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What does that mean?
investor conference is Sep 16-17, today and tomorrow.
I have a feeling these investment conferences are going to spark Surna's share price... just noticed this piece from 8/26
AUGUST 26, 2019 - 5:35 AM PDT
The Daily Buzz: Looking for Action in Small Caps this Week? (SRNA, CURLF, MMNFF)
Surna Inc (OTCMKTS:SRNA) shares have been launching higher in recent weeks, nearly quadrupling since August 7. The big catalyst driving the action is news that the company recently announced that, during the first half of 2019, it entered into five $1,000,000 sales contracts, with an aggregate value of $10.3 million. Three of these contracts, having an aggregate value of $6.5 million, were with a single multi-facility operator for a retrofit project and a two-phase facility expansion.
During the first half of 2019, the company recognized revenue of $2,627,000 on these three contracts, with the remaining value of these contracts expected to be recognized in Q3 2019.
Surna Inc (OTCMKTS:SRNA) promulgates itself as a company that designs, engineers and manufactures application-specific environmental control and air sanitation systems for commercial, state- and provincial-regulated indoor cannabis cultivation facilities in the U.S. and Canada.
Its engineering and technical team provides energy and water efficient solutions that allow growers to meet the unique demands of a cannabis cultivation environment through precise temperature, humidity, and process controls and to satisfy the evolving code and regulatory requirements being imposed at the state, provincial and local levels.
Headquartered in Boulder, Colorado, the company leverages its experience in this sector of the overall cannabis cultivation industry in order to bring value-added climate control solutions to its customers that help improve their overall crop quality and yield as well as optimize the resource efficiency of their controlled environment (i.e., indoor and sealed greenhouses) cultivation facilities.
It has been involved in consulting, equipment sales and/or full-scale design for over 800 grow facilities since 2006 making it a trusted resource for indoor environmental design and control management for the cannabis industry.
Surna reached an intra-day high of 12.5 cents per share. The last time Surna was at 12.5 cents per share was Nov 12 2018 - two days before Tony McDonald was announced as CEO.
The volume surge may have been a result of Surna participating in the upcoming LD Micro Conference on Dec 10. This was mentioned in the conference call.
After the call, I went to the LD Micro website. Surna's company profile had Bullich as the CEO. When the volume started yesterday, I went back to the website and the CEO was now listed as Anthony K. McDonald.
250 companies will attend the conference.
BIGGEST GAINERS
TICKER CHANGE
FFHL 217.77%
SRNA 45.16%
HPMM 31.82%
CRRVF 30.89%
LR.V 25.33%
KGKG 23.14%
KMPH 22.89%
MOGU 22.84%
EWLL 22.55%
PCY.TO 22.00%
JMTco - Your point is very valid. That is why Dec 10 is so important. Imagine what happens if several entities (mutual funds, ETF's, ) decide to take a strong position in Surna?
BIGGEST GAINERS
TICKER CHANGE
FFHL 169.90%
LR.V 26.67%
KGKG 22.67%
SEDO 21.62%
PAC.V 21.05%
SRNA 20.86%
TTCM 20.67%
EPI 20.00%
ARYC 19.02%
SSP.V 18.52%
There is very little buzz surrounding Surna. There were a few days of multi-million shares trading but this week volume is back to about the same as it was.
There should be more buzz here. Nothing about $3.0 mil in cancellations. Nothing about the 3rd Q guidance. Nothing about Dec 10th.
Surna will drift for 90 days. Then lift again when the 3Q numbers are released. Then, pop again after Dec 10th.
During the conference call, I sensed quite of bit of controlled enthusiasm.
When a caller in the March 2019 conference call asked about a reverse split, Keating said it had not been discussed but that all options were on the table.
The reverse split language was included in the Q1 Investor Presentation, in my opinion, as a precautionary measure.
The Q2 report is terrific no matter how it is looked at. Due to the great results, there are other options that are probably much more attractive for Surna given its revenue, bookings and cash on hand.
The Q2 2019 Investor Presentation is available to view on the Surna website.
more eyeballs will be on their way to SURNA.
from The Daily Marijuana Observer...
5 of Today’s Biggest Marijuana Stock Gainers – Friday, August 9, 2019
Surna Inc (OTC:SRNA)
Today, shares of Surna Inc closed the trading day up at $0.081 per share. When compared to the previous close of $0.056 per share, today’s increase of $0.025 per share represents an approximate 44.64% bump in price for shares of SRNA.
As an added bonus, Surna reported positive earnings one week early which pinches shorts further, leaving no room to cover except into a buying trend. Well done.
Did you see SURNA's Q2 report just announced? I think that it makes HEMP look like a wannabee.
I feel this thrill going up my leg...
The shorts will be covering in the morning.
vdb_123 - Realizing revenue has been the problem. The unsteady progress of the new facilities (red tape, banking problems, local zoning) led to unsteady revenue. Constantly halting progress.
