'Im not the greatest chart guy but it looks like the 50 day moving average here would be support.

So if we are going to bounce this is the price we ought to see it kicking in.

Closed above the Declining Tops Line.
Need one more green day and we will know the trend has changed.

First close above DTL since April4, 2019

Its cheap!

Breaking the 50 dma Next resistance would be .06 ish.

INCREDIBLE VALUE. Based on using ANY and EVERY accepted valuation method used in the investment banking world today.

Exceptional opportunity.

Nice day little green day for virtually every pot stock on the market.

As the sector as a whole comes back, so will POTN.

WHAT makes a loan toxic are the terms of the loan itself. ie, does the loan have a conversion floor...ie, giving the holder the right to short the box to zero is not a good thing. Does the loan have an escalator clause on the number of shares ...ie, if the stock goes below a given stock price does the escalator clause kick in a double...triple ...more! the number of shares they can convert to and sell.

The simple conversion ratio does not make debt toxic. It is the ability of the holder to do riskless shorting against their position that makes debt toxic.

Interesting opinion.

I was looking for things more factual like:
Valuation compared to peers, ie, xSales, xEBITDA etc
Growth rate compared to peers
Financials compared to peers.
that kind of stuff.

The entire cannabis/hemp sector has seen its ratios compressed since April 4, 2019.
The valuation that said POTN was worth 12 cts and cheap (as per your post) was based on the ratios for the industry at that time. Those ratios have compressed across the entire industry. POTN is not immune to sector ratio compression. These companies as a whole were trading at an average of 7-9x sales in April. They trade much less today. It is hard to blame POTN for that.

No one is interested in POTN except legacy retail shareholders. I am not sure that is a valid statement and can not be determined by the share price. It could be the legacy holders that are the sellers and the new buying is from the new buyers. We don't know.

I know the 3 guys that are in trouble have not helped matters at all. They do cast a perception of fraud across the board - but from without POTN being directly named in the proceedings I am not sure what value fretting over those guys do for Diamond sales. Corrupt insiders can be replaced. As long as the numbers are not corrupt, which I maintain it would take one crazy CEO to publish bogus numbers a couple months after becoming a reporting entity.

Takes both sides to make a market. I personally value my investments over a business cycle. It is much too soon to say if I am right or wrong. When the sector pops back up we will know. If POTN stays in the cellar than I was wrong. If it pops up with the sector...well I will buy more.

https://www.cnn.com/2019/09/12/business/aurora-cannabis-earnings-cbd/index.html

Think you will see more and more cannabis companies buying established CBD brands.

Why not POTN.

Curious about the perma-bear stance that is out there on POTN.

Trying to understand it.

Can anyone help me with the basis for that all-out -everyday bear position using numbers over the past 2-3 years so I have a better understanding? I know share count is an issue, and the lawsuits against the 3 amigos. What else?

Im open minded and not looking for a fight. Maybe I am missing something important. I appreciate the replies.

Definitely. I would expect there will be plenty of that.

Hagen's shareholder letter spoke to the issues in your post very well.

Let's see what this Q holds.

China & CBD (and POTN?)
The investment pool will keep growing.

https://www.inkstonenews.com/business/how-china-gearing-fuel-americas-cannabis-cbd-craze/article/3030424

Would not be surprised to see Chinese interest in the US distributors / brands coming soon. Just a hunch.

POTN has solid revenues and huge opportunities ahead. Financials look pretty decent - actually very good compared to many of its peers.

The issue is removing the noise from the numbers. The noise of the lawsuits against the 3 amigos have little to no bearing on POTN's sales. Diamond is a top brand with incredible value and no one could careless if the some investors worked their stock positions.

I've worked with MANY "penny stock" companies over decades through a multitude of markets, very familiar with how these companies work and the struggles they face. I like the opportunity that the "noise" has created in POTN. We called it Aces back 2 Back. Its when you have the most interest in seeing the game go forward.

The share count is the share count. It takes a lot of cash to grow a company in an emerging market. There are only 2 investments in the entire world -- debt and equity. Everything is one or the other or a variation of the 2...but its either a debt instrument or its equity. Unfortunately debt is not an option in the CBD sector. So you are left with "equity" and the hybrids. The ONLY thing a company has to create cash when you have no sales is you sell equity. 2-3 years go when CBD was a huge unknown...it was EXTREMELY tough to raise cash so you make deals with the devil. So you sell converts. Cant grow without cash - what else were these companies to do? Those deals are coming to roost now....but we would not have created $25 mill in revs without the cash. So 1 billion shares. Its still under 1x sales. Thats a CRAZY number ... when you know numbers.

