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Don’t waste your breathe, this company is far too legit and transparent for these kind of tactics. If anyone has genuine concerns call the IR ar FRLF and Ray will talk to you on the phone. I don’t see any “P&Ds” that ever do that.
CBD product being previewed we are almost ready to roll! Not to mention all the other existing product lines and news. Stock has bottomed already, only one way to go...up!
We’re in the CBD business boys and girls! With a $1m market cap and clean share structure. Find me another one of those.
This is absolutely huge!!!
Confirmation of product. It’s beginning!!
And I believe this is one of the 2% that is not a scam.
Good call. I debated all weekend do I sell into the open today and then try to rebuy? Ultimately decided against. With a full time job and huge tax hit on ST profits I had to ask myself what is my goal here? I believe this is at least a $500m valuation company in the next year or so so I stay in. This is the one OTC I see no red major red flags in. Big money is investing here not flipping.
Ahhh...then that makes a ton of sense.
Help me understand because I’m not a trader, I am buy and hold. So I did the math, if I had sold my .145 cost basis shares at .50 and rebought at .35, after a 35% tax bracket tax hit I would only have the buying power to buy back the same number of shares as I sold at .35. Why go through the exercise vs just hold? Just trying to understand.
I want slow and steady for sure.
Private equity investment, one of their investors on the board. I view this as a partnership at favorable terms.
Float of 18 million is extremely low. Can run hard, supply and demand.
When it ran to .47 last time this was a much smaller and weaker company. The two moves not comparable. Go to news and see all the new business lines since then. Plus Merida. They did not get in here thinking price maxes out at .50, they got in for $$$’s...
I’m telling you my gut says it’s PJET. We will see if I’m right.
Good chart breakdown Clay, chart is looking really good. Most of shares owned by insiders. Tons of revenue catalysts here.
Sure hope so because I already lost my buns on it.
Below are my notes onFRLF from public sources. For the fiscal year 7/1/18 through 6/30/19 I calculate revenue potential of $6-$17m but that is low because hemp farm is being ramped up and fixed. Max potential revenue from current business lines is $30-$40m by my math. As such $.50 is cheap if you understand where they are heading. And all my info and numbers were before factoring in Merida investment.
1) Share Structure
a. Market Cap = $22.2M (8/10/18)
b. Authorized Shares = 500M
c. Outstanding Shares = 195M (8/13/18)
d. Float = 18.8M (4/12/18)
2) Key Shareholders (71% held by insiders as of 12/31/17)
a. Clifford Perry (CEO, CFO, Director) = 11% of common stock
b. Richard Cowan - 16% of c-stock
c. Richard Groberg (CFO) = 1.7m shares
d. Ray Medeiros (Director) = 5.3% of c-stock
e. Allen St. Pierre = 2.6% of c-stock
f. Paul Pelosi (Board Chair) = 2.867m shares
3) Business Lines — vertically integrated media and CBD product company
a. LaMarihuana.com and Marihuana-Medicinal.com — April 2017, Spanish speaking web portals. LaMarihuana has 1.7m visitors/month
b. Leafceuticals Inc — began ops Jan 2018, hemp extraction business
c. Freedom Leaf International Inc. — no active operations
d. Irie CBD — hemp CBD product line, expect $2m rev ($1.3m in 2017) with a 13% profit margin ($260k/yr, $65k/qtr)
e. Hempology —CBD health/wellness brand
f. Valencia, Spain — hemp greenhouse
i. 2,000 kilo indoor harvest =$750,000-$2,300,000 (probably 1m euros)
ii. 30,000 kilo annual indoor harvest capacity = $14.55m - $34.5m annually (probably 15m euros)
iii. 20,000 kilo annual outdoor harvest capacity@ $50 min ($1m), but plan on using for own extraction facility…save a little by using and shipping now
iv. Profit Margin ~ 35% - 45%
v. Hemp flower in Euro sells for 625-1,025 euros per kilo
g. Plants to Paper — rolling paper company (own 25%)…delivered 120k cones to HBI…should get 2-3x to deliver asap
h. Freedom Leaf Magazine — flagship publication, deal funnel…never monetized the magazine (its more a loss leader to brand and create deal funnel and create credibility)
i. Ideas in place to monetize it…$30k/issue revenue
i. Tierra Science Global, LLC - 8/1/18, health supplements, $500k rev in 1st half of 2018 (manufacturing done by Irie)…own 100%
i. Est annual rev of $2.88m and 24% profit margin, with Irie doing manufacturing, good portion of cost comes through as revenue to Irie
ii. CBD related products made by Irie…Hemp Tincture…
iii. Tierrascience.com
j. Healthy Discovery Associates Corp - nutraceutical LDL Cholesterol inhibitor intellectual property acquisition (bought patent)…redo liquid formula into a powder formula
k. Green Market Europe - purchase that was cancelled on 6/4/18
4) Preferred Shares = 10m authorized, 1m is Series A convertible into 100 common per share
5) Other Info
a. Hope to be at net profit possibly by Q2 and definitely by Q3 of FY2019
b. 10k by Sept 15th…
c. Good corporate governance and transparency!
