Long Term Keeper....
I apologize for starters. Another windy write-up on the potential we have here. I promise to stop after this one. I am just that enthusiastic about this company. I would also like to point out Johnny Davis's incredible write-up. He represents exactly the type of investor I would like to be a shareholder with holding a long term keeper like I believe we have here. I've read a lot the last few days believe me.
For the investor/trader or newbie to the markets that gets tired of bouncing around from stock to stock always finding themselves to be the last one there after the big run and loses because of timing. The more I read up on this holding and the target market in California I get more enthused. Having the opportunity to actually reference another company in much the same arena in its early stages and witness their success provides even more of a comfort level where UAMM is headed. I read where the other company is already profitable in 75 days and is receiving upwards of 80 calls daily on their product. They are targeting revenues in the 8 and 9 digit arena. That combined with UAMM's well thought out plan to do this the right way is even more encouraging. UAMM is actually going to provide more and by virtue of no debt and better SS, be additionally nimble and flexible as they pursue and address market demands and needs. California is a new and large market entering into the MJ and MMJ arena. In its infancy so to speak. UAMM is also in its infancy. We however do not want to limit the reach of UAMM to California. From what I see they have the ability to target the MJ and MMJ industry as a whole throughout the U.S. and abroad.
I am both a trader and an investor. Just how many stocks in the penny world can you invest in and stay for longer periods of time?? Not many, very few actually. So far so good for UAMM. If they can execute there business plan as stated this could be just one of those stocks. After the recent run-up many may feel we are sort of late to the game. In relative terms just how late are we. Getting shares under a penny is amazing IMHO. Very happy to be here. Considering where this company can go gives more indication of whether we are actually late or not. I personally think not. Following shows more examples to explain just where we can go with UAMM.
Considering targets in the .50's and even .70's are we really late to the ballgame or are we still at the beginning? I know what I think.
More details that help me develop comfort in where we are and where we could be heading:
Currently UAMM supports a Market Cap at 3.57 million reflective of 405 million o/s
We anticipate a reduction in our O/S. My example of dropping the O/S to 300 million would place our Market Cap at 2.6 million. I am not privy to what the actual reduction will be. This is just a "what if" scenario.
Our little comparison of the other company:
Other Company: Present Market Cap 222 million O/S at PPS .04 cents
UAMM: Present Market Cap 300 MILLION O/S reduction 2.6 million at PPS .0088
Revised PPS using same market cap of Other Company
UAMM: Market cap 222 million PPS .76 cents!!!!
Why the DIFFERENCE? Compare O/S between the two companies:
Other Company O/S: 5.5 billion (yes billion) 5,500,000,000
UAMM O/S: 405 million (today soon to be reduced) 405,000,000
For the newbie investor, Market Cap is a great way to compare UAMM to the other company. Big Board stocks do this from time to time. It takes into account PPS and O/S Outstanding Shares.
Now, do I believe today UAMM is worthy of the other company's Market Cap of 222 million? No but after UAMM gets Current, Share reductions take place, Name/Symbol Change occur, they begin executing the business plan and selling product, I SAY WHY NOT. Heck a 40 million market cap comparison to 222 million would place UAMM's share price at .10 cents today. The next couple weeks will show if management is serious and that alone could get us a 40 million market cap. Remember a share reduction will push that .10 PPS up even higher.
In reality the items listed above will simply show that management is serious and they are following through on what they said would happen. Does name change or symbol change have anything to do with PPS appreciation? No, except again I will say, it will show that management is serious about following through with what they said they were going to accomplish. This creates credibility in the investment community which is very important. From there each milestone reached should push us closer and closer to that comparison of 222 million folks (.54 PPS pre O/S reduction). It's obvious this management team has performed their research. At that point in time mere projections will push the share price up. Remember we have the benefit of the other company along those lines. As an investor would I rather be a part of a company with less than 400 million o/s or one with 5.5 billion o/s and 10 billion a/s. That 10 billion a/s tells me one thing. More dilution on the way for that company. In our case management has decided to focus on growth and getting the PPS higher. By getting it higher the company can act as a big board stock. Issue fewer shares to fund their build out versus billions of shares. Heck I wouldn't count out UAMM's management being able to get a loan at that point with favorable terms. This is where Johnny was headed I believe. Leave the SS in tact as much as possible. This is key to shareholder and corporate value.
HOT SECTOR (MMJ & MJ not to mention some diversity into other markets. Always good)
INCREDIBLE SHARE STRUCTURE (Amazing at this PPS in a HOT sector)
CALIFORNIA (New market in a large geographic presence. However they have ability to target U.S. and abroad.)
HUGE TARGET REVENUE STREAMS (The potential is being proven already)
NO DEBT (Rarely in penny land)
SHAREHOLDER FRIENDLY MANAGEMENT TEAM DOING THIS RIGHT (Rarely in penny land)
THERE ARE BIGGER BOARD STOCKS (NASDAQ, NYSE, AMEX, ETC) that came from the depth of pennies and made it big. Can UAMM do this? So far so good IMHO. Takes smart management, strong business plan, commitment, smart decision making, hot sector, and some fortunate circumstances along the way.
TIMING...The time is perfect right now for California and MJ/MMJ .
KEY FACTORS NOW: They have a plan in place. Now they must execute, execute, execute. Which is exactly what they are doing now. Folks if time tables are missed days here and there keep your sights on the prize at the end. These folks are taking the time and preciseness to get it done right. We are witnessing two ways to start up a company. The other company diluting 5+ billion shares to begin (not sure if they have toxic notes) with or UAMM which is debt free, no toxic notes, with an incredible SS at 400 million O/S soon to be less. Folks, UAMM is playing music to my ears.
UAMM is an investment not a trade. With a lower float and O/S count there will be fluctuations. My game plan is to continue to accumulate and HOLD for the longer term. No fretting the ups and downs. No trading here. Stocks with low floats can take off and never look back. Exactly why sub pennies for me are being locked away in a vault. Daily tick fluctuations may soon be nickels later even more.
I am excited to see how this plays out and have the patience to be here while it does! Honestly patience may not have to wait to long IMHO!
I will continue to research and dig into this more.
Sorry again for getting windy but I put my thoughts out here to be challenged and seek other perspectives.
In all honesty, to this point in time, is one of the most exciting stocks I have ever been fortunate to be in. Like I said before management's execution is key!!!
To summarize these are my thoughts and opinions. Much of the information can be found just by digging and researching on the web. I urge everyone to perform due diligence and make their own opinion on where they think UAMM can go. I'd love to hear what you find. Be comfortable and know what you own. That alone eases your mind and allows you to be an investor not a trader.
Again thanks to those that pointed me in this direction.
Have a wonderful weekend!
I am done for awhile, I promise.
