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Enough with the pathetic Will Meade conspiracy theories about BBIG.
Here is a post from June 4th, but Will was posting about BBIG both before and after this tweet:
https://www.trendsmap.com/twitter/tweet/1400799485693997056
BBIG was stuck in the $3-$4 channel, and his posts did not have the influence that it's claimed to have. This applies to June 4th, yesterday and today.
It seems that some got burned being in other Will Meade mentioned stocks. However, all the conspiracy theories posted here are nothing but manipulation itself, trying to influence investors not to buy into BBIG. This likely cost investors a lot of money this morning and past days, not buying in because of the manipulation on this board.
Qorvo is an awesome partner for ZOM. They are an $11 billion dollar company that is up over 5% AH after reporting this milestone and great earnings.
We have still not seen evidence provided of the alleged scamming activities by the alleged scam artists.
Please show the actual evidence that they are a scam company and evidence that those alleged "puppets" running the company are scam artists.
Since Canb is a publicly traded company, those running it are public figures. Therefore, the information regarding any scamming activities would be public information. However, nothing has been shown to validate this.
That figure is embellished.
Canb is not down 99%
Although its stock performance has been poor, it's still in the middle of the pack in terms of loss.
If you bought Elixinol or CVSI at the 52 week high, you would have lost more than Canb. And doing the simple math, they are not down 99% either.
Elixinol
Today: $0.245
52 week high: $3.90
Performance: -93.7%
CVSI
Today: $0.50
52 week high: $5.36
Performance: -90.7%
Canb
Today: $0.75
52 week high: $7.2
Performance: -89.6%
CBD MD
Today: $0.96
52 week high: $7.24
Performance: -86.7%
CBD Unlimited
Today: $0.08
52 week high: $0.52
Performance: -84.6%
Charlottes Web
Today: $4.55
52 week high: $23.90
Performance: -81.0%
This is a good start.
although the info is provided by someone else on another companies stock board
Now, let's have the analysis of that info which allegedly makes Green Growth Farms and Canb a scam.
Is this person, referred to as a salesperson, still with Green Growth after the acquisition? Does he now work for Canb?
What happened to the charges? Were they found guilty or were they dropped?
Did you know that Canb owns 100% of Green Growth Farms, and this person owns 0%? Don't see this person's name on any of the other filed 8-K's.
And we also have info from yesterday passed on from someone else:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=155141275
So, this is merely some disgruntled guys resignation letter from Novatis, who was probably forced to resign (nice way of being fired).
Please explain how some resignation letter from this guy with no association or authority over Canb, leads to some convoluted path where the mysterious and elusive Redwood now is in full control of Canb, using their scamming powers to turn Canb into a scam? LMAO.
Yes - that was said at a time when the whole industry was rosy.
I agree that Canb has been a bad investment so far, and I appreciate the acknowledgement that other CBD stocks have also been bad investments.
The reality is a 90 or 95% loss happened whether you bought Canb, CVSI, and now Charlotte's Web is close to 90% loss.
I don't regret the paper losses in Canb, because they would be the same with most other Cannabis stocks (including the others that I still have)
However, I still have hope the industry will rise back to prominence. The government is a huge positive indicator, albeit too slow. Only then will we see if Canb remains at the bottom, or rises above the crowd.
Volume has been poor across the sector, just like stock prices. Of course, others think it's only Canb that is down over 90%.
Today's volume was the equivalent of 5.8 million shares pre R/S, so not too bad. However, I agree outside of today and yesterday volume stinks.
CWeb had 235k in volume today, it's lowest point since last summer. Last month you could have gotten shares for $2.75, down almost 90%.
A few weeks ago you could have picked up a share of CVSI for a mere quarter, when a year ago it was $5.84. That works out to a 96% drop within the past year.
I would have jumped ship from all my investments in the cannabis sector, if it were not for two factors:
1) The sector still has tremendous promise
2) Regulations are showing promise and are slowly in the works
Europe is starting to see a resurgence in the CBD industry, thanks to government loosing of restrictions.
Market sentiment was great last week because of the stimulus and flattening of the curve. However, my expectation is that the S&P will get cut in half in the next few months. Investors don't realize what is going to happen when Q1 and Q2 earnings come out for companies that had to scale back operations, close, or lost production in the pandemic.
Now if the market tanks into a deep recession, investors will still want somewhere to invest. I am sure gold will be popular, and I have seen biotech weather that storm. If enforcement discretion and any indication of cbd regulations transpires, I think we could see significant interest and investment back into the hemp industry. Just my opinion about the general market tanking, but I do base it on other opinions I read in the financial industry.
Agree - This is very relevant for Canb
Since Canb’s annual was filed, there have been many false claims about Canb circulating out there.
Any suggestions made that the market cap is sky high is not valid. Based on the market cap of $3.3 million and revenues of $2.3 million, the price to sales ratio is only 1.4. For a speculative company, 10 to 20 was the range for many MJ companies at their highs, and CVSI was over 12 in 2018.
The 2020 forward price/sales should be higher since the first revenue distribution for NY Hemp Depot was set for Q1 2020. Arguments can be made for the concern with net losses, but many investors are short term and don’t consider that a huge factor for a speculative company.
Any claim that preferred shares are an endless and insiders don’t care about the price because they are selling them is bogus. Per the 2019 10-k, Canb has only issues 20 preferred shares to the executives most of which are vesting until 2022 under their documented employment agreements. This is easily refuted given the fact that you can’t sell what you don’t own yet. Although they could have, Canb did not pay dividends to the preferred shares Canb has two years of fully audited filings where they are transparent about all dilution. .
