Marijuana - Public Weed Stocks & Analysis

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ONCI $0.0007 - CEO Berman Delivers On Promise And Gains Credibility, Investors Look Forward To Entry Into Medicinal Marijuana And Related Sector 1 comment
Nov 5, 2016 8:43 PM | about stocks: ONCI

Investment Highlights:

New CEO Steve Berman with Fortune 100 executive experience delivered on his promise to announce the company's first revenue-generating JV.
ONCI is the cheapest marijuana-sector stock I've ever seen and one with great upside potential.
The company expects to announce it's first marihuana-related JV shortly.
CEO Berman plans to attend the 5th Annual Marijuana Conference & Expo to be held in Las Vegas, Nevada from November 17 to November 18, 2016.
Unlike other CEOs, CEO Berman communicates clearly, frequently, and effectively with ONCI investors.

Discussion

According to On4 (OTC: OTCPK:ONCI), it is a holdings company with an aggressive focus of acquiring proven and profitable businesses. Our first project is focusing on businesses operating in the $1.7 trillion U.S. healthcare industry. Our newest targeted businesses are operating in the trillion-dollar mobile App space. Our first acquisition in the mobile App space is FMS Marketing a global creator and distributor of mobile Apps for Android and iPhones. We are also targeting businesses to acquire and joint venture with in the medical marijuana and emerging MJ ancillary products space.

This is the first time that I became interested in a triple-zero penny stock (closed at $0.0007 on Friday). I did it primarily for two reasons: 1) CEO Steve Berman has Fortune 100 executive experience, and 2) ONCI is an up and coming medicinal marijuana play, and the cheapest one I've seen. I missed the boat on several marijuana plays before because I blinked and lost. But I could not let this one pass me by.

ONCI's CEO Steve Berman twitted several times in the last two weeks updating the investment community on exciting upcoming new developments. The stock started to climb rapidly and took a break/healthy consolidation near the 7c mark while the market waited on Company news regarding its first joint venture.

As promised, the company delivered and the JV news were made public Friday afternoon. According to the press release, ONCI acquired Forty-Nine Percent (49%) equity/ownership stake in Family Mobil Safety(NYSE:FMS) Marketing - a distributor of a safe driving app.

CEO Berman commented:

"The FMS revolutionary safe driving app is currently generating Thirty Five Thousand Dollars ($35,000) in average monthly revenues and is expected to increase the recurring monthly revenues as organic traction amongst auto dealerships and auto insurance companies begins the next stages of growth."

Mr. Berman added,

"We are thrilled to announce the acquisition of FMS and their distribution network of the revolutionary drive safe App, as it immediately brings a profitable company into the fold. In fact, we will be announcing the closing of a number of final stage vendors which will provide a substantial increase in FMS/On4 Communications recurring monthly revenues over the coming weeks, so please stay tuned."

The safe driving app sounds very convenient and something that I am personally interested in. Here are 3 key app components:

-First, the app is automatically enabled as soon as you start driving and automatically replies to any incoming text messages in a way that's similar to an out of office message so the text sender knows you're driving and can't reply right now.

-Second, it silences audio tones for texts, emails, and phone calls.

-Third, it blocks Web browsing, texting, and outgoing phone calls (except for emergency 911 calls).

Since the news were announced just prior to closing on Friday, November4, 2016, investors did not have the time to fully digest the news causing the stock first dipped to $0.0005 to close in a flurry of trades consuming all the $0.0006 offers to close at $0.0007. I believe some investors felt a bit disappointed because they were expecting a marijuana-related JV and exited the stock. Others who bought the stock at much lower prices might have decided to take their profits and move on. Savvy, patient, and visionary investors on the other hand consumed several million shares at $0.0006 in a flurry of last-second trades.

To me, the news were important primarily because CEO Berman delivered on his promise to issue the first JV-related press release on Friday, November 4, 2016 afternoon as seen in his twit earlier that day. He also twitted a few times before Friday about the impending news. Those following the stock might have been a bit apprehensive as Friday's closing approached. Nothing turns investors off worse than uncertainty and mistrust on those running a company. Personally, I would have been out of the stock if the company did not make the JV announcement on Friday.

