Manipulation happens at all levels of the market, and sometimes keeps a stock price stagnant. But if a company is doing the right things and wants its shareholders to realize increased value, manipulation can only keep a stock price at bay for so long.
So let’s examine what the company is doing to ensure sustainable increased shareholder value.
I’ll preface with this...
There’s no way of knowing if the stock price IS being manipulated and for what purpose. And one can’t control the individual actions of others when it comes to buys or sells anyway.
Let’s take a look now...starting with the CEO’s actions, past, present, and future.
Past:
Roger Mortimer has stated through various avenues that he wishes to bring shareholders maximum value. He’s also taken action to support this desire by reducing the O/S and favorably setting the share structure. Profits from the company’s business have largely been used for expansion instead of issuing shares to build out infrastructure and open new brick and mortar retail locations, including the flagship franchise model Snakes and Lattes Midtown. Within Snakes and Lattes, there is also a division of publishing and distribution.
Present:
Franchising is in place and a voluntarily audit has been ordered and initiated on the company to bring further transparency, while working to uplist to a higher exchange.
Future:
Roger Mortimer has stated the possibility of further reductions in the share structure and hinted at a share buy back.
What does all this mean?
Past:
A company’s share structure must be realistic in order to draw investment from the upper echelons. Roger Mortimer has done an excellent job managing this and maintaining a favorable share structure through share reductions over the last year. Basic law of supply vs demand comes into play when the company creates demand for its shares. The demand has far outweighed the supply over the last year as we’ve seen the PPS move from sub penny to mid teens.
Additionally, expansion has taken place by re-investing profits to fund the companies growth instead of on the backs of its shareholders via massive dilution.
A distribution channel has been established to ensure recurring revenues outside of the standard brick and mortar. Exclusivity on popular gaming titles has contributed heavily to the bottom line.
A publishing division has also been established. No games have been published yet, so this could fall into future guidance. But it was established last fall, thus listed under past.
These actions over the last year were huge when it came toward maximizing early shareholders value. They will ultimately be looked back upon as key decisions that helped make the company rather break it.
Present:
Franchising has started. This growth and expansion will be at the financial cost of the franchisee vs corporate. However, corporate will realize a percentage of the profits coming from all future franchises.
Franchising changes the scales of economy and tips in favor of corporate. More profits will be realized at the corporate level from the franchise locations with less of those profits needing to be utilized toward expansion and growth.
This is why it was so important that the flagship franchise model be absolutely perfect, and self funded. 20/20 hindsight, the delays were worth it!
Speaking of “delays”, in hindsight, once the audit is completed, it will be well worth it!
The audit leads to the uplist. The uplist opens investment opportunities to a larger community with much stronger and more powerful buying power.
I would imagine that present actions with franchising and audit/uplist will assist in taking the share price to higher levels.
Future:
As more profits are realized and held at the corporate level, some of those funds could go toward a share buy back to increase shareholder value if the PPS is not at the levels the CEO wishes for his investors.
However, a buyback may not be the first option. Healthy profits can be used toward other efforts like marketing, that would ultimately help draw attention toward the company and the opportunity for investment.
Lastly, I offer these comments only based on the Snakes and Lattes brick and mortar retail division. There are other large revenue producing divisions in Gro3, Natural Stuff Inc., and Interlockings (which will be spun off into a separate entity and shareholders will receive dividend shares in that new entity), that multiply the potential for increased shareholder value.
So, present day manipulation / PPS stagnation and all...there are plenty of reasons to stay invested long term to realize much more return on investment, and Roger Mortimer has proved it to early shareholders, is proving it to current shareholders, and will prove it through his continued actions to future shareholders.
I don’t see this as a day trade or short term play. This is an investment and deserves a long term outlook based on my views. Long term outlooks generally pay no attention to intraday price swings or mid term PPS stagnation potentially caused by “manipulation”.
Long AMFE
Rec