McDonald seemed to recognize that and shifted the focus to retro-fits with operations that have already barreled through the red tape.
So in the 1Q 2019 report, Surna's bookings for the quarter was a record high 4.8 million (previous high was 1Q 2018 at $4.6 million). That led to Surna's backlog smashing its old record high ($8.9) and finishing at $11.5 million. An increase of $3.0 million compared to previous quarter. Impressive, you would think. Apparently shareholders weren't.
Maybe because the the conversion ratio of turning backlog into revenue was at a record LOW. Surna only converted 21% of the reported $8.5 million 4Q backlog. McDonald's new business model is supposed to improve in realizing revenue.
Depending on the conversion ratio, the 2Q 2019 could be a game-changer.
backlog x conversion ratio = revenue
11,500,000 at 21% = $2.415 million revenue in 2Q
11,500,000 at 26% = $2.99 million
11,500,000 at 35% = $4.6 million
11,500,000 at 45% = $5.175 million
The 2Q report will have three areas of interest; revenue, bookings, cash-on-hand. If this report is favorable in these three areas, SRNA will pop perhaps, get on some radar screens, and gather some positive momentum. Perhaps...
At the last conference call in May, I was out of pocket and not in a position to place a question. I was disappointed that when Surna opened the call for questions there were none, written ahead of time or phoned in. The call ended quickly and the share price dropped just as swiftly.
Communication-wise, Surna has put wheels on. In March, a Letter to the Sharedholders at the beginning of the month, a 4Q report in the middle of the month, and a conference call at the end of the month.
In April, Surna announced a new line of sensors and two projects that would generate 2019 revenue.
In May, the 1Q report came in mid-month. Another conference call within a week of that.
Still, altogether, this has been bloody few quarters where Surna has begun engaging with shareholders but getting clobbered by the investment community.
The upcoming 2Q report will be key for the few of us watching this company. Can Q over Q revenues decline further from the paltry 1.77 in the 1q? that is a $7 million annual run rate! Pretty bad after all these years marketing engineer-services.
On the other hand, if there is lift... and 2Q revenues suggest a breakthrough of sorts. Is $3 million too much to hope for?
Cash on hand will also be critical. However, if Surna is approaching break-even operationally and has more distance to project forward, the market cap and share price should follow.
I think the 2Q reoport is due Wed Aug 14th and the conference call is the following Monday the 20th.
There may be a link for Investor Relations on the Surna website but I don't believe there is a person at HQ with that responsibility. In the March 2019 Letter to the Shareholders, the lack of communication with the investment community was mentioned. "The Old Surna had no analyst coverage..." I was hoping that meant the new Surna would have coverage.
The share price decline started with the 3Q 2018 report showing an encouraging $3+ million in revenue. It may have been Bechtel jamming up his final Q as CEO before hopping off for a better opportunity. The investors thought it was a sign of things to come. Share price and market cap were in higher ranges at that time.
McDonald entered in Sept as a Board member. (Who found McDonald?) Whatever the case, 60 days later he was CEO. Maybe he chased Bechtel out when he saw the lack of execution. Perhaps he questioned the one-sighted limited myopic business plan that began and ended with the engineering services. Upon completion of the engineering services, Surna would not even get a "finders fee" for equipment purchased for the new facility (it had engineered) operational needs (lights, sensors, data).
The new CEO saw Surnas' limitations and voids. 4Q revenue was down. 1Q too.
McDonald began with an aggressive plan that changes focus from solely an engineering-services function to a full service, maximum yield, minimum cost facility provider with recurring revenues for its newly completed operations.
The investor community reacted with typical "prove it" mentality. From September to March the share price had already declined by 50%. The investor presentation (Mar 2019) included a lonely "effect reverse share split" message and the share price dives another 50% despite favorable revenue press releases in April.
Downward sentiment at its peak decline. Even Investors Hub members show little enthusiasm (based on about 100 posts from the announcement of the Investor Presentation to today - an amount of posts that would happen weekly, if not daily, if Surna were on to something).
I was hoping the 1Q report would include some enthusiastic language. To date, the information has been guardedly optimistic with emphasis on "guardedly". The forward looking statements follow through to all of McD and Keatings scripted comments. Their responses to questions amount to "word salad" with caution prevailing over confidence.
Your note to Surna HQ will be responded to with a drab note indicating the message has been forwarded to the Board. You will not get a specific response due to the cautionary stance that MCD/KEATING have taken and the publicly traded nature of Surna's position.
Regarding a Surna PR, nothing has reversed downward sentiment that began after the 3Q 2018 report. All the news has been favorable (VERY favorable) since McD took over. The share price keeps declining rapidly. Shareholder sentiment does not include speculation.
In a previous post I suggested that the Aug 20th conference call might be problematic due to a delay. I was wrong, the calls have been several days after the report is published. Instead, the 3Q 2019 report will be McD's chance to get out in front of downward sentiment.
It was suggested that a capital raise would be necessary in the 2nd H 2019. Cash on hand was $500K in the 1Q report (an increase of $200K versus 4Q).