Regarding the first JV news, I believe that this is a great start for ONCI because it is a high-margin business with significant upside potential. I believe that the app could have global appeal for consumers as well as mass-transportation companies like UBER, China's Didi Chuxing, and others like them. Recall that Mr. Berman stated that: "ONCI will be announcing the closing of a number of final stage vendors which will provide a substantial increase in FMS/On4 Communications recurring monthly revenues over the coming weeks."

Going back to Mr. Berman, he was named ONCI's CEO on May 17, 2016. The stock reacted favorably as seen by the steady climb from virtually zero to almost $0.006. However, the stock gradually drifted down as the news-hungry investment community lost interest in the stock.

(click to enlarge)

According to Mr. Berman's LinkedIn profile:

"Steve Berman served as Senior Vice President of Time Warner Cable, NY, where he produced similar levels of growth and success. By growing Time Warner's advertising sales from $11m to well over $100m and increasing national sales by 200% during his tenure, he made Time Warner NY the number one billing cable market in the US."

His other assignments and accomplishments as CEO and entrepreneur are also impressive.

Now let's look at the future, it certainly looks fantastic for investors like myself entering the stock at rock-bottom prices. The upside is phenomenal as ONCI is determined on participating in the fast-growing medicinal-marijuana space as it is set to grow exponentially. In its company description ONCI states"

"We are also targeting businesses to acquire and joint venture with in the medical marijuana and emerging MJ ancillary products space."

In a November 2, 2016, CEO Berman announced:"

"I can confirm that 1 of the JV's is in the technology sector and 1 is in the MJ sector. Hold on to your hat."

Well, the first technology-related JV is now a reality. You can guess that will be next. When will that announcement be made is anyone's guess but anticipation for that event is sure to bring in new investors to the stock. Would it be before, during, and after the November 15 - November 18, 2016 5th Annual Marijuana Conference & Expo to be held in Las Vegas, Nevada. CEO Berman is planning to attend this event according his November 1, 2016 twit:

News this week on 1st Joint Venture. Also, attending Las Vegas MJ Biz Conference Nov 15th-18th https://mjbizconference.com/

In a History Channel documentary entitled "The Marijuana Revolution," an expert in this industry predicted that "medicinal marijuana will be legal from Portland Maine to Portland, Oregon."

Medicinal marijuana is expected to make a significant dent in the uncontrolled use of opioids for pain. The opioid crisis destroys lives and families. According to recent estimates this addiction costs the country over $70 billion in annual medical expenses. In 2014 alone, nearly 2 million Americans were abusing opioids. These addictions resulted in more than 14,000 overdoses that year. This is one of the reasons why more states will ultimately embrace cannabis-positive legislation.

In addition to cutting back on opioid usage, medicinal marijuana is being investigated to address a number of diseases ranging from Parkinson's to cancer. I believe the medicinal-marijuana industry is in its infancy and years from now will be like cell phones are today. Many of you might not know that AAPL was a penny stock many years ago.

Conclusions

CEO Berman with a wealth of experience bringing companies to higher levels of revenues and profitability is excited and focused on making ONCI a fast growing company. Being a holding company it plans to diversify into several growth areas like health, consumer products, technology, and medical marijuana.

The Company is set to begin reporting growing revenues unlike many OTC companies making little or no revenues and having significantly higher valuations than ONCI.

ONCI's upcoming entry into the fast-growing medicinal marijuana sector will cause a step change in valuation from current levels. I believe the stock will start rallying in anticipation of these news. Recall that ONCI traded 8 times higher than Friday's closing shortly after the appointment of Mr. Berman as CEO and as recently as June 2016.

As a shareholder, it was critical for me that CEO delivered on his promise to announce the company's first JV on Friday, November 4, 2016 as promised. I personally like the CEO's open and frequent communication with investors, unlike other secretive executives who only add to the uncertainty and fear with their silence.

Investors interested in ONCI should evaluate all the risks and uncertainties related to owning stock in sub-penny stocks like ONCI before investing.

Disclosure: I am/we are long ONCI.
Stocks: ONCI