Predictions that dilution will take Canb to subpenny is totally unrealistic and demonstrate a lack of understanding with company valuation. While Canb’s cash is low, they have significant positive indicators:
Since I shouldn't just expect everyone to take my word on it, here are actual and real details:
working capital: $2.9 million
debt to equity ratio of .09 or 9% (Assets = $6.3 million and Liabilities = $565k)
Current ratio is 6.7:1 (Current Assets: $ 3,386,815, Current Liabilities: $ 505,668)
Quick ratio is 5.15:1 (Current Assets: $ 3,386,815, Current Liabilities: $ 505,668, Current Inventory: $ 784,497)
Any speculation that Canb is somehow run by Redwood amounts to fake news, with no proof that "Redwood" somehow has control over Canb. Interesting that the fully audited financials for the past two years have no mention of Redwood. And SHI Farms is a non-managing partner in the NY Hemp Depot. The best part of the deal is always left out, that SHI helped establish the partnership between Canb and Mile High Labs.
Claims that the ceo, insiders, board members, current transfer agent, and everyone else working at Canb are scam artists it totally false and has never been substantiated with any actual evidence, just mere speculation.
SHI Farms looks pretty viable to me, and not a “scam”:
https://www.linkedin.com/company/shifarms
https://www.facebook.com/pg/ShiFarms/about/?ref=page_internal
https://www.instagram.com/shifarms/?hl=en
Canb's partnership with Mile High Labs seems pretty viable as well, and I also wish they were public:
https://milehighlabs.com/
https://www.facebook.com/milehighlabs/
The price action and volume are still disappointing across the entire cannabis sector. No argument can be made against the fact that every company in the sector is still down 80-95%, Canb included. As it stands, excuses can’t be made that Canb’s decline and poor share price are due to fundamentals. That won’t be proved out until the sector starts its rebound. However, stating that an industry (still predicted to go over $20 billion in revenue) is dead is missing the big picture, and lacking an understanding of the effect (or lack thereof) with regulations.
So, how is what Canb does different than other companies in terms of providing stock compensation?
CVSI recorded $20 million in recognized & unrecognized stock compensation last year, while recording a net loss of $16 million.
$10 million of the stock compensation was given to their former CEO in 2019, even though two years earlier he resigned and "settled" with the SEC on charges of defrauding and scamming investors while the CEO of CVSI.
Per their 10-k
"The Company recognized stock-based compensation expense of $15.1 million and $2.9 million for the years ended December 31, 2019 and 2018, respectively. During the year ended December 31, 2019, the Company's former President and Chief Executive Officer, Mona Jr., and the Company entered into a Settlement Agreement (the “Settlement Agreement”), pursuant to which the Company agreed that Mona Jr.’s resignation from the Company on January 22, 2019 was for Good Reason (as defined in Mona Jr.’s Employment Agreement) and agreed to extend the deadline for Mona Jr.’s exercise of his stock options for a period of five years. In exchange, Mona Jr. agreed that notwithstanding the terms of his Employment Agreement providing for acceleration of vesting of all stock options and restricted stock units (RSU's) upon a Good Reason resignation, certain of his unvested stock options would not immediately vest, but rather continue to vest if, and only if, certain Company milestones are achieved related to the Company’s drug development efforts. These stock options were issued in July 2016 (6,000,000 options) and March 2017 (5,000,000 options). The Company and Mona Jr. also agreed to mutually release all claims arising out of and related to Mona Jr.’s resignation and separation from the Company. As a result of the Settlement Agreement, the Company recorded stock-based compensation expense related to the accelerated vesting of the RSU's of $5.1 million and the modification of certain stock options of $2.7 million during the year ended December 31, 2019. In addition, on December 31, 2019, the Company's former Chief Operating Officer and co-founder ("Mona III") resigned from the Company. The Company recorded stock-based compensation expense related to the accelerated vesting of Mona III's unvested outstanding options of $1.7 million during the year ended December 31, 2019 with no assumed forfeiture rate.
As of December 31, 2019, total unrecognized compensation cost related to non-vested stock-based compensation arrangements was $4.8 million which is expected to be recognized over a weighted-average period of 2.1 years."
So where is the proof for the claims this company was "run by scam artists"?
All I came across was the statement made in their full and independent 10-K filing:
“Our current directors and executive officers have not been involved in any legal proceedings as described in Item 401(f) of Regulation S-K in the past ten years.”
For example, the COO served our Country for 29 years in the FBI and put his life on the line fighting Al-Qaeda and terrorism:
"Phil Scala, Interim Chief Operating Officer, 40 year career offers unique expertise in delivering the information needed to make informed decisions, whether in times of crisis or in the course of simply running our business; is highlighted by his 29 years of service with the FBI. Throughout his 29-year career with the FBI, he worked, supervised and lead investigations on nearly every type of federal crime, including securities fraud, white collar crime, money laundering, tax violations, narcotics, racketeering, homicide, violent crime, kidnappings, and public corruptions. Mr. Scala has been the recipient of numerous commendations and awards for outstanding service, notably the FBI Shield of Bravery, as a group commendation, as the SWAT team leader of the Al-Qaeda Bomb Factory Raid, on June 3, 1993."