McDonald's vision is feasible. The new target customers are already licensed so credit terms are not subject to license permits. In April, two contracts were announced that were sizable. Shareholders were advised of positive reinforcement to the new business plan. And, the contracts announced appear to generate 2019 revenue.
I don't know much about the Quebec exchange, but if shorting the Surna share price has been a factor, watch for shorters to cover their position over the next two weeks in anticipation of the 2Q report.
If the 2Q report shows substantial progress toward building the new Surna, the share price will spike as the shorts cover.
If there is more cautionary statements and PROJECTED revenue (as opposed to actual revenue) the share price will decline in anticipation of a dilutive reverse share split.
The market cap is already under $6 million so I don't sense more downward opportunity. Agree?
Hoping the share price has bottomed. It's not showing any signs of strength but perhaps the free-fall is over.
Surna has a booth at the CannaBiz Summit in San Jose that is today and tomorrow. With any luck there will be some buzz at the booth.
The market cap was described as extremely low when it was over $11 million. The market cap recently slipped under $6 million.
Some favorable news would be welcome.
vdb_123 - The share price is on life support but the company seems fairly sound. Recent press releases suggest that Surna is already on a path to match last years sales with a new product portfolio set to generate new revenue streams.
Strangely, the website indicates the next conference call is Aug 20th. The 2Q report is due no later than 45 days after the end of the 2Q on Jun 30th (last Friday). The report is due no later than Aug 14th. A company can request a five day extension if necessary but that would be declared just as the Q report was due.
It is a curious date for the next conference call...
from the website (which has been updated)...
The Q2 2019 Earnings Call will be on August 20, 2019, at 4:00 PM Eastern Time.To access the Q2 2019 Earnings call via telephone:
Dial-In Number: 1-973-528-0008
Access Code: 212852To access the Q2 2019 Earnings call via the Internet:
Webcast URL: https://www.webcaster4.com/Webcast/Page/2020/30890
Surna's market cap ($8.99m) is lower than its annual revenue ($9.2m).
Regarding a reverse split, I agree that in concept it is a simple accounting maneuver that does not affect one's value in a stock.
Historically and perceptually, however, one's value in a stock is doomed. On the surface, reverse splits are penny stock tricks that are used by companies who are falling knives and want farther to drop. It often screams desperately, “we just need more time…”.
Bechtel’s era seemed like a purposeful time to clean up the downward slope that Surna was in after some performance setbacks. Surna also underestimated its ability to collect revenue from its cash-strapped clients. McDonald arrived to find Surna’s bottom line spreadsheet in a state of repair but its top line needed oxygen.
McDonald quickly identified Surna’s strengths and weaknesses. Product innovations were streamlined, and more reliable (and bigger) clients were identified. Communication with the investor community began.
I read thru the transcript (which is available on the website) to see if I missed anything. The transcript focuses on the key points outlined in the investor presentation and are incredibly positive. Bookings were significantly higher in the 1Q and the revenue conversion % is 60. Already revenue is “on the books” to match 2018. Margins are expected to continue higher and operating losses have been lowered.
A reverse split was not mentioned in the 1Q conference call. The closest reference was the intention to acquire a similar sized company and that, “we believe a combined business of this size would meet the Nasdaq listing requirements”. In the 4Q call Keating was asked specifically if a reverse split was under consideration and he responded that all options were on the table.
So, perhaps from a forward-looking statement approach it was important to add to the investor presentation. The vision is there to meet Nasdaq requirements and a minimum share price is one of them.
From a speculative investor perspective, this is the most exciting company in the penny stock world. Revenue, no debt, hot category, no competitor, value added products, highly qualified management team. And best of all for new investors, completely out of favor and undervalued (evidenced by its 1.2 EV/LTM revenue).
In the bewildering case of Surna, the company is more of an arrow that is being sharpened than a falling knife. The company is screaming desperately, “we just need more attention…”. A single press release about an acquisition might send this share price soaring…
Ironic how after year+ of dormancy, in March 2019, Surna breaks out with press releases, conference calls and an investor presentation. By May, the share price has a double digit decline and the investor base wants to disengage. Mostly because of those four words in the middle of the last page - effect reverse stock split. It is halting.
If not for those four words the buzz would have been about the target of a $20mm run rate by year end. That would be $5m in recurring revenue by 4th Quarter. A targeted EV/LTM of 3.5 implies a market cap of $70mm. Assuming the 227mm shares and the target share price at years end is $0.30 per share. Hurray!
Surna identified their intention is to find a like-sized synergistic company to double in size to $40 million in revenue and ultimately send about $1million in regulation fees (associated with being a publicly traded company) to the bottom line. Even better. It is very exciting and more than Surna shareholders could have hoped for when the new CEO was announced in November.
Except for those four words...
Nice post. Surna's expanded business model puts the focus on recurring revenues and organic growth. Surna was getting clobbered because of the nature of their account base - start up companies in an illegal business. Unpredictable revenue from unreliable clients.
