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To absolutely no one’s surprise I agree with this post. The valuation of this company as expressed in the share price is absurdity low, and that sucks for sure. However, I don’t believe the executives are maliciously harvesting investment dollars for personal enrichment as some have suggested. Maybe I’m wrong. We’ll find out in the coming years. I’m way underwater and Im pissed about that but I’m glass half full guy with this company.
Half full = “Positive operating cash flow, $22m in cash, over $11mil backlog”
Half empty = “ The "raise” [was for] payroll surplus for the Exec board just so they can ride this out, exhaust the 17M in cash, and close the doors...”
IMO they did what they did to get the raise, uplist, etc and the short term share price was not a priority/collateral damage. You could say that’s bad for us but it depends on your timeframe. I’m confident in the long term prospects of this company so it’s easy for me to be patient.
I understand the people who are pissed they weren’t able to raise, uplist, reshape the management and professional services team, expand the company’s scope, and immediately put the money to work, however 4 out of 5 ain’t bad and I bet #5 is on the way. Certainly I’m disappointed they weren’t able to do everything at the same time but if they’re still here in a year I’ll eat my hat.
Ha. Sure. Got me. Although hard to look at this strictly on a quarter by quarter basis after all 4th went down yet 3&4 combined went up. From what they’ve already announced Q1 2022 will be strong plus we’re still waiting to see what they’re going to do with the raise. Relative to the cap raise the money they’re spending is insignificant. I know many of you don’t have confidence in their ability to steward capital but I’m hopeful the recent changes and additions will bring smarter choices and healthier returns.
The increase in costs is understandable given the cap raise, uplisting, new hires, etc. and it’s also negligible relative to their cash on hand. They spent a little, they got a lot. Takes money to make money as most the nasdaq can attest.
What specifically makes you say that? Revenue increased 60% over 2020. Highest Q3 & Q4 net bookings in company history. Gross profit margin up 3.3%. Is it just the the Q4 net numbers?
I agree it’s a long way away from where it should be if it had a reasonable valuation. Perhaps we’ll get some insight into what they’re going to do with all that cash on todays call.
Undervalued by almost any measure I believe. All the negative sentiment regarding the r/s and additional shares drove the sp down but in my opinion that was the wrong reaction. This is a healthy company that needed to make those moves to uplisted and access additional capital and the sp shouldn’t have been punished to this extent. Sure, most of the time we see an r/s it’s from a struggling company trying to, for example, artificially increase sp to avoid being delisted but that’s not what we have here. I really think CEAD is way undervalued. Can’t wait for the earnings call.
“CEA Industries' current market cap is 'only' $20 million, but it has $22 million pro forma cash as of the end of September.”
https://www.benzinga.com/analyst-ratings/analyst-color/22/03/26328057/these-7-cannabis-stocks-may-be-underappreciated-as-market-continues-to-rebound
Crickets…
CEA announced it will hold earnings conference call for the fourth quarter and full year of 2021 on Tuesday, March 29, 2022, beginning at 2:15 p.m. Mountain Time.
How much sales to get a buy rating from you? Give us a target. Curious to see what you think they need to be doing on the top line for you to change your tune.
How much sales to get a buy rating from you? Give us a target. Curious to see what you think they need to be doing on the top line for you to change your tune.
Ian K. Patel, Citigroup veteran and Wharton MBA , Named CFO
Louisville, Colorado, March 15, 2022 (GLOBE NEWSWIRE) -- CEA Industries Inc. (NASDAQ: CEAD), a leader in controlled environment agriculture (CEA) systems engineering and technologies, announced today the appointment of Ian K. Patel as Chief Financial Officer and Treasurer of the Company, effective March 11, 2022.
“Ian brings a proven track record of delivering results and accelerating growth, and our Board of Directors and I are thrilled to welcome him to the executive management team,” said Tony McDonald, CEA Industries Chairman and CEO. “Ian’s extensive experience advising and leading organizations in their finance activities will serve our company and our shareholders well.”
Mr. Patel has extensive experience as a financial leader, having held several executive roles in the energy sector and investment companies and spearheading improved processes to their financial models and risk management compliance.
“I am excited to step into the CFO role at CEA Industries to support the company in its continued execution of its strategic plan, to accelerate growth and to deliver value to its shareholders,” said Mr. Patel.