I'd ask --- what would YOU have done to create the cash needed to launch and grow this company. The share count is not out of line with the sector. The noise presented by the law suits in my opinion is an opportunity.

3 decades working with "penny stock" companies. (alway wonder why that term is used as it if was a bad thing) I have never had one trading under 1x revenues, virtually no debt, 3 year growth rate off the charts and a defined sector in a secular bear market with identifiable temporary reasons for the extreme bearish posture of the stock. I like the risk reward here -- Aces back 2 Back.

Funny you should bring the 94,000,000 TD AMeritrade share count up. That is actually how I got here. I just assumed TD Ameritrade had their act together and had the right numbers. I wouldn't be here if TD Ameritrade didnt screw me.

So I've had to get to know the company a little better...much better.

First, reverse stock splits don't BK companies.

There is absolutely nothing shady about POTN's revenue numbers. POTN is a fully reporting company and a CEO would have to be INSANE to cook the books having just recently becoming fully reporting. Hagen can not be that stupid.

Even at 1 billion shares outstanding POTN trades at a discount to its peers.

Under valued - will take the sector as a whole to improve to see advances in the stock price.

.06 is well within reason.

If POTN was trading at the same valuation as CVSI ... which is down 80% ... POTN would be pushing 10 cts.

The entire sector has been crushed. Just flat out ugly.

That will change. I remember when POTN was trading at 1 cent and the talk of them going out of business and how much of a scam they were.

Then when it hit $1 I remember the talk about how they were going to $20 and everyone would be retiring.

Truth is its not a 1 cent stock and its not a $20 stock. And in my opinion based on relative value to their industry it is definitely not a 2.8 cent stock. POTN should be priced in the 3-4x sales range given the secular bear market CBD companies are in. When things show signs of improving POTN should work to a 6-7 x sales valuation until the CBD sector matures.

Its my opinion and based on the numbers / ratios found within the sector.

I find it amusing you used all those paragraphs and never once said how the lawsuits directly impact POTN.

I found it amusing you inferred that POTN has cooked their numbers.

I like POTN .

I agree - well said- the sector is gong to have to show some signs of stability before new investment comes in.

It gets to be a point of how dead the money is for how long. Right now -- looks fairly dead across the board.

Personally I think that changes as the rules become more defined and the benefit of (or lack there of!) CBD becomes better understood.

Love to see a reversal pattern in the technicals soon.

POTN is now a reporting company. It would take an insanely stupid person to go through the maze of becoming a FULLY reporting company with the SEC and then post bogus numbers. I do not believe Hagen is an insanely stupid person.

I have a list of over 50 publicly held pot stocks that are currently trading more than 90% off their highs. NOT ONE is trading above their April 4, 2019 price. The sector is in shambles. Its a fact.

There is no red flag caveat emptor -- its black and it is not there saying the company is guilty of anything. It signifies investors should be cautious for a multitude of reasons. In POTN's case an investor should be cautious due to the 3 amigos. I ask anyone to tell me, explain to me. point out to me what POTN's part was in the allegations against these 3 individuals. To further that last statement - what SPECIFIC liability is carried by POTN. WAS POTN named in the lawsuits of the 3 men where "allegations" are being litigated? HOW does the predicament these 3 men find themselves in impact POTN ? Outside of the fear it creates - what real damage does it do to POTN and its ability to sell Diamond CBD...or any of its other products. Its a real problem for those 3 guys ... is it a REAL problem to our company outside of the fear it creates?

Most every company I have owned or worked with have faced class action law suits : ) Class action suits are a joke. A cloud that hangs for a while and goes away. The only people that make money in a class action suit are the attorneys. The typical loser in a class action law suit is the corporations insurance company. A simple fact. I'd wager to say most every successful company at some point faces lawsuits. Class actions are a part of being in business. Wouldn't lose an ounce of sleep over any of them.