Surna is now going after established businesses that can be invoiced with normal payment terms. The illegalities remain but are getting more favorable.
from the bottom of page 4.
Strategic Acquisition and Capital Markets Plan
Last quarter, we stated that we had reduced our cash burn rate to a minimum level to still be able to support our current operations, and therefore the only way to improve our cash flow and working capital position was to add revenue and margin to “grow out” of our current situation. While we can point to several positive developments to date, as discussed above, there is significant work ahead for us to execute on our organic growth plan and achieve fiscal self-sustainability. We may not be able to achieve our growth and financial goals until 2020 or after. Based on management’s expectations about our current business, we will need to raise capital sometime in the second half of 2019 in order to execute on our organic growth plan and improve our working capital situation.
Although we are positive about our business operational changes to date, we believe that for us to be in a more financially sustainable position will require us to organically grow our business from its current level 2 to 4 times, or put another way, to increase our revenues to $20 to $40 million. Some of the hurdles we face in achieving break-even and profit sustainability is controlling our operational costs, having the financial resources to invest in marketing, product development and staffing, and being able to cover the embedded costs of being a public company, which include audit, legal and consulting fees, director fees, directors’ and officers’ insurance, SEC compliance costs, OTC Markets listing fees and investors relations costs.
Part of the solution to address the financial issues that face a smaller company such as ours is to adopt an acquisition strategy that will complement our organic growth plans. Our plan is to identify and pursue acquisitions of companies or assets within the cannabis ancillary products and services sector complementary to our current business offerings. Our initial objective is to consummate one or more acquisitions that would add in the range of $10 to $20 million in annual revenues. We believe with our current revenue position and our public company status, there are a number of private companies, and even smaller public companies, that would be interested in partnering with us. If we are able engage in a roll-up type acquisition strategy, using our public status and our stock as all or partial consideration, we believe we can “scale up” our operations to support the expenses of the day-to-day operations of the company, on a combined basis, and be able to better cover the costs of maintaining our public company status.
We believe acquisitions and related capital infusions, combined with the proper execution of our organic growth plan, can accelerate our progress towards cash operating profitability and lower overall operating expenses. If we successfully execute both our organic growth plan and our strategic acquisition and associated capital raise initiative, our goal is to obtain a Nasdaq listing and implement an aftermarket support program that will result in a widely held, actively traded, and fully valued public company.
“For the first time in the Company’s limited history, we now have an organic growth plan that we believe will lead to higher revenue, more predictable revenue, and accelerated revenue recognition,” stated Timothy J. Keating, the Company’s Chairman. “As we execute this organic growth plan, we also believe that it is now timely to initiate a strategic and capital markets plan designed both to rapidly scale-up the business and lead to a widely held, actively traded and fully valued stock,” added Mr. Keating.
We encourage our shareholders to participate in our investor conference call on May 21, 2019 at 4:00 p.m. Eastern time for further updates on these initiatives.
In total, the press release was very positive with favorable information. There was a whiff of enthusiasm that has been absent until recently. An intended vision of uplisting to the Nasdaq, and an intention to make acquisition)s) that would double sales and more. I sense hope for the first time in a while.
That was fortunate because the 1Q report was pretty dismal. I was expecting some of the activity mentioned in the shareholder letter to generate revenue in Q1. As it is the 2Q report (Wed Aug 14) will be the telling piece.
Surna is NOT directly effected by the sale of marijuana like Tilray (TLRY), Canopy Growth (CGC) and New Age Beverage Corp (NBEV). All three have sales in the $10-40 mil range but have enormous market caps based on sky-high potential profits of marijuana based beverages ($$$). Those three MJ penny stocks have made early investors very very wealthy.
Surna is indirectly effected by the sale of marijuana. Their niche is selling energy savings to the cultivating operations. That's not very sexy. Surna has no debt, rising revenue, proprietary products, an active customer base and over $10 mil in revenue - but no sizzle. Fundamentals are non-responsive factors in the penny stock world.
I think Surna's hurdle right now that energy savings are boring. HVAC is boring. The major marijuana players are focused on top line potential.
At some point, hopefully soon, the bottom line will have its say on the marijuana stocks.
It may be like when the alcohol prohibition ended. Companies would fill the shelves with alcohol without regard to the cost of goods. Once the industry matured a little, the margins became important. There is a "green is good" element to Surna's approach as well.
The pink sheet stock you mention, IDVV, appears to be much more of a speculative entry in the MJ category. I dont think it belongs in the same converstation as Surna.
Surna is a takeover target in my opinion. Hopefully by a high profile company.
from Cannabis Business Times...
Monitoring, Controlling and Automating Your Cannabis Cultivation Facility
The devil is in the details of these three strategies, and the differences can help your business grow.
