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Okay, so no material evidence provided. Thanks.
Please elaborate
Wouldn't that be nice... not once has any information like that been provided.
Revenues change everything. Patience is key.
I was responding to TKane, who suggested VATE should look for advertising at the major sporting events. Simply not going to happen.
Augh...
--> the average 30 second clip in the 2018 Super Bowl was $5,000,000.
--> the average 30 second clip in the 2018 NBA Finals was $750,000.
--> the average 30 second clip in the 2016 World Series was $500,000.
How would you expect a company like VATE, who should pull in about $300K in revenue for 2018, buy any level of advertisement time, at an event of that scale?
Understand that it simply just would never happen. Their dollars on advertising need to be spent at the grass roots level via FB, Instagram, Twitter, etc. They are not close to advertising anywhere for major sporting events.
I agree here, 7 months+ is a long time to get the CBD ready-to-drink cold brew out the door. That being said, it's clear in the 2nd photo that is just a sample bottle. It's not uncommon in the slightest to have completely different packaging for samples vs your finished product.
And while 7+ months is a long time to bring a new product to market, I think it's important to keep their scale in mind. It's a small operation - so the time it takes to get the formula, get the packaging, get the design get the distribution in place - it's all amplified when you've got a small group of employees wearing multiple hats.
Fair point. I thought CANB had been added and focus shifted, but to that end, I may be incorrect.
Moot point debating it though :)
*there
Oh right, I just forgot that the "2018 Grand Salami" was renamed to the "2019 Grand Salami" .. my mistake, fake news indeed.
Where's my eye roll emoji here?
We will see. Not sure if we would see .01s, that would be absurdly undervalued.
Their 52 week low was in 3/17/18, where the stock hit .024. I'd be shocked if we went down there again, but stranger things have happened on the OTC. Reality is, the company is far rosier financially than it was in Q1 2018.
From a technical perspective, we have an interesting picture:
VATE has crossed two sets of the "death cross" the first at the end of July 2018 when the 50 day crossed under the 100 day moving average and again for the 2nd time around the middle/end of August 2018, when the 50 day moving average crossed below the 200 day. And besides the one wild run up in early December, the stock has not traded well.
However, whats known as a "golden cross", typically a buy signal - is when the 50 day crosses back up above the 100 or 200 day moving average. Right now the 50 day price is .0419 and the 100 day is .0424.
If we can get just a little bit of sustained upward movement, perhaps on the Q4 report .. that "golden cross" isn't out of the question.
I don't disagree that the new coffee and tea announcement hasn't already been baked in, but the reality is that the revenue from these products haven't been realized yet.
New product offerings are great. For a company of this size, they can take a while to bring to market, we've already seen that.
However, once sales start it's a different story. I think the Q2 2019 report will reflect that.
Again, it's all about time horizon.
While the Deli squad is moving on to their 2019 Salami, don't let it detract or takeaway that the potential in VATE is still there.
The downside risk is near nothing at these levels, whereas the potential to double or triple your money is high.
Hindsight is all relative to one's entry point though right? :)
I didn't find this company until the fall of '18, so I had the opportunity to review financials from that point on going back. At which point during my review, I found that I was even paying a premium when I got my position in the .04s.
That being said, I still think the long term trajectory is there for this company. Slow and steady.
Phunny - sorry I didn't get back sooner.
Listen, when you crunch the numbers, you're right. The multiples - be it share price to sales, EBITDA, price to book, etc, all of them - are very high.
However, I think the point is here, that as soon as this company starts to experience some higher growth opportunities and revenues increase further - the firm grows into those multiples and they start to normalize. Does that make sense?
I guess let's take one example looking at price to sales, from that crazy price jump in Dec '17 and Jan '18, where share price hit a high of about .15 (looking at end of day closing values). We'll take the period for year end '17, we can infer what year end '18 looks like, and then we can forecast year end '19.
Price to Sales ratio = current price / (12M trailing sales / shares outstanding).
Jan 1st '18 (for 2017) = $0.15 / ($146,074 / 578,835,396) = 594.39!!!
^ I think we can both agree, that is an absolutely absurd number.
Jan 1st '19 (for 2018) = $.0385 / ($300,000 / 445,524,276) = 57.17
^Based on Q1 through Q3, I am inferring about 300K in total revenue for '18 and I think it could be slightly higher than that. I am also using current shares outstanding as shown on OTC Markets for 1/4/19.