Just about every pot stock I know of has issued hundreds of millions of shares. CVSI being an exception, the list of pot stocks that have as many shares as POTN has outstanding is long. I can run a screen and show you if you like...but not sure how to add an attachment on Investors hub. Dillusion sucks, but the sucking sound is from the entire sector. How else would you expect these emerging companies to find cash to grow?????? How would YOU go about finding cash if you were in POTN's (or any of the other pot stocks ) shoes??

At .8x sales, carrying a decent balance sheet in an emerging sector. I think POTN is crazy cheap.

The market on POTN is being set by more fear than reality at this point. The sentiment is not being set based on POTN financials. There is no valuation method used by investment bankers today that would give you POTN's current valuation.

A misguided bullish thesis could only mean POTN's published numbers are not real.

In my 3 decades working the street - I have seen this same scenario many many times.

The entire sector is currently wasteland. I'd ask anyone to find me a pot stock that is up from April 4, 2019. I can certainly show you pot stocks that are down the same % and more than POTN.

The legal stuff? IF POTN is not directly involved in the fraud of the 3 then it is just noise.

CDB is not going away. When the FDA dust settles the ones who stayed will be champions.
Simply small speculators driving the valuation at this point. That will change.

Hope most of you are still there when it does.

Pretty optimistic this pullback is temporary.

At well under 1x sales in an industry where 4-9x is the norm not sure I care too much about the fraudster investors if their issue has no direct impact on POTN's sales. (pot stocks are in a deep secular bear market so seeing the industry average over 4x sales makes under 1x crazy)

.8x sales is crazy cheap.
I did a screen of companies selling at .8x sales and its like seeing a unicorn.
The outside lawsuits have cast a shadow on the company's image ?

Love to know how the lawsuits against the 2 investor fraudsters impacts PotNetworks Holdings?
(btw: thats an honest question -- I dont know the answer but wish I did- anyone have thoughts?)

It would be very hard to find a private company you could buy into at .8x sales let alone a public company in an emerging sector growing very quickly domestically and internationally. IF the lawsuits have no impact on the actual company then this is mind boggling to be in a fully reporting company with decent financials -- crazy.

Curious how the lawsuits against these individuals translates to PotNetworks business?

Obviously the bad press effects the perception of the company and lends itself to creating fear - but curious how the the lawsuits actually effect the company? If the individuals are completely guilty of fraud ... how does that effect Potnetworks as an ongoing company.

Take the "ifs" out of the equation because you can put "if" in front of anything your mind can come up with.
Im interested in knowing how POTN is directly effected by these fraudulent investor dudes? Are the past quarterly numbers in jeopardy in any way? Are the future numbers in Jeopardy in any way?

Is PotNetworks Holding specifically targeted in any of the lawsuits?

At less than 1x sales this seems to be stupid cheap. Not sure what the lawsuits have to do with the valuation in the end. If the financials are real that have been submitted - money is money - its cheap. CBD is not going away.

The whole sector has taken a beating. A huge beating. Even then you are looking at a number of companies that could pay 4-6x sales and still see the acquisition add value.

Look at CVSI's chart -- one of the top CBD companies out there with stellar financials - it doesn't look much different than POTN. Its ugly in CBD land.

Hi Dan- a big box deal would not require an 8-k filed. It would not be a required material event disclosure. Sounds like it would be / should be a material event but it would not have to be disclosed. BUT they certainly could memorialize it if they wanted to. There are many reasons a company might choose not to disclose such a deal - for one competitive reasons. In my industry we choose not to disclose major sales wins regardless of the dollar amount of the deal. Here is a great reference for the 8-K reporting. https://www.fool.com/investing/general/2015/06/16/form-8-k-things-you-need-to-know-about-companies-w.aspx

You are right

https://www.nasdaq.com/article/share-based-dilution-has-crushed-pot-stock-returns-cm1157064

S-1 is for a selling Share Holder not POTN. The company will not receive money from the sell.

This shouldn't add to the share count ... I believe it is part of the current 700 mil diluted share count.

Heres the link: https://fintel.io/doc/sec/1746563/000147793219005250/potn_s1.htm

Its a great idea. I think you are on to something.

Oz is promoting his CombatGo big time. https://www.combatgotv.com/

IF CBD oil works ( doesn't work for me! ) what a great connection-- CBD and the aches and pains of Martial Arts. Even if POTN and OZ would not hook up on a BOD deal I would have to guess OZ would LOVE to have POTN as a sponsor to his channel which is a promotable solid marketing connection in itself.