May 2, 2019
Sponsored Content: Surna
Know Your Grow Sponsored by Surna
When it comes to climate control, cannabis cultivators often group monitoring, controlling and automating the various aspects of their grow under one umbrella, but the three concepts are actually quite different, and each is an important piece to the indoor environmental control puzzle.
Monitoring systems provide cultivators with data for review. While many variables can be monitored in a cultivation system, most commonly monitored are temperature, relative humidity, vapor pressure deficit (VPD), CO2 concentration, light levels, air movement and soil moisture levels.
“There are sensors out there for pretty much anything, so we have a lot of options when it comes to monitoring,” says Agrios Global Holdings Chief Technical Officer Andrew Lange. “The more we monitor, the more data we have to optimize our grow environment.”
Of course, simply placing sensors anywhere in a cultivation area will not automatically provide useful data, he adds—proper placement is important. For example, Lange recommends placing CO2 monitoring sensors near the canopy, and at the same level, for obtaining more accurate concentration levels.
Sensor resolution and frequency must also be considered, Lange adds, noting relative humidity (RH) measurements as an example. “If our sensors are only accurate within 5 percent RH, then we can only be within a plus or minus 5 percent range for that data. If you want tighter tolerances, which is recommended, then you need a higher-resolution sensor. Also, if your sensor is only giving you one data point every 10 minutes instead of every minute, then you will generally see larger swings and less stability when taking the next step to control it.”
Controlling is the next piece of the climate control puzzle and allows cultivators to act on the data they receive while monitoring.
“Controls allow us to turn that data into actions,” Lange says. “For instance, if we have monitoring equipment for something common like temperature, it’s going to tell us that our room is 74 degrees Fahrenheit (F), but that’s it. Now, with controls, we can input a target set point of 72 degrees F, and when our monitoring equipment says our room is at 74 degrees, the controls system determines that is above the target temperature and will turn on the air conditioners in that space until it hits the 72-degree target temperature.”
Controls come in multiple configurations, from basic on/off controls to predictive software that helps optimize efficiency as it performs assigned tasks.
“Controls allow us to fully use the monitoring data we are collecting and truly help increase the quality of product produced as well as improve consistency,” Lange says.
Automation occurs when a control system is set up to replace manual responses to the monitoring systems. “We are automating some processes by completely removing the manual steps that our control system has taken over,” he says.
In the above example where temperature is monitored, for example, the monitoring system could send an alert that the temperature is outside the desired target; adjustments to the temperature setting can be made manually, or as in the example cited, the control system can automate that task.
“Automation can be implemented in many areas of the cultivation and processing side of the business to increase consistency and reduce labor costs,” Lange says.
Automating watering or potting are useful cost-effective improvements in cultivation, Lange says, while automating trimmers and packaging equipment can decrease the costs of post-harvest processing.
“The goal with automation should always be an increase in consistency with a decrease in labor,” Lange says.
Climate Control
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Surna Launches SentryIQ Sensors, Controls and Automation Platform
The platform offers a single, fully integrated technological solution.
May 1, 2019
Posted by Melissa Schiller
Vendor News
Boulder, Colorado, April 2, 2019 — PRESS RELEASE — Surna Inc. has announced the launch of SentryIQ, its new sensors, controls and automation platform that will help its customers achieve the precision environmental control, energy management and advanced automation required by cannabis growers. A formal product introduction was made April 2 at the Cannabis Conference in Las Vegas.
“As the industry continues to evolve and energy efficiency and precise environmental control gain importance, it became obvious that the existing controls systems in the marketplace were limiting our ability to reach the full potential of the systems we design. To meet cultivator performance demands, Surna has developed its own climate control platform featuring proprietary controls sequences developed with the predictive algorithms essential to optimum climate control, including direct temperature and humidity control as well as CO2 monitoring,” said Troy Rippe, Surna’s director of engineering and R&D.
The introduction of the SentryIQ product line solves two major problems for cannabis growers:
1. Cultivators can now source both their heating, ventilation and air conditioning products and their sensors, controls and automation technology from Surna, as a single vendor offering a turnkey solution.
2. In addition to agricultural considerations, critical energy conservation needs are also addressed in a single, fully integrated technological solution.
Surna can now budget and quote its sensors, controls and automation (SCA) systems to existing or prospective customers. We also have a demonstration center in our Boulder offices which provides a real-time operational experience.
Surna can now budget and quote its sensors, controls and automation (SCA) systems to existing or prospective customers. We also have a demonstration center in our Boulder offices which provides a real-time operational experience.
Our launch of the SentryIQ product line marks the completion of several milestones as part of our recently announced strategy and “Product/Service Depth and Facility Lifecycle Matrix.” Going forward, we plan to develop and sell an expanded offering of products and services to meet a wider range of cultivators’ environmental control needs over the full lifecycle of their facility. We will now be offering products and services across all four phases of the facility lifecycle, as compared to the past where we only addressed two of the facility stages. The four stages are what we define as the “full lifecycle” of a facility: (1) Pre-build, (2) Construction, (3) Startup, and (4) Operation.
article last month in Insider Financial...