Jan 1st '20 (for 2019) = $.05 / ($1,000,000 / 550,000,000) = 27.5
^I'll assume a price of .05 and revenue of $1M (based on the shareholder letter) and I'll also assume shares outstanding even increases to 550M.
I think you can see the trend here - the multiple falls from 594.39, to 57.17, then down to 27.5. The point is, as the firm continues to substantially grow, those ratios across the board become more favorable and in line with industry peers. You'll notice that very first share price run up, was completely unfounded. That same idea holds true in all the other ratios. In turn as time has gone on, with higher sales, more distribution, advertising, etc - we will see continue to see organic higher share price and more return on the stock.
Happy to talk further!
If you bought in at .035, you need to sit back and enjoy the ride. Your time horizon here should be months and years, not days and weeks.
Personally, I've got about 450K shares, with a breakeven of just over .04, which I accumulated back in the fall of 2018. Rome wasn't built in a day and I for one, am more than happy to sit back and reap the long term capital gains than short term income.
You (the figurative you) should not invest money that you need back quickly or that you can't afford to lose. This is a infant company and an infant industry, it takes time and missteps along the way to build a successful brand, product, and grow distribution.
And lastly, as I've stated here before, if you were a poor sap that got in this firm at .17 cents - you clearly did zero due diligence. At that point in time, VATE had even fewer sales, fewer products, and less potential. That valuation and price was unsustainable, built purely on speculation (rampant on this board) and hype.
Where we are in however, there is tremendous upside. Again, be patient and enjoy the ride.
+1 .. finally somebody with a rational thought
Instead, most people on this board would rather complain that an infant company isn't moving fast enough to make them overnight millionaires.
SMH.
+2.
While I'm on the VATE train for the long haul and really like the direction of the company, the blind optimism and rumor mill that oozes all over this board is half baked.
Their 2018 total revenues will come in about 300K~ and they are not yet cash flow positive. Again, moving in the right direction, but not there yet.
These posts about "potential" links to Pepsi, Nestle, Kroger, Whole Foods, etc ... I just don't get it.
I appreciate that. I can certainly understand how some people here may be sour at getting in during that run up to .17, but the reality is that price - given the financial picture at the time - was on hype and unsustainable.
I think anybody investing here that is getting in at .05 or under, are very well positioned in the long haul. As I've mentioned, VATE is moving in the right direction, for all the reasons listed in my posts and this board previously.
I for one am more than happy to get taxed at the long term capital gains rate than the short term ordinary income rate.
This company is the tortiose, not the hare - and I think you know who wins the race ;).
Again - saying he's a "Pepsi Spy" or even alluding to that, is foolish.
And again - Risi worked for YUM Brands, not Pepsi. YUM Brands does use Pepsi products exclusively, but the two are not the same company. Let's make that very clear.
"Chris played key roles in launching innovative Pepsi beverages.." -- of course he would have, if he worked at YUM Brand and was in the beverage sector, their contract was with Pepsi. Take Pepsi's Mountain Dew Baja Blast, it's unique only to Yum Brands / Taco Bell. Risi could have had a hand in that, but again be clear. He has never worked for, but has rather worked closely with, Pepsi.
Also, you can choose to buy into those 1-liner rumor bait links as much as you want - but if I were a betting man, I'd say 99% of the time, those are nothing but fluff.
You're right - Time will certainly tell. This company is building their sales / distribution network and is growing. We'll see how this marathon ends up.
And if you got in at that .17 price point, then sure, I feel bad for you.
Though if you did, you clearly didn't take a hard look at their financials, multiples, or anything else that would indicate that at price of .17 was entirely unsustainable and overvalued them at the time.
I found this firm last fall and have a sizable position at .04. From my entry and point of view, I'm sitting exactly where I want to be.
Agreed. Any attempted connection between VATE and Pepsi would be flat out misleading.
Go take a look at Chris Risi's LinkedIn page. While he has a solid background in sales/marketing, he worked for YUM brands back in 06'-12'. He did not work for Pepsi. Additionally, that was 7 years ago.
Folks need to stop playing this guessing game of M&A, mystery connections to these big box retailers, etc and rather look at the facts.
1) Distribution network is growing at a healthy pace.
2) From the above, sales are growing at a healthy pace.
3) Extensive debt has been retired, an affordable amount is left.
4) Current product line is selling and well reviewed on Amazon./
5) Product expansion is coming.
