Top 4 reasons Pazoo is worth investing in
1) Steep Hill methodology and first right of refusal
They have been studying the plant and perfecting their testing methodology for 8+ years.
2) Strategic positioning
Pazoo has lab locations in the three most profitable states for testing (Nevada, Oregon, and Colorado- in that order). Testing will begin in all three by the 4th quarter (we could still have CO in the 3rd)
3) CannabisKing Distribution
Management has been proactive and created another revenue stream for the company with products expected to have substantial footholds in the sector (MJ Payments, AccuVape, and several others)
4) Transparency and Diligence of Management
David Cunic (CEO) and the pzoo team have been straightforward and upfront about their progress. There have been setbacks and delays that were out of their control, but they have used that time positively. They moved into the sector late last year and already have partnered with the best in class (Steep hill), have 3 testing labs, other revenue, and future expansion plans.
Competitive Advantage: PZOO's 2 primary competitors are Digipath (Nevada) and Cannlabs (Colorado).
1) Testing Methodology- The closest competitors have only been testing for 2-3 years and this has been evident in a various instances including the independent Nevada tests scoring Steep hill at 241/250 and the closest competitor around 190. CannLabs also recently could not perform tests promised to their customers due to lack of expertise.
2) Scope
Each of those competitors only have 1 lab, in 1 state, and have made 0 announcements about expansion. Pzoo will have 3 this year and has announced plans to open 2 more labs in 2016.
3) Effectiveness and Efficiency
Digipath had their first PR saying they were testing MJ in early June and claimed to be supplying the first open dispensary in Vegas. The reality is that they are only testing a couple samples a week and running their lab at a loss, bleeding cash. For all of you who want to be able to say we have "testing revenue coming in" this is our current alternative. Until substantial grow operations have produced crops, there is no point to having the facility open and running at a loss.
Potential Concerns:
1) Financing
Until Pzoo has steady revenue and is running at a profit (projected by end of Q4, but likely beginning of Q1 in 2016), having access to operating capital without taking out toxic debt will be imperative. The PR discussing Luchesi bringing them into contact with private financing is encouraging. Hopefully we will find out whether they were successful soon.
2) Federal Regulation
Like any company in the MJ sector, Federal regulation could severely hamper or halt PZOOs progress. There are no presidential candidates that have a legitimate chance of winning who have spoken out against the MJ industry at this point.