Surna Inc (OTCMKTS:SRNA) Stock Price Finally Bounces
ByRyan Mitchell Posted on March 28, 2019
Surna Inc. is a company that designs, engineers, and creates application-specific environmental control and air sanitation systems for cannabis cultivation. The company operates in the US and Canada, with its engineering team providing energy and water-efficient solutions. With Surna’s help, cannabis growers can meet the demands that successful cannabis cultivation requires, including proper temperature, light, humidity, and more.
The company prides itself for its long years of experience, and it doesn’t shy away from admitting failures that have helped it grow and develop into its most successful version. In fact, it claims it has become the industry’s expert, and it has multiple satisfied clients to prove it.
However, in terms of its stock price, Surna had suffered quite a lot in 2018.
SRNA STOCK PRICE ON THE DECLINE
SRNA price has experienced massive growth in late 2017, after a long period of relative stability. The growth started around October 2017, and it continued until mid-January 2018, with its price growing further and further up. When it started its bull run in October 2017, the company’s stock price was at around $0.100. Quite a humble start, but as the company says, many of history’s greatest success stories started humbly, including Google, Amazon, Microsoft, Apple, and even Disney.
By January 2018, the company’s stock price grew over four times, reaching the value of $0.450. However, the rest of 2018 was not nearly as kind to the SRNA price, with constant drops that affected this company, as well as many others.
Interestingly enough, while the bearish market did damage SRNA price, the decline was relatively steady. The company’s stock was declining, constantly, but sharp drops were quite rare. Instead, the bears continued to damage it slowly, but much to the same effect.
Around late November and early December, the stock market crash hit Surna, as well as pretty much every other firm in the US. The crash was bad, and it took SRNA price — which was already at the pre-2017 surge levels — to whole new lows, which is where the firm’s stock price ended the year.
SRNA PRICE TAKES ANOTHER TURN IN 2019
The drop finally stopped once 2019 arrived, and SRNA price even saw several small surges, although the damage was done, and its price’s average was at around $0.075. Most of 2019 until late March was marked by relative stability, with SRNA price going up and down around $0.075 level, but around two weeks ago, the price of Surna’s stock saw another sharp decline which took it down to $0.060 level.
SRNA Daily Chart
Luckily, this support managed to stop the drop, but it also marked the SRNA price’s lowest point in 2019. Things finally took a positive turn around March 25th, when SRNA price started seeing growth again. The growth is not a strong surge, at least not yet, but it did return the price to $0.065, which is where it sits right now. Further, fresh market data shows that SRNA price is growing by 9.01%, which many of the firm’s stockholders will undoubtedly be glad to hear.
ABOUT SURNA INC.
Surna is based in Boulder, Colorado, from where the company offers its experience in the cannabis cultivation space. Through many years of experience, the company has sharpened its expertise in this industry, offering the best solutions, and teaching its clients how to provide perfect conditions for successful and high-quality cannabis growth.
The company specializes in controlled environment, meaning mostly indoor and greenhouse cultivation. So far, the company’s customers included anything from small cultivation operations to large, licensed commercial facilities. Their systems and equipment were sold around the world, in areas including the US, Canada, Switzerland, the UK, and even South Africa.
The company is willing to work with any client, be they an expert in the field or a beginner, as they have to come to known both standpoints over the long years of their history. Every one of their systems offers a full range of services, which pretty much makes this company a one-stop-shop for those looking to build or design cultivation facilities.
SURNA IN 2018
Recently, the company issued its Q4 2018 report, claiming that the revenue for the previous year has gone up by over $2 million, compared to 2017. This marked a massive 33% growth, which is quite impressive, considering the unfriendliness that its stock experienced on the market.
The 2018 net loss is also noticeably smaller than in 2017, although the Q4 net loss was bigger than in Q3. Even so, it Q4 net loss in 2018 was considerably smaller than in Q4 2017, which is a very positive development.
In November 2018, the company also got its new CEO, Tony McDonald, who noted that the company ‘was not operating profitably or generating positive cash flow.’ Following his rise to the position of CEO, the company started re-focusing the business and re-calibrating what it does, as well as how it does it. In other words, McDonald aims to bring a total reset, and give the firm a fresh start, with the same knowledge and valuable experience it already had, but with new practices which will make it much more successful in the future.
The firm’s report also presented a new business model and strategy, commented on recent developments, and set up milestones and metrics for the future, particularly in 2019.
WILL THE CHANGE AFFECT THE SRNA PRICE?
The new management and the new year seem to have a better impact on SRNA’s price, as we have mentioned earlier. The end of the stock price drop is proof enough, and with the new changes finally being set into place, SRNA price might see considerable growth in the future.
In fact, this might be a good time to buy SRNA, as a new surge might be on the horizon. It is unknown whether or not it will come, but with McDonald’s attitude and firm plans for the future of the company, it would not be surprising if SRNA price reached its old heights, and maybe even surpassed them in following months.
