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I agree up. If they are pushing out quality product like they claim, then they shouldn't have any issues continuing to get the sales. And IMO if they were running at max capacity for the amount of space they have then they should be able to push out 4-7 a month. Best is yet to come here.
Although this could be a possibility. I wouldn't bank on it before the other 2 plays I mentioned happen. The biggest thing going against a sellout is the current market cap. Most potential buyers going to look at that as a way point for where to begin, and I can't imagine that they will want to sell for roughly 20 mil when they are currently dragging in 2+ a month in sales.
I agree let them leave. IMO there's 2 easy plays here. 1) Stay long & see what happens. With the sales continuing to improve, eventually they should begin to find a way to start reducing the deficit and create real value for the holders. 2) Wait for the hype. Again IMO the hype is going to come sometime this Q. I can't imagine they go through the full Q without giving some more info on that LOI. If they make no progress on that this Q. Then there's really not much excuse for more liability with the sales numbers coming in like they are.
The good the bad and the ugly
The good: Seems Yu has enough capital to keep things running for a while. Sales continue to improve. Cutting dead weight and moving forward. With the costs of the farm, they should be able to make an overall large profit from it.
The bad: Another $1.5mil in liability. Not much transparency in the #'s at the farm. Seems that could be being operated and managed better than it currently is. I believe in the Q it says they are still in the process of finding a good management team for it? This makes it seem like he is trying to run it himself, and just doing what he can with private contractors instead of maximizing it's full potential.
The ugly: The AS is pretty much absorbed by the execs in their preferred shares. Seems as though they can convert preferreds to commons at will? If any of them exhausted all their preferreds the OS is going to go through the roof. 30% sales bonuses when carrying $1.5mil in liability to the holders tastes a bit sour to me.
Seems as though they could be a great company. But must find a way to manage things better. If they really care about creating stockholder value they need to go cheap on spendings a few Q's and show that they actually can begin to reduce the deficit. Can't finally begin to make $3mil+ a Q and keep adding to the deficit and expect a ton of investor confidence from it.
Open to thoughts.
Imo there’s investors interested. Looking at the trades a lot of those big block trades have stopped. MM’s trying all they can to shake off loose hands before they allow it to do anything. When it does decide to move, I believe they are setting it up for a leap not a run. With month after month of record sales I’d think the accumulation here is beginning to add up.
Right? Market cap eventually going to have to catch up to value with them sales. The continuous $45 million deficit they’ve ran up throughout their time is going to begin to disappear pretty quickly with the sales like they are getting.
I’ll ride the ride. Eventually profits are going to wipe out all debts. Even if they chose to off another 30mil of restricteds, to gain roughly another $3mil to finance a new farm. Ultimately in the long run if their not just issuing new shares from the authorizeds and adding on to the outstanding shares. And all they are doing is selling their restricteds that are technically already issued. Then Imo the market cap in the long term will have no choice but to eventually recognize the numbers and growth. A new facility is going to be huge if they can make it happen.
MM’s make the prices not the company. If they sat around doing nothing no guarantees prices would have risen, as them selling restricted shares does not change the outstanding shares or the market cap. They couldn’t help the timing for when they needed the funding to get the farm going. Rent there alone is I believe 275k a month? It looks like when they began last selling these restricteds though, that investor confidence took a major plunge. However that should return once investors begin to realize they sold off roughly $3 million in equity over a 6 month period to get the farm going thats now capable of producing at least $2.3mil a month. It’s not like many of these pinkies adding to the OS or selling the equity they already have simply to pay salaries. IMO NUGS is a goldmine. No questions of if. Just when?
If you look at the # of shares that went from restricted to common from the last 2 quarterly’s. You’ll see it’s about 30 mil. If you figure they got an avg. price of .10 a share that’s only about $3 million (& again thats 2 quarterly’s so for about 6 months). So theoretically with sales of 2.3mil a month they shouldn’t need to sell near as many if any of their restricted If they can keep them sales numbers up. Also I think people are viewing this from a completely negative perspective. The market cap is based off of the complete Outstanding shares not just common or restricted alone. Their not taking from their authorized shares and adding on a ton more to the Outstanding shares. By selling their restricted shares, they were simply reducing their own equity within the current share structure to finance their operations.