If you want to invest here, understand its a marathon not a sprint. In my opinion, they've done the right thing getting their corporate governance in order (audit, uplist, etc) and now the focus is on growing the business and the brand. The point is, it's happening organically - maybe at a slower pace than investors would like, but this company is moving in the right direction.
https://ih.advfn.com/stock-market/USOTC/elev8-brands-inc-VATE/stock-news/78992810/elev8-brands-inc-begins-production-of-new-cbd-bo
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
are you dumb? it's literally being signed at 2:30pm
https://www.whitehouse.gov/live/
I'm just not sure I understand the hold up. They are uplisted now, which means they've already had to go through this type of financial analysis for the 2017 audit and should be comfortable regularly preparing financials statements.
The quarter ended 46 days ago now. Quarterly financials are due 45 calendar days from quarter end. Why for the past 2 quarters have they needed an additional 5 days?
I agree. How can a firm make nearly $6M in a quarter, but only take home $54K in net profit? That is absolutely absurd.
Their G&A expenses doubled quarter over quarter from $353K to $709K and even more concerning their sales and marketing is up 50% while revenue stayed flat.
Revenue has stayed on par with earlier quarters.. averaged about $2M monthly rev in Q3.
They made another $5.9M in revenue but gross profit is only up $54K
QUARTERLY REPORT POSTED ON OCTMARKETS.COM
Incorrect. An OTC company has 45 days from quarter end (9/30) to post their financials, before being considered late and an extension must be submitted.
POTN must publish Q3 financials by EOD today to be considered on time. If not published, you will see a late filing notice posted on OTC markets, which generally grants an additional 5 extra calendar days for submittal.
Wouldn't that be nice...
OTC companies have 45 days after the quarter end to file their quarterly financials. If not posted within that time frame, they have to submit an extension or late filing notice.
The 45 day period would end today, so we should see Q3 or a late filing notice posted to OTC markets.
If I remember correctly, all OTC stocks have 45 days from quarter end to publish their quarterly report before it is considered "late". If not published within 45 days, an extension must be granted, or again it's considered "late".
Since October has 31 days, you are correct. The filing should be done no later than tomorrow.
Agreed - KGKG's price makes little to no sense, now THAT is a mania.
Half a billion shares outstanding and to date, like 40K in revenue through June 2018.
Perplexing.
Total annual revenues last year clocked in at about $14.5M. While I was hoping that POTN could double revenue YoY, it seems they've stalled and clocking in at $2M a month for 2018.
Let's smooth that out and assume that they do a total of $25M in revenue this year - that's still an increase of just over 72% YoY. Not too shabby.
By no means is the CBD market saturated, it's still in it's infancy. If POTN can continue to grow their distribution network and create additional outlets for sales ... while getting their share structure and debt obligations under control -- there is no reason why this couldn't easily be a multiple dollar stock.
While there will always be flippers - I'm more than happy to sit back and enjoy the ride and pay a long term capital gains tax!
+1 to your points. It's all about contracts/new deals/new shipments
Excellent!! Good catch!
Very excited with what's coming for VATE, have 500K shares sitting and waiting, accumulating on these little dips. Through the first half of this year, VATE eclipsed all of 2017 (in terms of sales). I think management has made some strong strategic decisions in regards to product expansion and marketing, which is well documented here. Share structure remains under control.
All in all, I'm hoping for them to succeed and they are growing, albeit at a slow pace, but it's strong and steady growth nonetheless.
I was doing some fact finding on OTCMarkets.com in regards to QB uplisting. Based on the link below and steps outlined, my best guess is that all that's left is for VATE to submit the annual fee of $12K (or semi annual of $6.5K) then sit back and wait for OTC to process.
Shouldn't be much longer before we see the official QB uplist.
https://www.otcmarkets.com/files/OTCQB%20Application%20Guide%20for%20U.S.pdf
Has anyone else followed pink sheets that complete the process to QB uplisting? VATE's audit now complete and the QB certification being posted to OTC, I'm curious on timelines / final hurdles to 'official' uplisting.
Good volume and bids so far today, looking for this to maintain into a pop for uplist and perhaps Q3 financials.
To be clear, VATE did 144K in total revenue for 2017. Then within the first the first half of 2018, VATE did 153K in revenue.
While I'll agree that market caps almost never make sense in the OTC realm - why don't you do a little DD to see they are moving in the right direction in terms of dilution, debt, strategy, and sales.
LMAO.
nice catch! hopefully we see something "official" for start of day Monday!!