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Disclosure: We have no position in SRNA and have not been compensated for this article.
This is an excerpt from the latest press release. I like the way it is "almost 49%" - that's almost 50% but not quite as much.
“With these contracts in hand, Surna is off to a promising start in 2019. If fully realized, these contracts alone would represent almost 49% of our full year 2018 revenue..."
The math implies that 2018 revenue ($9.582 mil) plus the new contracts ($4.7 mil) equates to projected revenue in 2019 of $14.282 mil.
And the market cap at close today is $12.25 mil.
The 1Q report is due out in 3-4 weeks, no later than Wed May 15. Shareholders were told that annual expenses were pared by $900K and a new contract kicked in a $500K payment in 1Q. Last year 1Q revenue was $2mil and 4Q revenue was $2mil. 2019 first quarter results will be a peek into the future of Surna's expanded business model.
Regulations are getting better for the industry. Increased lending would aid companies who are potential Surna accounts. The value of Surna should be increasing based on these factors. There are still no eyeballs on this company though. Maybe a positive financial report would get Surna some attention.
below is an excerpt from a microgrid company's shareholder letter. The company has reveiwed the cannabis industry as a target for its products;
SALT LAKE CITY, March 8, 2019 /PRNewswire/ -- CleanSpark, Inc. (OTC: CLSK), a microgrid company with advanced engineering, software and controls for innovative distributed energy resource management systems, today released a shareholder update letter...
...We have completed case-studies for the cannabis industry. We believe that the opportunity in the Cannabis market is unprecedented due to the high energy usage of these facilities in both the US and Canada. In many cases our solution is capable of virtually eliminating the demand charges that can account for almost 50% of the utility charges for such a facility. The Cannabis market continues to grow at a rapid rate, and as a result the significant and growing energy demands of the industry also continue to increase. We are currently focusing our marketing efforts on the largest users in the Cannabis market, the agricultural (grow) facilities. In addition to cost savings, the loss of power can be extremely detrimental to an agricultural (grow) facility's production, and an extended outage can even cause a full loss, especially when the facility is growing a medically-certified crop. Energy resiliency is critical for these operations. We believe our solution will find a strong foothold in the market as many solutions currently available to the market provide either resiliency or energy savings but very few provide both. We believe that CleanSpark is strongly positioned to capitalize on this growing opportunity in 2019 and hope to be able to announce our first contract soon.
Surna Signs Two Project Contracts for a Combined Value of $4.7 Million
GlobeNewswire•April 9, 2019
$2.5 million facility expansion project serves 40,000 square feet of cultivation space for Surna customer
Boulder, Colorado, April 09, 2019 (GLOBE NEWSWIRE) -- Surna Inc. (SRNA) announced today that it recently signed two contracts with a combined value of $4.7 million.
1) New facility construction project for $2.2 million: This contract is for a 90,000 square foot indoor cannabis facility that is being built in the Midwest. Our customer has been pre-approved for a state cannabis cultivation license and is moving forward with construction plans. We have received an advance payment of $167,000 on this contract, which is partial payment for engineering and design services expected to be completed in Q2 2019. Payment for the remaining value of the contract, about $2.1 million, is primarily for delivery of HVAC equipment, the timing of which remains uncertain due to construction permitting and typical construction delays—which are outside of our control. We estimate that the equipment portion of this contract could be delivered in Q3 and Q4 2019. However, this is only an estimate and there is no assurance when or if our customer will obtain construction permitting and be able to accept delivery of our equipment.
2) Facility expansion project for $2.5 million. This contract is for the sale of equipment for a customer’s 40,000 square foot expansion of a fully operational and licensed indoor cannabis cultivation facility. We have received an advance payment of $500,000 on this contract and have commenced preparing the initial equipment package. Since this project is not subject to typical new construction licensing and permitting risks and the expansion building infrastructure is already in place, the full value of this contract is expected to be recognized by the end of Q2 2019 or early Q3 2019.
“With these contracts in hand, Surna is off to a promising start in 2019. If fully realized, these contracts alone would represent almost 49% of our full year 2018 revenue. The facility expansion project reflects our new strategy that focuses on more consistent and predictable revenue streams. While there are risks in all of our projects, expansion and retrofit projects are typically already licensed and operational, thus reducing the risks associated with new facility construction,” said Surna’s President & CEO Tony McDonald.
MMJ Observer
Surna Inc. (OTCMKTS:SRNA) Unveils New Sentryiqtm Fully Integrated Technological Platform
By Emily Gibson / in Marijuana / on Wednesday, 03 Apr 2019 08:02 AM
Surna Inc. (OTCMKTS:SRNA) has announced the unveiling of new controls and automation platform called SentryIQTM which is expected to help Surna’s customers in achieving precise environmental control enhanced automation and energy management in the cultivation of cannabis. The company expects to make a formal presentation of the product during the cannabis conference happening in Las Vegas.