I could not come across any records of scam artist activities for Phil Scala, and the above bio seems like he is a pretty good person. Same goes for the others, such as a distinguished Senator from Florida.
Please share what you found for their scamming activities.
Nikon Corporation has an investment partnership with Healios K.K. that was expanded last Summer. In turn, Nikon also has a manufacturing partnership with Athersys
https://www.nikon.com/news/2019/0710_01.htm
Nikon is a $3.5 billion dollar corporation that has made a significant investment and believes in Multistem therapy.
I enjoyed reading your poetic optimism on the state of affairs of the CBD industry and VATE.
I can't match your level of detail, however I would like to add this point:
A projected $20 billion + industry will not end up "vanished like a fart in the wind" (Shawshank Redemption)
It just lost temporarily traction.
no its not - the reason for higher gross margin was was already proven after Q3. It was was cited with specific company statements as to the reason. It only required really basic calculations.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=152442306
It's now time for a genuine analysis of the annual report:
I certainly could have spent two minutes glancing at the annual report and them jump to conclusions, but I opted to read the entire lengthy filing and here are the highlights:
The following is pretty standard auditor language and take note these are independently full audits of 2018 and 2019 financials.
“the financial statements present fairly, in all material respects, the financial position of the company as of December 2019 and 2018, in conformity with accounting principles generally accepted in the U.S.A.”
“we are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and PCAOB.”
“We conducted our audits in accordance with the standards of the PCAOB. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.”
“Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.”
The above absolutely validates that Canb is not a scam or fraudulent company. What company that is trying to defraud or scam investors commits to completing full independent audits for the past two years?
Growth
"Nu Wellness its independent pharmacy brand targets the over three-thousand independent retail drug stores nationally with its first product schedule for roll-out in the 1st quarter 2020.
The Seven Chakras brand is targeted toward health clubs, spas, and beauty lines and is expecting a major launch in 2nd quarter 2020 to include a full line of related topical products both
with and without CBD."
Also, highlighting the following to address past claims of "criminal activity" by the board members:
From the filing:
Director or Officer Involvement in Certain Legal Proceedings
“Our current directors and executive officers have not been involved in any legal proceedings as described in Item 401(f) of Regulation S-K in the past ten years.”
These are facts that fully refute any claims that the board and executives with Canb are “convicted scam artists”.
Financial highlights from 2018 to 2019:
Revenue:
2018: $668k
2019: $2.3 million
Increase: 345%
Profit:
2018: $263k
2019: $1.7 million
Increase: 646%
Gross Margins:
2018: 39%
2019: 74%
OpEx:
2018: $3.7 million
2019: $6.3 million
Increase: 70%
OpLoss:
2018: $3.4 million
2019: $4.6 million
Increase: 34%
Assets
2018: $3.7 million
2019: $6.9 million
Increase: 86%
Liabilities
2018: $205k
2019: $565k
Increase: 176%
Cash:
2018: $808k
2019: $47k
Decrease: 94%
Working capital
2018: $939k
2019: $2.9 million
Increase: 209%
Stockholder Equity:
2018: $3.5 million
2019: $6.4 million
Increase: 83%
Certainly there are concerning items, which is not uncommon for a speculative young company. These have also existed on previous filings.
The high accounts receivable of $1.2 million is essentially cash that will be paid to Canb, however it mostly comprises of medical billing that is notoriously slow to pay. That contributes greatly to the cash flow issue. And the statement that they would need to raise more capital via the sales of share is nothing new for any company trying to reach profitability. The private placements are technically also the sale of shares, just off the open market. Also very important, liabilities are only a half million, which is a differentiator compared to other companies that often have $10-$20 million in liabilities.
The late payments on accounts payable are of course of concern, however they are not defaults of a loan, and it’s not indicated as to who the “certain vendors” are. The bad debt expense is most likely due to Duramed being a health care provide, with the majority of revenue coming from insurance carriers. It’s common across the health care industry for insurance carriers to cut down invoices for various reasons, many of which are not fair to the provider. You can only dispute it to a certain degree, before crossing the line and losing.
Overall, it’s great to see revenue growth of several hundred percent in sector that performed poorly in 2019. Given that Canb is only trading 1.5x revenue, there is plenty of room to go up for a speculative company. It's nice that they do more than retail, since we are seeing the struggles of the companies that are "retail only"
Private placement investors don't have an expectation for an immediate ROI. And how could those investors (or any of us for that matter) have predicted the 80-90% downturn in the sector? So, the argument is misleading because it totally ignores the overall performance of the sector.
Those who understand private investing know that expectation is for the investment to support immediate growth of the business, so the share price can appreciate later.
This is why they invested, per the recent PR:
"2019 was a growth-oriented year for Canbiola as we invested heavily back into the Company," said CEO, Marco Alfonsi. "I am very pleased with the significant progress we’ve made over the past year. Our year-over-year top-line growth was significant"
Although it has not been filed, Alfonsi knows what the 2019 revenues are. Why would he say Year over Year growth was significant if it wasn't?
Another tell for the upcoming filings:
"directing more resources to our Duramed Medical Device division, which has been far outperforming projections and poised for a break out year in 2020. These efforts will allow Canbiola to have strong organic growth, achieve profitability, and increase cash flow."
We will know soon, and the reverse split will be long forgotten. New investors coming in won't even care.
Canb went up 50% last week on more than double volume (others in the CBD space also did quite well) on news regarding MJ sales and legalization. This definitly demonstrates that what is soon to be a $20+ billion industry is certainly not dead.
