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In Q3 and Q4 of 2020 Surna booked $7.9mil in new contracts. In Q1 2021 they booked an additional $5.5mil, for a total in the last 3 quarters of $13.4mil.
In 2020 their total year rev was around $8.5mil. 2019 rev was around $15mil.
With 1/4 of the year done they already have more than 2020 revenue booked and nearly hit 2019 revenue.
I wouldn’t be surprised if this years revenue is AT LEAST $20mil.
It is mind boggling that a company with this level of growth and total revenue potential is trading at this level.
Right now their market cap is $16.54mil.
They are undervalued even if we assume no multiples.
If we use a conservative multiple to match other cannabis companies that are trading, say maybe 5x, and they are on pace to make $20mil this year, they should be trading at a $100mil market cap, or roughly $.50/share.
After today’s PR they don’t need to do a reverse split. 1mil shares voting no over here
You should get the email from your brokerage, or it’ll appear in your notifications in the brokerage app.
Just got the link to vote on the proxy. What’s everyone thinking?
Good point. Even before the proxy I have always anticipated a breakout Q1 2021.
Looks like it was a buy of 330k shares, then someone sold a couple thousand to drop it back down
Exactly. Went from pennies to $20. Seems pretty successful to me.
The whole point of this discussion is for them to begin acquisitions, once the vote happens in May.
CLSK is a prime example of what Surna is trying to do. R/S to nasdaq, ran to $40.
Dude, your messages show you clearly haven’t read anything. Literally nothing.
You may as well have never heard of Surna before.
I think you’re making a lot of assumptions. If Surna buys companies to increase revenue and profitability, and generating a positive EPS, why would they short? Canadian LPs were in an arms race where acquiring companies and issuing shares were not for the reasons of increasing profitability. It was all top line growth to gain as much market share as quickly as possible.
Surna on the other hand, is acquiring companies to increase revenue and profitability in the short term, so they can uplist to the Nasdaq. This isn’t an arms race for Surna, this is building a powerhouse of growth and profits.
If they were trying to grow quickly without the goal of bottom line growth, they would have done it when they went to .50 during the cannabis hype in 2018.
SRNA is about to pop. Low volume base building, accumulation, massive support.
Supreme Cannabis was just acquired by Canopy Growth for ~$435mil.
Consolidation is happening, and money is being spent. This all bodes well for Surna.
So $42mil in assets, no debt, $12mil in revenue, profitable, cash flow positive, and its trading at .45?
I’m in.
A couple people on here said they own 5 million and 3 million shares. I own 1 million.
Tony owns 6.5 million and Brandy owns 13 million.
The wildcard is John Jensen who owns 15 million. He’s not on the board so I’m not sure his role.
Morgan Paxhia owns 33 million preferred shares.
I think enough retail holders voting can make a different. I have several colleagues who own hundreds of thousands of shares as well.
I still am up for the zoom call with everyone here to discuss the proxy.
Great post.
Tony came to Surna and basically rebuilt the company from the ground up. He also navigated the company through a pandemic, and managed to INCREASE their cash position without using shares and actually eliminated all of Their debt.
He said many times before, his vision is to grow Surna organically and through partnerships/acquisitions, so they can become a “widely held, actively traded public company on a major exchange.”
Tony is not going to increase the authorized shares and go wild with dilution. This is part of his plan for having currency to acquire companies.
They are already increasing their sales, as they booked $8mil in new contract in just two quarters, and signed a $3.2mil contract this year already.
The industry is booming, and Surna is riding the wave, now they are entering the next phase of execution.
I believe they will only issues shares for acquisitions, or to raise capital with shares to acquire companies. They will be responsible with the dilution and only dilute if it means the ROI far exceeds the cost.
Once they go through with their strategy they have until Dec 31st to do a r/s. They have an aggressive plan laid out that needs to be finished by Dec. 31st.
I have been accumulating Surna since 2016. I traded the run to .50, and traded the run to .20. All with the intention of buying back lower.
I now own around 1 million shares. Tony owns 6.5 million shares. Brandy Keen owns 13 million shares.
They have skin in the game just like us. I trust the plan. They have proven time and time again that they are in it to win it and their reputations are on the line.
I say we all schedule a zoom call and discuss the proxy, and decide which way we all vote.
They also said they want to increase revenue through partnerships and acquisitions. They clearly want to use shares to acquire.
A good example of this is SHWZ. They increased their authorized shares in order to acquire a ton of companies. They are now a $100mil rev company because of these acquisitions.
I’d like to thank everyone who has sold to get SRNA down to .07.
I just loaded up these cheapies.
Nothing has happened yet. We can vote no on all of these proposals. The fear on this board is exhausting.
It’s really clear you haven’t done enough DD to actually understand who Surna is. You’re not seeing the big picture.
How many shares do you own? You can always vote no on the proposals.
I always appreciate your posts. I trust management in their plans.
I agree. I think the timing will be important, and I believe they’re fully aware of the importance of timing.
What scheming? Name one instance of scheming here. TRTC is trash, Surna actually has a plan. Look at their growth, they have over $10mil in backlog, they survived covid with no debt, and they partner with Anden, who is in the same building as Aprilaire, a global company.
