Nice to see other MMJ tickers having the same pattern... Seems like most of them spent the end of this week consolidating after finding and bouncing from their bottoms. MMJ 1.0 was about the theory. MMJ 2.0 will be about practice. Those companies exhibiting vision AND income will run extremely hard. That's why I'm still in VPOR.
My thesis/expectation through year end is as follows:
Next week (10/5-10/11) we head back into the 3s and possibly low 4s, just on technicals and possibly the 8k. Shorts really should start covering as we get closer to elections. Risk/Reward for them is getting lopsided. We lose < 100% or they lose 500%...
Effect of the conference/cocktail party/new products will generate hype and new investors as we speculate on new distribution deals and will fundamentally bring us to .055-.06 over two weeks (10/12 - 10/25). The last high of .085 seemed to be related to their presence at a conference. Hoping they put out a PR weekly or at least biweekly from now on. Don't tell us the recipe, just let us know dinners almost ready. Less chance of short attacks at this point in the game and uptrend should prevail.
Speculative run up will happen from 10/26 - 11/7 into state MMJ voting. Florida will be extremely important for this ticker. Early November we should be sitting around .09-.11. Election results will obviously provide a binary event... If favorable I expect the whole sector to double or triple to end the year. If they are unfavorable I expect a sell off and will lead to my exit, TBH.
We do have one more catalyst, which is Q3 earnings, expected around 11/20. "Acceleration of sales" leads me to believe we will see an increase in revenue, possibly to 1.3-1.5 mm. Maintaining their gross margin, it's more than probable for them to turn a net profit. Pay down of their loan will not effect the income statement, I believe. They do NOT need to generate a profit this quarter for me to consider it a win, but improvement should be exhibited.
We saw a 30% daily gain already in the last few weeks and we are up 127% from the low. Last run saw an increase of 7400% from the low. I expect at least one day where we see share price increase by over 100% and actually holds that gain.
I see the following scenarios for VPOR by year end...
Positive election results and positive Q3 ---> $0.25
Negative election results and positive Q3 ---> $0.10
Positive election results and negative Q3 ---> $0.15
Negative election results and negative Q3 ---> $0.03
This would make the average value of this play $0.133, which is also the exactly mean of my linear and exponential projections based on performance since the low.