Investors flock to triple digit growth, and that's what we are going to have with Canb.
Although we have our disagreements about the direction of Canb, it's easy for us to agree on Sbarro.
Does your friend also happen say that Olive Garden is his favorite Italian Restaurant? (where for some reason it's always crowded and you are required to wait at least 45 minutes for a table, only to then be served mediocre Italian food)
You won't get any examples because there was no actual analysis done.
It's more like: Wow, look at Tilray they are up 150% in the past two days! They must be the greatest company!
When the reality is they are at the same price as they were when they hit a 52 week low two weeks ago.
So, back to the unanswered question from last week:
In regards to Pure CBD, you stated:
"Seen prices that are actually below what it costs to make it"
Show us the analysis that you did. What source are you using to formulate your number for the cultivation and processing cost?
Where specifically have you seen prices below those costs?
If you did the analysis, it should be no problem to show your work. You did do the stated research correct?
Also, you stated that GenCanna was proof that "everyone" is closing their doors.
That was false and misleading, as the only example every brought up was GenCanna.
The article clearly disproves that because GenCanna is doing a Chapter 11 BK. Did you know that type of bankruptcy is not "closing the doors" but a re-org of debt and finances? A Chapter 7 BK is the type that closed the doors?
Statement from the article:
"the bankruptcy process gives us the ability to move forward in a way that allows us to best continue operations and serve customers as we work through our reorganization"
So, not closing the doors.
Short list of the many companies that declared Chapter 11 bankruptcy and have not "closed the doors":
Apple (they make and sell phones and electronics)
GM
Ally Bank
Chrysler
Marvel Entertainment
Six Flags
Texaco
Sbarro (they sell overpriced crappy pizza at turnpike rest stops and airports)
Winn-Dixie
Nine West
Rockport
So, where are the examples from the due diligence you have done for the other companies "closing their doors?"
Show us the analysis that you did. What source are you using to formulate your number for the cultivation and processing cost? Where specifically have you seen prices below those costs?
Note: Alibaba was cited before, however they are not a legitimate source. They only sell foreign CBD, primarily impure Chinese CBD. So, of course that would be below the cost of American pure CBD. But would you consume it?
Not quite. You do recognize that Tilray is only up 1% since March 10th?
Aurora is still down 7.6% since March 10th
Canopy is still down 1% since March 6th
Canb is down 50% since the R/S. But here is the kicker: Canb rose today just like the rest of the sector. Today is clear proof that there is interest in Canb. Up 26% on twice the normal volume.
Sure, it was just one day and others rose higher. But this totally proves false the theories that there is no interest in pure CBD, or Canb is a dead company (Plus there is never any evidence shown to back it up, so that also proves those theories wrong).
I have said it before, and today was validation. This current rise may fizzle out for the sector, but it clearly shows there is interest in the CBD companies when many of these companies rose 20-40%. Legislation and FDA approval will be the true catalyst.
The 10-K will come out soon, and Canb was on pace for at least $2.4 million in revs for 2019. Currently, Canb only trading at 1.5x price to sales. Speculative, high growth stocks will trade at 25x or 30x P/S or higher which equates to $21 to $42 per share.
They are moving up and show share holders value?
Aurora traded as follows:
Today: $0.746
Price on 1/1/20: $2.25 (down 67% since New Years)
Price a year ago: $9.37 (down 92% in the past year)
Losing 92% in value is considered moving up and providing shareholder value?
To be fair, I will show Canb's trading:
Today: $1.00
Price on 1/1/20: $3.90 (down 74% since New Years)
Price a year ago: $14.4 (down 93% in the past year)
So, the investors in Aurora are better off than Canb? if you made the exact same investment in ACB and Canb, you would have only lost 1% less over a year with ACB. Are investors of ACB somehow happier because they have better advertising or websites?
That is a true comparison. It's comparing investment value.
Canopy was a little better:
Today: $13.98
Price on 1/1/20: $21.56 (down 35% since New Years)
Price a year ago: $44.59 (down 69% in the past year)
So, is losing 69% of your investment also moving up and providing shareholder value? Are investors happier because they lost less of their investment, but have better advertising?
You do know that this is making an apples to oranges comparison?
The idiom comparing apples and oranges means that one is trying to draw similarities between two things that are not similar.
Aurora has over 1 billion shares outstanding (not sure of float, but probably at least a half billion). It also has an "Unlimited" and uncapped authorized shares. Canopy has 350 million shares outstanding.
So, pretty typical they are trading millions of shares.
Canb has 1.2 million shares as float. If you track stock performance, it's not common and very rare for a stock with 1.2 million shares to trade "millions" of shares. That is 1x, 2x or maybe 3x it's float in a single day.
Now, here are the apples to apples types of comparisons that Myself and others make:
1) We compare the performance of Canb versus the others, over a given time period. particularly, to refute claims that try and give the impression that Canb is doing much worse than the others.
To do so, you take the price difference on a stock between an end date (usually the current date) and an starting date. Then you divide the price on the starting date with the price difference. That gives you the percentage a stock price has gained or lost. Then you compare that against another stock using the same calculations.
I use those calculations to show that the other stocks have also fallen over 90%, just like Canb. Figures such as float, authorized shares, and shares traded on a particular day are not factors in this calculation. What matters is that a 90% loss for one stock is the same as a 90% loss on another stock.