Yeah TRTC is absolute trash. You can’t compare them to Surna.
Surna has no debt, growing backlog and they are in a position to seriously grow when legalization happens. They have a very important business in this industry.
Their intention is to uplist, with a clean share structure that is appealing to large institutions, and to eventually get acquired by a large hvac company like Seeley.
TRTC has always been a sketchy dumpster fire.
That was something I thought about last night after reading it. A r/s with a radio or 10 or less will reduce the # of share outstanding to 100mil or less, making the stock much more responsive to moves. It they r/s to $4, it’s easy to say it would move up to $5 - $10 with little volume. If you hold over 100k share post split and it moves you can make more money a lot faster.
My math shows if I hold 250k shares post split at $4 and it moves to $7 or more, the profit is exponentially higher.
Go to their website under investor relations, and open the proxy they filed, 14A. Gives you all of the info, but the voting results will be during the shareholder meeting in May, all shareholders of record as of April 1st will be able to vote.
Not sure, I imagine you can email Surna via their website and direct it to Tony, unless it’s Tony@surna.com
I say we test Surna and vote no on prop 3 7 and 9, vote yes on prop 4.
We have to all vote no on proposal 9
That’s a good point, but if it’s not Tony who would it be? The new directors, Morgan Paxhia trying to get his preferred converted, there’s a guy named John Jansen listed who owns over 15 million shares. Who’s that guy?
I’ll vote no on the r/s and the auth. Shares increase, yes on the preferred share conversion.
I think they want to uplist in order to get attention from larger institutions and investors, and eventually get bought out or merge. Unfortunately current legacy holders get screwed in the process of getting to the Nasdaq, unless you own a LOT of shares.
I own close to 1mil shares so I’m going to be considering which way to vote on this given the possible logic of why they’d do this. Not to say my votes will swing it either way but worth a shot.
I would definitely like more analysis on this from others. Trying to get a clearer picture. I may just email Tony today.
I read the proxy a couple times to fully digest the information. Here’s my interpretation:
1. The proposals are not in chronological order in the proxy in terms of how they will be executed. I see the order being – (i) Execute the preferred share conversion to eliminate the outstanding preferred shares, mostly owned by Morgan Paxhia, and convert them to common stock. (ii) Increase the authorized common and preferred share amount. (iii) execute r/s and reduce authorized shares. This is all part of having a pristine share structure.
2. The increase in the authorized shares appears to be for the purpose of aggressive expansion of operations to increase revenue/backlog conversion, increase sales volume and frequency, and for partnerships and acquisitions. To do this quickly, they will issues share to raise capital. They need more shares available in order to issue them. This comes at an interesting time, as the SAFE banking act will allow banks to work with cannabis related companies without consequence, which would significantly reduce the need for using shares as a tool to raise capital, though issuing share allows to quickly raise capital without adding debt to the balance sheet. This is all under the assumption that the SAFE act will pass in the short term.
3. After this aggressive expansion and using shares as currency, they will want to and need to clean up their share structure by reducing the number of authorized shares and outstanding shares to appeal to larger investors and institutions. Therein lies the need to execute a r/s.
All of this points to one thing – Surna anticipates a huge year of growth, and they will want to uplist to a major exchange (NASDAQ) because of this. It is clear Surna has a lot going on behind the scenes, and they want to use this momentum to execute on their vision of being a widely held, actively traded public company on a major exchange and in the hands of major institutions. It also points to them not wanting to be the target of a takeover until then.
They have until Dec. 31st, 2021 to execute on all of these things, so their plan is to uplist before the end of 2021, or shortly after Dec. 31st, beginning of 2022. Assuming their progress will be shared and cause share price appreciation, this increase in share price will reduce the ratio of the r/s, which is good for us. With all the catalysts in the near term for the industry (SAFE, full federal legalization), I see their share price going parabolic. For example, if they move up to $0.50/share, then I see the reverse split ratio only being between 4 and 10. The higher the stock price, the lower the ratio, assuming $2.5 - $5 post split is the goal.
If anyone has an argument against my interpretation I would like to hear it. Seriously.
2020 reported backlog does not include the recent $3.2mil contract they secured in 2021, so backlog is over $10mil including that contract.
Ended 2020 with $2.285mil in cash, an increase from Q3 by $285,000.
No debt, backlog increased by $3.7mil in Q4, totaling ~$8.5mil.
They booked $7.9mil in new contracts in two quarters.
Now that 2020 is officially over, 2021 will be the year of Surna.
Q4 earnings out
$3.39mil revenue, $64k profit
Potential reverse head and shoulders here? Lots of support at the 50ma. Stochastic rsi on the weekly is curling up
It’s clear this is a market based correction, as there has been tons of buying as of late,. Selling looks like stop losses being triggered. Don’t use stop losses use mental stops!
News was great, earnings should be good. Good buying opp at .10
Remember what Tony has said numerous times.
Surna’s vision is to grow organically and through strategic partnerships with an end goal of a mergers/acquisitions. Revenue growth through acquisitions will allow them to generate the revenue to qualify for Nasdaq listing.