22nd Century Group Inc (XXII)

[linuspop]

I dont think anyone expects XXII to reach profitability in 2015, hence the tepidness reflected in the current stock price. If they were about to turn profitable, they could have used cash flow from operations instead of raising $6M. However, with that extra cash on hand, XXII has the means to carry out their marketing activities for Red Sun, submit Brand A data to the FDA for review this summer, expand Magic sales into thousands of stores across Europe, etc. X22 and at least one Asian deal in 2015 are also priorities, and let us not forget our partnership with BAT, so it is possible any single event could tip the company into profitability sooner than most of us are thinking at the moment.

Despite the rather large salaries and option grants XXII management awards themselves relative to to-date results, XXII is still a pretty lean company without huge overhead costs and minimal staffing. Therefore, a major licensing deal could still be a windfall in profit generation. Or if Red Sun/Magic sales take off...