2) We compare revenue growth, which is also apples to apples. Revenue growth is the percentage increase for a company that occurs over a time period. You take revenue for a more current time period, and subtract it from a previous time period. Then you divide that number by the revenue for that previous time period.
For example, Canb has $1.76 million in revenue for the first three quarters of 2019. For the first three quarters of 2018, they had revenue of $387k. Doing the calculations, that is revenue growth of over 350%. A company such as CVSI had revenue in 2018 of $48 million, and in 2019 of $54 million. Doing that calculation, CVSI has revenue growth of 17%.
Would you rather invest in a company with 17% revenue growth (CVSI), or the potential of a company with 350% revenue growth? Which will run further when several hundred percent revenue growth continues? Investors love revenue growth.
It's apples to apples. Investors care most about their investment growing, not how many shares a company trades on a given day.
3) Comparisons are made with the potential for FDA legal pure CBD (which is exclusively what Canb produces), or a company that mostly produces FDA gray area broad or full spectrum? However, Canopy did just start a line of Pure CBD products in the U.S. I wonder why a multi billion dollar company would do that if nobody wanted pure CBD?
Would you rather invest in a company that sold a legal product, versus one that is somewhat legal?
Q1 revenues soon after that with the first of the Hemp Depot revenues.
Not surprised there is zero validation or evidence provided for the "scam artist" and "creative revenue" reporting false claims about Canb.
The market dropped an unprecedented near 40% in 2 weeks, with the three worst point drops trading days in U.S. history. Also, the CBD industry has seen all stocks lose an incredible 80-90+% value over the past year due to poor sentiment and FDA fears. Still, excuses being made that Canb dropped entirely on its own merit and fundamentals, with those extreme outside factors having no influence. Those who have experience and the understanding of the market in its entirety understand that is totally flawed logic.
Incorrect, if you look at the EOD trades it was not a paint job.
The final 13% of volume was near the close at the opening price of 1.00
It was mentioned that "SAMS revenue is creative accounting at its worst"
Please share with investors and potential investors the details that you found. Generalizations won't really work, if this is easy to see than it should be easy to provide the actual evidence that was found.
Please share with us the evidence that you found on the board of directors, management of the company and advisors which show that they are "pennyscam artists".
If this is true, I would think that investors or potential investors have a right to know the details?
The only evidence I found was a couple of 13 year old FINRA violations for not properly following regulations, certainly not acts of being a scam artist. Can't seem to find a shred of evidence on any of the others.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=152597415
Merrill Lynch, JP Morgan and Raymond James were also charged with the same violations for not properly following regulations.
Exactly. "The latest excuses are false claims that dilution and the R/S are responsible for making Canb a worst investment than the others."
There is nothing in that statement saying that dilution and the r/s have NOT contributed to the decline of this stocks value.
Given the sector's current state, add on top of it the enormously unprecedented overall market crash, there is no way to gauge the effect of what any dilution, reverse split, or so called "management mistakes" have had on Canb. I demonstrate that every company has done bad, not just Canb. Some not quite as bad, but most to the tune of 90% or greater.
Can anyone logically and reasonably say "Canb would only be down 30% or 45% if it were not for those things"? Or, would Canb be the only company in the cannabis sector to actually be up if it were not for those things?
You stated "The cbd sector’s decline is used as a catch-all excuse on a daily basis". That is right, it's an excuse for every company in the sector because it should be. You have a company like KG that is growing and profitable with dilution but no debt and no R/S. Should that be down 85%, sitting at a market cap of $20 million down from $130 million within the past year? Keep in mind, they are not faring much better than Canb.
If the CBD sector rebounds, and with two additional quarters of filings for Canb, that will be the time to tell what investors think of Canb. If Canb were to falter during and after the rebound, then that is the time to trash it. Until then, there is no way to validate those are the reasons...
Not kidding. Show us the analysis that you did. What source are you using to formulate your number for the cultivation and processing cost? Where specifically have you seen prices below those costs?
If you did the analysis, it should be no problem to show your work. You did do the stated research correct?
BTW - GenCanna is doing a Chapter 11 BK. Did you know that type of bankruptcy is not "closing the doors" but a re-org of debt and finances? A Chapter 7 BK is the type that closed the doors?
Statement from the article:
"the bankruptcy process gives us the ability to move forward in a way that allows us to best continue operations and serve customers as we work through our reorganization"
So, not closing the doors.
Short list of the many companies that declared Chapter 11 bankruptcy:
Apple (they make and sell phones and electronics)
GM
Ally Bank
Chrysler
Marvel Entertainment
Six Flags
Texaco
Sbarro (they sell overpriced crappy pizza at turnpike rest stops and airports)
Winn-Dixie
Nine West
Rockport
Seriously, how do you misconstrue the following statements I made:
"that 88% decline [in market cap for Canb] did include increasing the number of shares outstanding and a R/S"
"Canb has issued a good amount of stock for numerous acquisitions and assets, and survived a R/S, yet their decline in market cap is less than CVSI over the same year?"
and interpret it to state that I said dilution and the r/s have NOT contributed to the decline of this stocks value?
It could not be any clearer that I stated Canb had dilution and a R/S, and their market cap value did not decline as much as CVSI over the same time period.
Show us the analysis that you did. What source are you using to formulate your number for the cultivation and processing cost? Where specifically have you seen prices below those costs?
