It's more of a consignment than flat out sale, so they could take 120 days before fully paid.
It's okay in the long term, but the first and second Q are going to be difficult until the ball gets rolling.
I'm just disappointed they didn't mention this in the PRs. Instead they waited until earnings to say, oh by the way.
Also, some positives, gross profit margin increased to 34.6%, and stockholder equity more than doubled.
Well, these results are very disappointing.
Sorry, I don't read the board every minute nor watch the stock every tick.
Things will happen when they happen. The end.
The catalyst is Moody/Denunzio are looking to take over the shell.
They have a great track record of taking over dead shells and bringing in legit businesses. KAVL and NXMH are two success stories and FTRK, CPSL, CHSO, BSPI are their other current/recent tickers.
Very good, it usually means the higher you go, the less volume it takes to move it because no one is selling. A bunch of have been in moody plays for a long time, these things are no brainers, especially with how cheap this one is priced.
Spot on. Look at all the other moody shells too. They are much further along obviously but there is no doubting the upside potential from their plays.
BSPI, FTRK, CPSL
Today's volume was almost double the unrestricted.
Float is going to be locked very quickly.
Market cap is extremely low for a moody play, going to be a good one.
Just out of curiosity I looked at RLX institutional ownership. It's up to 55% of the O/S.
Once again I 100% believe the reason KAVL is valued the way it is, is because of OTC traders and their lack of understanding of fundamentals.
Some great consolidation above $2 with almost 2M changing hands this week.
Just looking at the chart it really feels like some one/entity is buying up a ton of shares.
So I guess they can't bury anything into the weekend, so fireworks Monday?