I dont know OZ personally - never met him - just his company. I have some interest in the OTT space so Ive crossed paths with his company a few times. I never put the connection of OZ and POTN together until reading your post. I'll run it up the flagpole with a contact and maybe your post is a seed that could grow. Maybe not. Who knows! Good things always have to start somewhere. With OZ loving Martial Arts and POTN already sponsoring a fighter - I am sure it will be at least in interesting conversation.

Seeing Dr. OZ did an investigation on CBD. His findings were that many CBD products sold did not contain what you thought they contained. It was appalling.

Dr. Oz is as accessible as any other business man. I would have no idea if he would ever be interested or if POTN would be interested but it would be a very interesting conversation.

ODDLY enough.... look at the connection with the MMA fighter POTN sponsors and the CombatGO OTT channel Dr. Oz launched. Interesting.

Ha! I think you are on to something!

Dr. OZ is an AMAZING business man. I mean AMAZING. His work in OTT sector is phenomenal. He founded and owns JungoTV. JungoTV partnered with Cinedigm (CIDM) to launch CombatGO , HallyPOP - both growing like "weeds" world wide. Dr. Oz would bring access to all things NOT United States taking POTN out of the FDA foothold and as you know he is a marketing genius. I just can not tell you what an incredible business man he is.

I could think of no one better than Dr. OZ to join PotNetworks. The man is a class act and would bring instant credibility to the company.

Easily one of the best values in the CBD sector. IF Hagen is correct in his letter that revenue will exceed $25 mil in 2019 and the margins stay where they have are - POTN will be an incredible value. Even with 700 mil shares they are cheap compared to their peers.

The industry as a whole has been crushed. There will be better days. Much better days.

Could you post the drop shipping companies financials.

Catching up on POTN - they had a profit in Q2 correct?
So they are making money.

Revs down but looks like the whole industry saw a pullback in revs so have to think that is an industry thing. Maybe attributable to the FDA stuff. CBD doesn't do a thing for me so maybe the rush to try it is over. POTN would do well think focus on Diamond and let the other stuff go away IMO.

Didnt expect all the fraudsters in and around the company but very pleased to see the company is a reporting company now and got this Q filed.

700 mil shrs outstanding is a lot of shares. They need to partner instead of dilute.

Very disappointed to see the fraudster element in and around the company. I have to eat crow on that one -- I was wrong. I would be for POTN selling out in the 5-6 times area and let shareholders start over.

I believe you are correct, that POTN is far from in trouble. You would have thought with them becoming a fully reporting company some of the market conjecture about their numbers would have gone away.

Looking forward to earnings release. CVSI increased revs by 35+% but saw their profit margins squeezed. Would not be surprised to see the same with POTN.

Think the new push up will be on seeing an industry rollup begin. At that point - POTN should start trading closer to an acquisition value. Id guess closer to 6-7 x forward sales at a minimum. Who knows....but $25-30 mil in annual revs at a break even run is worth more than where we sit.

InvestorsHub Newswire ran an article yesterday that the x Pres of Kellogg has a CBD company about to go on rollup binge. POTN was listed as one of the 3-4 companies as possible targets. Saw the the same story on CVSI's yahoo feed. So probably some truth to it. The industry will rollup soon. Only makes since.... which should be a very good thing for POTN longs. Trading at a fraction of what their competitors are trading at on many valuation models. Ratios.

I have worked my butt off trying to get to talk with someone at the company. Phone, text, email and zero for over a month. Many many attempts.

Smells like fraud to me. We will see.

The valuation of POTN in a sector rollup as the InvestorsHub Newswire alludes to today would be substantially higher than it is today I would guess. I'm seeing valuation in the industry currently around 7-9x future revenues on some of the top tier companies. It would be my guess POTN would be priced much higher than today in a buyout situation.

With POTN becoming a reporting company only adds to the clarity and confidence an acquirer would would have. The fact that a few of the shareholders are bad apples - not sure how that would weigh. Personally dont think it would do anything more than motivate the sellers.

Nice InvestorsHub NewsWire article today on ex-Kellogg President's bet on CBD with HeavenlyRX rolling up the CBD market.

Says it bodes well for PURA KALY POTN & USMJ.

Bodes well ... likely acquisition targets.

A rollup of the CBD industry is likely. Looks like Paul Norman is going to be starting the charge.

Claytrader likes POTN's chart. He nails it.