"Seen prices that are actually below what it costs to make it"
Note: Alibaba was cited before, however they are not a legitimate source. They only sell foreign CBD, primarily impure Chinese CBD. So, of course that would be below the cost of American pure CBD. But would you consume it?
Agreed, it certainly "differentiates" Canb. The latest excuses are false claims that dilution and the R/S are responsible for making Canb a worst investment than the others. The numbers prove that is not actually the case.
Canb unfortunately went from $27 million to $3 million in the past year as it suffered with the rest of the indistry. However, that 88% decline did include increasing the number of shares outstanding and a R/S.
When you compare market cap performance with others, CVSI had a market cap of $572 million at the end of Q1 2019, and dropped to $37 million for a 93.5% decline.
Isn't it interesting that Canb has issued a good amount of stock for numerous acquisitions and assets, and survived a R/S, yet their decline in market cap is less than CVSI over the same year?
With over $2 million in revenue, the $3 million market cap of Canb is way undervalued.
How about providing some details on what you found?
"big and smaller players closing their doors on the CBD thing or moving to other products all together."
Who are these big and small players?
"Went to many stores that carry many different brands and many are gathering dust and getting closer to expiry dates"
Which stores did you go to?
"99% CBD pure isolate game is all but over"
Show us information on what leads you to that conclusion.
These questions have been asked before, however never get an answer. Therefore, they are just opinions.
Did you know that Canb is diversified? It's misleading to state they are a one dimensional company only trying to sell pure CBD in a retail store.
“Pure Health Products LLC division is aggressively expanding its manufacturing capabilities and growing its private label service division”
Analysis: Selling private label is lucrative since these deals typically are in bulk and have commitments attached. Plus. no need for significant advertising costs.
“The medical device division, Duramed Inc has been experiencing record growth and will be expanding its product offerings.” and “directing more resources to our Duramed Medical Device division, which has been far outperforming projections and poised for a break out year in 2020."
Analysis: The revenue for these devices comes mostly from payments from insurance carriers, after these are prescribed to the patients.
"Can B Corp owns and operates a manufacturing facility under Pure Health Products in Lacey, Washington where all CBD based products are blended and packaged. Can B Corp owns and operates Duramed Inc, which sells medical supplies and devices. Can B Corp owns and operates NY Hemp Depot and Green Grow Farms, which are licensed to grow and cultivate Hemp in the State of New York"
Analysis: Anyone can harp all they want about why they are not in every convenience store, or where the vending machines are located. Canb's diversification and full vertical integration within the CBD supply chain is what really matters.
"This quality will allow us to continue to grow our sales channels through medical professionals, but we will now also be applying our resources to develop robust sales channels for traditional consumers as well”
Analysis: Canb recently acknowledged they need to apply more resources in their sales channels to traditional consumers. I like the fact that they focused on vertical integration first. Looking at a company like CVSI, all they have is traditional sales channel. And that's it (unless you count a faltering pharmaceutical division).
"Q1 2019 revenues increased quarter over quarter from the prior year by 741% to $517,160 with a gross profit margin of 49%
Q2 revenues increased quarter over quarter from the prior year by 311% to $633,579 with a gross profit margin of 52.8%.
Q3 2019 revenues increased quarter over quarter from the prior year by 277% to $615,422 with a gross margin of 77%."
Analysis: What is the first and primary thing an investor looks at when evaluating a potential investment? The answer is current REVENUE and REVENUE GROWTH. The experienced investor will understand that profit versus loss matters little in a speculative company with high growth. Many, many companies have seen significant share price increases based on revenue and revenue growth alone.
So, the answer is that there is plenty to keep Canb in business with continued revenue growth.
This is taken completely out of context.
Let me provide a better understanding of a sector and how it works. So, Canb is now in multiple sectors in the cannabis industry due to their vertical integration. Those sectors are hemp products and retail, cultivation (Hemp Depot), biotechnology (Duramed products include the use of CBD) and agricultural technology (Hemp Depot). There are additional sectors, such as consumption devices, real estate and marijuana products.
The statement you made was:
"one is trying to substantiate how independent of a company CANB is"
My first thought is: Huh? An independent company is defined as one that is not controlled by another entity. Another words, it’s a parent company and not a subsidiary. That is already a known fact that Canb is independent, so nothing to really substantiate.
What we do, however, is “differentiate” (which is the correct term, not substantiate) the fact that Canb focuses entirely on pure CBD. In addition, they “differentiate” by having subsidiaries such as Duramed and Hemp Depot that go beyond retail or private labeling. An example, is how CVSI only has retail (putting the pharmaceutical aside). I can’t argue against the fact that CVSI does retail really well. But what I can point out is that CVSI is only retail, and although they are leaders there is also ton of competition. I also point out that Canb doesn’t do retail very well (they even admitted that is now an area of focus), but their vertical integration makes them multi dimensional.
You stated:
“Oh we’re doing bad but it’s ok because look how other companies are doing as well”
I never said it’s ok that Canb is doing bad because the other companies are doing bad, again something else which has been taken out of context. My point is directed towards claims saying things like “Ha Ha, look how much the stock price of Canb fell, I warned everyone it was a bad company!.” Or, “Ha Ha. Lest we forget a year ago this was trading at 9 cents. Look how they ran this company into the ground”
And here is the all time best “hey everyone, let’s really try and trash and make Canb look bad” statement:
“Figured If CANB was legit then I’d keep my eye on the stock and jump back in after the decline to gain back some traction- Which it did not as you know.” “CANB is a sinking ship”.