6) Revenues & Exp -
a. Reduction in revenue vs. 2017 is from moving away from licensing to product sales…had 3 license holders (Netherlands, Iberia, Florida)…
i. Licenses will start up again next month (Netherlands/Iberia), sold to Southern California
b. $50k 3/31 quarter revenue from $30k CBD oil, $20k sale of product
c. Growth in G&A expense attributable in part to stock based compensation…also costs to ramp up website
d. $420k of cash quarterly operating loss (3/31 10Q) to be covered (don’t count bad debt and depreciation)
i. $173k covered by Tierra profit margin
ii. $65k covered by Irie (at $2m rev)
7) http://nebula.wsimg.com/4967baac9de5d72e7bcf62e9b7997caf?AccessKeyId=F7205B59A244F1B3EF10&disposition=0&alloworigin=1
If we are having this same conversation in 2019 then yes agree but I’m giving them a short term pass to put a plan in action.
True performance has sucked so far but I have faith that under new management they will do something right. I’m giving the new guys a shot. If they get anything right, we fly!
I like this guy...the board needs some good comic relief!
Fingers crossed, this stock has been a total garbage fire since I got duped into investing in it...
Its now very soon.
Might want to work on your DD skills then...there is neither a pump (only PRs on major deals) or dump (share count is low and not going up).
I am a CPA...
In a traditional IRA you invest with pre-tax dollars and then when you sell the shares and extract those dollars from the IRA account you are taxed on the earnings (pretax money goes in and is only taxed when withdrawn).
In a Roth IRA you invest with after-tax dollars (they money you and i see when we cash a paycheck) BUT, when you withdraw the money after you’ve sold the stocks, you aren’t taxed on the earnings.
Call me crazy but I’m in at .145 share and thinking not to sell a share for a few years. If you read the PRs when all revenue lines are fully operational you may be looking at $30-$40m annual revenue. Put a 15x multiple on that and you’re looking at $3/share conservatively in 2 years...if they uplift to NASDAQ maybe we say a 50x multiple (Tilray is much more) and now the share price is maybe $10/share in 2-3 years. Am I nuts to say lock up all shares until at least 2020? I just don’t see a lot of downside risk here.
Ok just showed up here. Thinking about investing. Can someone help me with opinion. What Youtube video. Sorry want to go long on this but would appreciate seasoned investor perspective
Cool thanks. Good to have you on the board. Hope you make lots of $$$
Throwing out a theory here...PJET is the unnamed target for the USMJ spin-out. See their PR today. I know there is a relation there. Wouldn’t that be great.
I have a theory, the target is PJET...there is a connection there and PJET is just a shell at this point.
From the PJET board:
The management team is linked up with USMJ and PURA there is no reason they can't put CBD in their water, which is legal in all fifty states, at minimum.
Let me ask you a question. Let’s say you’re in a stock short term and you sell your shares at $1 for $100k and it’s all profit and then it goes down to $.5 and you use the $100k to buy back twice as many shares and you say I’m great I doubled my shares for “free”. Isn’t that wrong because you’ll be taxed on the $100k and only keep $70k after tax so those additional shares really cost you $30k. Am I thinking of that right? Because I hear people say they got in and out of a stock and got more shares but aren’t you taxed every time you sell for a short term profit. Am I making sense?
Yes! You have to see the full vision here to get what they’re doing. The media outlets are loss-leading deal funnels for their vertically integrated MJ business.
This is a true buy and hold. Only one I have seen that has no “it’s great except” kind of issues like bad share structure, toxic debt, etc
Believe me I’m no expert either...love the thrill of pennies but hate that it’s almost impossible to get right. Literally every one I’m in I feel regret whether good or bad because in theory I could have played it better.
If you made money you won!
I thought of going the ride freebie route which I would with others but I just don’t see the “risk to go to .0001” where I would need the reassurance to sell here. 10k our in days with much more revenue and then 10q in about another month which should show much more.
I feel like Clay Trader here but “as areas of support are broken under they become areas of resistance”...looks like .20 is a new resistance level. Not great.
Agree but we need to give new guys some time to execute too. New combined company only 2 months old. Deals take time.
Sounds like you like making money! Good luck!
Stock is priced below book value of assets and no debt. Limited downside.
Check the info on this one. Talk to their IR...this is not just another penny stock IMHO.
I’ll be much happier with a slow and steady rise than it going crazy up and crazy down. I want to hold for years.
Gap filled. Better now than later.
I want it to succeed and ideally I want to buy back in but they’ve been stuck at $2m a month for almost a year...what is keeping them from growing that revenue base? Their product is great, I don’t understand why they are squandering this golden opportunity to be a real market leader.
Makes sense...I was here through the whole run and remember those updates...the growing revenue was the reason I invested and what they hung their hat on...I remember the ticker on their website showing real time sales...
Audit would have nothing to do with ability to share sales...
How sad, I loved this company and made some nice $$ off it.