Biographical Details
Ian Patel was most recently the Consultant CFO for Maxwell Financial Labs, Inc., a B2B SAAS mortgage servicer. At Maxwell he advised the company on their accounting and risk management processes, long and short-term financial models and led their capital raising efforts for subsidiary businesses.
Prior to Maxwell, he served as Vice President of Finance, Treasury and Investor Relations for Fourpoint Energy LLC, a $5 billion multi-strategy energy enterprise. At Fourpoint Energy he led finance, planning and risk management.
Before Fourpoint Energy, Mr. Patel served as CFO at True Oil Company, LLC / S&A Resources LLC, a private equity-backed oil and gas company. Prior to True Oil he was Director of Investment Banking at Citigroup Global Energy where he provided strategic advice to energy companies on issues including capital structure, M&A, and debt/equity capital raises.
Other positions Mr. Patel has previously held include Investment Banking Associate for Goldman Sachs & Co., and Corporate Lawyer, Mergers and Acquisition, for Debeovoise & Plimpton, LLP.
Mr. Patel holds an MBA from The Wharton School and a Juris Doctorate from Harvard Law School.
CEA Industries Names Ian Patel CFO
Can’t wait. Think they’ll be good given what’s already been communicated.
Surna Cultivation Technologies Signs $2.1 Million Contract
https://www.globenewswire.com/news-release/2022/03/10/2401054/0/en/Surna-Cultivation-Technologies-Signs-2-1-Million-Contract.html
I’m buying more too
Totally agree. Something’s cooking. Thanks for posting.
There has been demonstrable sales growth in what is now their Surna subdivision and if they acquire or merge with a couple more Surna similar companies then we’ll be in good shape. At least that’s my hope and my expectation. But who the hell knows…
Interesting, PR is Surna not CEA Industries.
I didn’t say anything about good news, I was just saying I have confidence in the people running the show. Certainly none of us wants to see the SP where it is now but I’m reasonably sure bitching about it here isn’t going to help our collective cause. The truth is none of us has any genius insight, we’re all playing armchair quarterback. I’m just choosing to have faith. The minute I lose faith I’ll sell my shares, move on, and (obviously) stop posting here. I understand a persons need to vent frustrations, and I’m not trying to brow beat you, I’m just voicing the glass half full side.
I’m with you. They know what they’re doing. Their professional services know what they’re doing. Look at the people they’ve hired to take them through this process. Seasoned veterans.
I have a very hard time believing they’re hiring all these people, going through the trouble of uplisting, and fundraising just so they can accelerate into disaster. This company can’t get noticed (even when unarguably good news is PR’ed) on the street so a change in venue seems like a good move to me. Plus, in addition to the fiduciary responsibilities, the people that operate this company have a vested, and yet to be vested, interest in the share price.
Remain calm. Hold the line.
No idea. Strange. Daily volume swings alone are super weird.
Thanks for those. Good god y’all indeed.
CEA Industries Inc. Announces Appointment of Two New Board Members
https://www.globenewswire.com/news-release/2022/01/20/2370288/0/en/CEA-Industries-Inc-Announces-Appointment-of-Two-New-Board-Members.html
Thanks!
Yes!!!
Hope people sell here. I’m buying.
I’m long. Done homework. SRNA is undervalued, for now. Happy holidays all.
I just can’t figure out how anyone, MM or otherwise, makes any money on these tiny numbers. The volume is anemic, the transaction fees can’t amount to anything, the day rage is negligible and there aren’t any options to trade. Clearly I’m missing something.
What in the wide wide world of sports is going on with the trading action? All these tiny buys/sells. A few 20k+ but not that many. Anyone have an idea what these tea leaves are saying? Are people trying to keep the price down or is it just people messing with each other for fun?
I’ve said it before and, at the risk of beating a dead horse, I’ll say it again: there isn’t anything inherently wrong with a reverse split. Sure, many companies that deploy a r/s do so under dubious circumstances and subsequently trade worse for wear but that doesn’t happen every time. There isn’t anything shady going on at Surna. Simply put, if a company is healthy going into a reverse split then it will come out of the reverse split just as healthy. Is Surna healthy now? You bet it is. Disagree with that? Fine, tell me where I’m wrong and let’s have a debate something more consequential than the name change or the planting of trees.
So currently trading at <1x trailing 12 month revenue!
Any predictions?
Once it uplists gotcha just couldn’t figure out how anyone would short it where it is now.
How would you short srna? Just curious.
Thanks. Interesting read.
Interesting. Thanks for the post. I’ll read up on it.