All of these posts completely ignore the rest of the sector, pretending like its doing fine. There were even posts mocking how Canb was down on the day of worst decline in 30 years of the stock market. Again, pretending like that didn’t happen and Canb is entirely responsible for that decline.
An objective person, not one who holds disdain and bitterness for Canb, would see the obvious performance of all the companies in the sector over the past year+ have followed nearly the same performance trajectory. That is exactly what I point out, not making a direct company versus company comparison. I have clearly indicated that its an analysis of the stock performance. I am taking a sampling of the more well known stocks in the sector, however the reality is I can choose any stock in the sector.
The references to Canb being down 90% does not provide proof that it’s a bad company when every other stock is down 90%. Some may think it does because of being convinced Canb is a bad company. However, the impartial person cannot logically make that determination until the sector rebounds. If the sector rebounds, our expectation is that Canb will not have a problem rebounding with it. It’s also our expectation that Canb will outperform the others due to its differentiation. THAT is the comparison that is being made.
You also state:
“How they are the first of the market in terms of the “only us traded CBD isolate stock”
Are you implying that this differentiation puts Canb in their own sector, and therefore their performance cannot be compared to others?
“comparing other Canadian or US CBD stocks to CANB while he and others declares on other days that CANB is above and beyond the rest and there no comparison.”
Another example where words are taken totally out of context. Actually, I didn’t quite understand the point that was trying to make because the wording is confusing. Again, those comparisons are with stock performance of others in the sector.
The truth is that there is a strong case that has been made that the direction the government & FDA will be pure CBD first. It has also been clarified that this does not mean others won’t ever be approved, just that pure CBD will be first. That puts Canb in position to be a potential frontrunner if that is how things play out with the bill, regs and enforcement discretion. Nothing is ever guaranteed, however I believe the indicators are definitely there. I’ll put my money in the company that has a firm foothold in the pure cbd supply chain.
In terms of the "1000's of others making CBD isolate products" you referenced Alibaba as the example.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=154123514
"Alibaba has 99% pure CBD, as much as you want to buy"
The CBD isolate you are buying for "cheap" on Alibaba is from China. 0% of what they sell is pure CBD from the U.S.
I would rather not take anything than buying from foreign countries like China to save a buck.
Disclaimer on Alibaba website when you try and buy Pure CBD:
"There are 7,391 suppliers who sells cbd isolate on Alibaba.com, mainly located in Asia. The top countries of suppliers are Austria, China, and Thailand, from which the percentage of cbd isolate supply is 1%, 52%, and 3% respectively."
https://www.alibaba.com/product-detail/Hot-Selling-99-99-Hemp-Extract_62097876169.html?spm=a2700.7724857.normalList.58.1ce84427SiAqOr
Supplier:
Guangzhou Daieme Cosmetic Company
Place of Origin: China
https://www.alibaba.com/product-detail/Large-Stock-Supply-CBD-Isolate-99_60774996303.html?spm=a2700.7724857.normalList.69.1ce84427SiAqOr
Place of Origin:
Yunnan, China
I will buy my CBD isolate from Canb, from Hemp grown in New York or Colorado, processed in Colorado, and manufactured into finished goods in the state of Washington.
And another reference to the thousands of pure CBD merchants on Alibaba:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=154153896
"It is so plentiful that even Alibaba has over 5,000 listings and anyone can get it"
True, there are thousands of links to online Chinese merchants selling dirt cheap CBD isolate that is everywhere.
https://www.alibaba.com/product-detail/Large-Stock-Supply-CBD-Isolate-99_60774996303.html?spm=a2700.7724857.normalList.69.1ce84427SiAqOr
Place of Origin:Shaanxi, China
Good luck purchasing the impure crap from China for cheap. It's all made in the heart of Covid -19 virus ground zero province of China.
Question: If it's entirely Canb's fault they are down over 90%, then why is every other stock in the sector also down over 90%? This question has been posed many times, but no explanation has been provided.
Is it just a coincidence the others are also down 90+%?
Here is today's scorecard sampling:
Elixinol at 52 week low and down 96.2% ($4.25 to $0.16)
CVSI at 52 week low and down 92.1% ($6.59 to $0.52)
CBD MD at 52 week low and down 90.7% ($7.24 to $0.718)
CBD Unlimited near 52 week low and down 91.0% ($.745 to $.067)
Charlotte's Web near 52 week low and down 85.2% ($25.25 to $3.78)
Tilray hit a new 52 week low and down 92.1% ($75.55 to $5.95)
Aurora hit a 52 week low and down 93.2% ($10.32 to $0.70)
Charlotte's Web is technically just under 90%, but I included it since they are considered the sector leader.
Note: Canb was up 16% today on the worst day for the stock market in over 30 years. All the stocks above were over 10% losses, with some upwards of 20% today.
It's easy to point out the fact that VATE is just above a Penny, and has dropped significantly over both the short and long term.
The inexperience investor will seemingly think it must be something fundamentally wrong with Vate and they are a bad company. Which leads to mistakenly assuming that Vate must be the one responsible for the performance.
However, that amateur investor won't have the understanding that Vate is part of the much larger cannabis sector where sentiment has a huge significant effect.
So, let's have a comparison scorecard between Vate and other CBD Bev stocks:
VATE
Price Today: $.0102
Price on 1/1/20: $.0165 (down 38%)
52 week High: $.0579 (down 82%)
Sure Vate is down, but others are worse off.