I believe yes restricted shares are becoming unrestricted at a continuously slow rate. It's equity financing. This is why the float has grown by about 30 mil from the 3rd q of last year. However the Outstanding shares has shrank a bit since then. They have roughly 700mil in un-issued and unused Authorized shares. Float is roughly 71 mil outstanding roughly 269mil. I pulled this from the annual
"As of March 31, 2020, 71,427,895 shares of our Common Stock are free-trading and in the public float, all other shares are restricted"
So according to that statement there's about 198mil restricted shares? Most of these sit with the company.
Many would call selling their restricted's into the commons dilution. But it's not on the level of maxing out the OS or issuing more from the AS. As long as sales continue to improve then the sale of restricted shares should slow or stop. IMO this form of dilution taking place here was necessary in order to get the farm where it is. Their expenses are astronomical. Once that business becomes 100% self sustainable, the only reasoning to continue with this kind of dilution would be to start the next farm.
They definitely could step up their web game.
Needs to pick up the volume. 2 days after announcing record monthly sales #'s for like the 4th month in a row, and looking like it might not move half the avg volume for today. I would think the accumulation here would be strong with month after month of record sales. The low volume today may be efforts from MM's to not acquire large blocks in order to shake off weak hands. They can let the price slide a bit to make it appear as if the bleeding is continuing. But hopefully when the record quarterly comes next week it will create a buying frenzy.
Won’t hurt my feelings if I’m wrong. I keep adding to my position and holding. Figure eventually the market going to catch up with all the positivity happening here.
Too many weak hands have given their shares to MM's. When there's news they have built strong walls of resistance. With the amount of the low float that they possess, they are having no issues in filling the orders. Until more whales or massive volume comes along, it's going to be a rough climb up.
The volume IMO is low. Be very interesting to see the quarterly. If there hasn't been any or much for dilution, then what in the world is going on here? Month after month sales getting better. But the price continues to only hover? When will the market catch on to the growth occurring?
The biggest flaw in your idea of massive dilution here is the CEO himself has 17mil+ common shares. Now even with that being the case some dilution may be inevitable. However, most companies in this land, the CEO’s are instantly offing whatever shares they get or can acquire. It seems to me the actions being taken by the company are really trying to create value here. If their idea was to go through a phase of massive dilution I don’t think the CEO would be wanting to sit on as many shares as he is. If massive dilution was the plan he’d be like all the other CEO’s in pink land just offing those shares for extra cash, cause he’d know the massive dilution would be killing the pps.
I wondered about this myself yesterday. Last Q says 180. But with 360+ trades yesterday, one has to think that there's many more involved now.
IMO MM's sitting on too much of the float. They probably easily picked up a million shares or more per penny drop from the last wave of good news. Going to need a few days volume like yesterdays to push through the resistance walls they've built before we ever see it run. The good thing is they already hold keys to a vehicle that's going to smash through those resistance walls like butter. The MM going to lose complete control of this when they announce that they've made progress on that LOI.
I'm not biting. Fresh news don't even seem to breathe much life back into this. Should have just released the info on twitter, and saved the PR fees. The financials not being audited is only going to lose more investor confidence. I follow this cause I'd like to make money here. But it sure don't seem to be the right time to be picking it up yet for that?.?
I totally agree with you. Month after month, this continues to get better. No way to stop the trend upwards as long as that continues. No reason to believe it won't when the CEO is making comments like this in the news today.
Yu added, "July was great. But we have our sights set on far bigger numbers in the months ahead. We are on the right track, but we still see plenty of opportunities for additional growth, and we look forward to continued expansion in market positioning during the second half of the year."
IMO the markets are eventually going to catch on and recognize the growth. People should enjoy these cheapies while they are around and they can get them.
I’m sure they haven’t forgotten about it. They could have mentioned it. But I kinda like the aspect that their not just going to feed us bs. I’d rather wait for hey we’re making sure this is happening. Rather than an eh we’re still working on it
I'm still on hold for buying this. Still waiting on that RS announcement. Id be down 20% from when I first called RS, and you were telling me those prices were a steal. Barcharts says more than likely them audits are not coming. IF your CEO spent half as much time on them audits as he does on twitter they'd have been done 2 quarters ago.
https://www.barchart.com/stocks/quotes/AXXA/opinion
I'd think so. July #'s should be in by now. In an interview Simon did in early July he made it sound like the July #'s so far had been good and seemed as if he expected them to continue. Even if they don't exceed the June #'s, if they are comparable to June then nothing to be sad about here. Since the farms primary focus is quality, I expect sales trends to continue to grow.