SentryIQTM platform to meet demands of cultivators
Troy Rippe, the Director of Engineering at Surna stated that the industry is continuously evolving and thus there is a need for energy efficiency as well as having high precision in environmental control. He added that with industry dynamism it is obvious that the company’s present marketplace systems are limiting Surna’s ability to reach great heights in system design. To meet cannabis growers’ demands the company has come up with a climate control platform that features proprietary controls necessary in creating optimum climate control like humidity and temperature control and carbon dioxide monitoring.
The unveiling of the SentryIQTM will enable cannabis growers to source their air condition, ventilation and heating products with sensors, automation, and control capability from Surna which is the sole vendor supplying the turnkey technology. Besides the agricultural considerations, the platform will equally address the energy conservation needs through a single integrated technology.
New platform major milestone in Surna’s product strategy
The company can budget and state the controls, sensors, and automation of the system as a selling point to future and existing customers. Surna also offers a demonstration which offers an operational experience for the customers at their Boulder offices.
The launch of the SenytryIQTM platform is part of the major milestones that the company has made in line to the company’s strategy and “Product Depth and Facility Lifecycle Matrix.” The company is planning to continue developing and selling products that meet the growers’ environmental control requirements. Following the launch, the company is now offering products and services in all the four facility lifecycle phases compared to previously when they were offering for only two phases. The four phases in the facility lifecycle are pre-build, construction, startup, and operation.
TAGGED AS: OTCMKTS:SRNA Surna Inc (OTCMKTS:SRNA) Surna Inc.
press release; April 2, 2019
Surna Launches SentryIQ™ Sensors, Controls and Automation Platform
Solves two major industry problems with a single, fully integrated technological solution
Boulder, Colorado, April 02, 2019 (GLOBE NEWSWIRE) -- Surna Inc. (SRNA) announces the launch of SentryIQ™, its new sensors, controls and automation platform that will help its customers achieve the precision environmental control, energy management, and advanced automation required by cannabis growers. A formal product introduction will be made today at the Cannabis Conference in Las Vegas.
“As the industry continues to evolve and energy efficiency and precise environmental control gain importance, it became obvious that the existing controls systems in the marketplace were limiting our ability to reach the full potential of the systems we design. To meet cultivator performance demands, Surna has developed its own climate control platform featuring proprietary controls sequences developed with the predictive algorithms essential to optimum climate control, including direct temperature and humidity control as well as CO2 monitoring,” said Troy Rippe, Surna’s Director of Engineering and R&D.
The introduction of the SentryIQ™ product line solves two major problems for cannabis growers:
Cultivators can now source both their heating, ventilation and air conditioning products and their sensors, controls and automation technology from Surna, as a single vendor offering a turnkey solution.
In addition to agricultural considerations, critical energy conservation needs are also addressed in a single, fully integrated technological solution.
Surna can now budget and quote its sensors, controls and automation (SCA) systems to existing or prospective customers. We also have a demonstration center in our Boulder offices which provides a real-time operational experience.
Our launch of the SentryIQ™ product line marks the completion of several milestones as part of our recently announced strategy and “Product/Service Depth and Facility Lifecycle Matrix.” Going forward, we plan to develop and sell an expanded offering of products and services to meet a wider range of cultivators’ environmental control needs over the full lifecycle of their facility. We will now be offering products and services across all four phases of the facility lifecycle, as compared to the past where we only addressed two of the facility stages. The four stages are what we define as the “full lifecycle” of a facility: (1) Pre-build, (2) Construction, (3) Startup, and (4) Operation.
If you want to learn more about our new SCA platform and facility lifecycle strategy, please visit us at our booth at the Cannabis Conference.
About Surna
Surna Inc. (www.surna.com) designs, engineers and manufactures application-specific environmental control and air sanitation systems for commercial, state- and provincial-regulated indoor cannabis cultivation facilities in the U.S. and Canada. Our engineering and technical team provides energy and water efficient solutions that allow growers to meet the unique demands of a cannabis cultivation environment through precise temperature, humidity, light, and process controls and to satisfy the evolving code and regulatory requirements being imposed at the state, provincial and local level.
Below is an excerpt from an article about a marijuana growing company. The companies mentioned are in a different field within the cannabis category but the sales dollars compared to market cap is worth noting.
Surna had revenue in 2018 of $9,581,968 but has fallen off the radar of the speculative investors. The sales revenue is almost equal to the market cap ($14 million). No outstanding debt. The low market cap of Surna compared to sales was mentioned in the conference call by one of the callers.
here is the excerpt;
"The valuations in this growth industry are impressive, most companies being valued as a product of their current and future sales as they all scramble to capture as many accounts as possible before turning to the bottom line. MariMed Inc. (MRMD) has a $750 million market capitalization and revenue of $9.9 million in the trailing twelve months. Tilray (TLRY) has a market capitalization of $6.7 billion and revenue of $32.7 million in the last twelve months. Cronos Group (CRON) had only $11.71 million in TTM sales yet has a market valuation of $3.77 billion."