NBEV
Price Today: $1.44
Price on 1/1/20: $1.83 (down 21%)
52 week High: $6.69 (down 78%)
PURA
Price Today: $.0214
Price on 1/1/20: $.04 (down 46%)
52 week High: $.04 (down 78%)
HIPH
Price Today: $.0018
Price on 1/1/20: $.0042 (down 57%)
52 week High: $.0521 (down 96%) Ouch!
Alkaline Water
Price Today: $.068
Price on 1/1/20: $1.28 (down 47%)
52 week High: $3.19 (down 79%)
These all seem pretty similar declines?
Also, that same newbie investor will tend to also cite where Vate is down 18% today, but disregard the entire stock market which was down over 10% today, which is totally unprecedented.
So, it's clear to see with a little sector analysis that the whole industry is not faring well. Vate can issue PR's until they are blue in the face. Reality is, the needle will only move short term. The bill and FDA assurance of legality for CBD beverages is the roadblock that has to be removed.
Daily reminder that the entire sector is down 90+%, not just Canb.
Here is today's scorecard sampling:
Elixinol at 52 week low and down 95.3% ($4.25 to $0.20)
CVSI at 52 week low and down 90.9% ($6.59 to $0.60)
CBD MD near 52 week low and down 88.7% ($7.24 to $0.73)
CBD Unlimited near 52 week low and down 90.0% ($.745 to $.075)
Charlotte's Web near 52 week low and down 82.6% ($25.25 to $4.39)
Tilray hit a new 52 week low and down 90.6% ($75.55 to $7.09)
Aurora hit a 52 week low and down 91.7% ($10.32 to $0.86)
Excuses being made that Canb's 90% drop is due to fundamentals, but the other companies listed are better because they have a higher market cap, larger advertising budget, or haven't done a reverse split.
If you invested in Canb and have a loss of 90%, is that any better than a 90% loss in CVSI? Isn't 90% the same as 90%?
Excuses also made that Canb lost $57 million in market cap. Reality is that CVSI lost $540 million in market cap. Charlotte's Web went from a $2.8 billion dollar company to a $470 million company, or a loss of over $2.3 billion. Yes, that is billions in market cap that they lost. How is that better?
Now the claims are being made that the other companies are better just because they have a higher market cap?
So, if you invest $1,000 in CVSI at a 600 million market cap, and it drops 90%, how is that better than investing $1,000 in a company with a $5 million cap that also drops 90%? Wouldn't your losses still be 90% either way?
Also, claims always being made that other products have a great retail presence, so that automatically makes them better... Those who have done DD will understand that CVSI is retail only, with a fledgling pharmaceutical division that is burning massive cash:
This is CVSI's own description:
"The Company has two operating segments; consumer products and specialty pharmaceutical. The consumer products segment develops, manufactures and markets products based on hemp-based Cannabidiol ("CBD"), under the name PlusCBD™ in a variety of market sectors including nutraceutical, beauty care and specialty foods. The specialty pharmaceutical segment is developing drug candidates which use CBD as a primary active ingredient."
What that reveals from DD, is they are fully dependent upon retail for all current revenue and growth. They even increased retail distribution by adding 20% more locations, and still declined 25% in revenue from the last quarter.
My point is not to discredit CVSI, they still appear to be a good company who is going through growing pains and maturing. However, they clearly mentioned in the last earnings report that retail has been tough due to competition.
The other companies are single dimensional as well.
From an investor point of view, would we want to invest in 30% revenue growth with another company, or Canb's 500% revenue growth and multiple subsidiaries that include full vertical integration in cannabis?
There is still no explanation as to why Canb is being considered a bad company, while the rest of the companies in the cannabis sector that are also near or over 90% are flat out ignored?
Could it be only a mere coincidence that all of these companies are down just as much as Canb over the last year, including the last several months?
Will the excuses still be made that Canb is not a part of the sector, or Canb is not a company, or Canb's revenue is fake and that is why it's down 90%, irregardless of the rest of the sector's performance?
CVSI at 52 week low and down 90.9% ($4.25 to $0.21)
Elixinol at 52 week low and down 95.1% ($6.59 to $0.60)
CBD MD near 52 week low and down 88.7% ($7.24 to $0.82)
CBD Unlimited near 52 week low and down 90.0% ($.745 to $.075)
Charlotte's Web near 52 week low and down 82.2% ($25.25 to $4.49)
Tilray near 52 week low and down 90% ($75.55 to $7.84)
Aurora near 52 week low and down 90.5% ($10.32 to $0.98)
Since Canb will continue to be called out for it's significant drop, I will make sure there are daily reminders the entire sector is equally in the same boat.
So, if the theory is that Canb dropped 50% the past week because they sell overpriced isolate, then what is the theory for these companies?
CVSI opened at $1.28 on January 21st, a little over a month ago,
Today it's at .61, which is a drop of 52%.
Elixinol opened at $.85 on January 21st, and today it's at .21 which is a drop of 75%
Yes - that is not quite 50%, it's a 75% drop!!!!
Charlottes Web was $8.80 on January 22nd. Today it's at $4.60 which is a drop of 48%.
Today was the largest point drop in the hundred year history of the market as EVERY stock sold off. THey must also sell basic overpriced isolate.
Please explain the reason why ALL other stocks in the cannabis sector are also down 90%, or a significant amount close to 90%? They must all be selling basic overpriced isolate also.
Makes sense......