With the lack of Volatility today, I think the market has settled from the last wave of new and has determined that the approx. real value is currently between .072 -.075. The real value IMO should only increase as sales continue to do well, and expansion progress is made. A lot of stocks prices focus on the future, and I think here that aspect has been slow to catch on. I blame that on the current market conditions, and the fact that there has been a lot of bad apples in this industry. I got in when it started to trend down from the last wave of good news. But I got in looking at the bigger picture. The fact I'm currently a little down from where I hopped in and have averaged down from, isn't bothering me in the least. Went to .12 basically with the record sales month and news of the LOI. They make that LOI a reality .12 going to be chump change for where this is headed.
Still holding. I've Avg down into the .08's now. I might make 1 or 2 more average downs if nothing happens. Record quarterly and news hopefully only days away. Record #'s alone should provide a little boost, and should also maintain the walls at the lower support levels for a while. If they can make progress on that LOI in the next month or 2 IMO this should begin to take off.
I think upper.06XX is as low as it is going to get. Massive support right at .07 it seems. Quarterly should be out any day, and should contain record sales numbers. I can't imagine them dropping that and not providing any updates, or at least bragging about it.
Been keeping up with some info on this today. Lots of volatility. At times the spread becomes massive. IMO definitely some manipulation going on. When the price is trending up the # of shares on the bids stays reasonable or even gets increasingly strong. when it's hitting high .07's - to low 8's shares on the bids and ask become more logical. When it has been spreading out though and is at the lower end the # of shares on the bids have been for blocks of 150k or more.
Should be an interesting week. Imo they gotta get that quarterly and news out. If not when it does come it’s not going to be as effective. If MM’s keep being allowed to soak up cheap shares to build their walls, it’s going to be harder to break through them.
I think the MM have been panicking a little here. OTC shows they only have about 250k shares out for the ask. Been similar for a few days. Over the last several days there's been loads of small trades. This leads me to believe, that they are currently soaking up shares anywhere they can get them. With good news and a spike in volume it's going to become rough for them to fill orders and there will be no where for this to go but up.
Chirp chirp chirp. Looks like another sideways day. Probably going to be as such until they give news.
Massive spread at the moment. Which sides gonna lean today?
It seems they did a real job on their customers. But you said, "As soon as I saw them show up I sold out." Where and win did they show up here? In those articles you provided, I don't see anything connecting them to NUGS. Do I need to re-read a quarterly or the annual?
Killing it on the DD sir! It's amazing how many investors will throw cash at stuff and know absolutely nothing about it. I averaged down (again today) and got some more @ .079. Those July #'s and the Quarterly are coming. With a bit of luck hopefully some more news on some progress with that LOI. I've lost a bit here so far hopping in initially at .11 But again, I feel if they can keep the good #'s coming, and can get another facility up and running the stacking here is going to pay off.
Where is this knowledge viewable? Not trying to argue against the information you're providing. Just interested in learning how it is acquired. I have found multiple platforms showing the trades that have occurred. But have yet to ever find one that points out who is making the trades. I've seen platforms that discuss short rates, and details into the # of shares shorted and need to be covered. But again these platforms I've found never point out who the MM short is.
This is interesting. Is there any documentation to support that what he is saying is not true though? Just cause he is an independent director does not mean he is being paid in shares for his services. Good catch tho. Worth raising an eyebrow for sure.
I just don't get how he legally gets away with it time and time again. No longer even a pump n dump as the pumps really not even there anymore. Been going on so long and stinks so bad now called a skunk n dump.
I can’t see anyone doing good DD on this and wanting 1million shares, let alone 500mil. This stock is just an excuse to keep the CEO paid. No profit ever, always tanking always RS. Same song and dance.
I think it might be all the tweets getting to me. I’m just scouting it. Whole 2k spent on this yesterday. Massive accumulation. I think there might be a time to make a move here. But I’m not ready to jump into the trap yet.
Where's that RS notification button for this? Once it gets there, this is going to be a steal. They going to pull off that RS, then release them audits. And this thing is gonna shine. They going to be able to list on any market they want! \O/
I didn't board the Nugs train til it was at .11 I was kinda hoping the rising price trend would continue and it would blow up as well. Obviously that did not happen though. I have averaged down a couple times. I will be doing that again tomorrow or Friday. I think the financials coming will easily keep it afloat. If they ever really do something on that LOI they issued, I don't think either of us will regret our position here.