CV Sciences Inc (CVSI)

[jefra1965]

Long investors must understand that CVSI is a profitable company and as such should be treated differently.

Very important note: Please Copy/Paste this post to be reposted in case it is removed by mistake.
This is NOT a PUMP AND DUMP like MOST MJ companies.. This is a FACT. Management is delivering as promised. Never forget that. I sure hope they manage to continue this trend and it looks like they will.

35 Top Revenue Generating Cannabis Stocks Ranked as of November 15th:
https://www.newcannabisventures.com/35-top-revenue-generating-cannabis-stocks-ranked-as-of-november-15th/
Where is the P&D In this ranking????????

Long investors must understand that CVSI is a profitable company and as such should be treated differently. CVSI has a PE, never forget that and check around other peers in the industry. CVSI has not even reported it’s first year of profits and the Net Profits margin and FCF (My favorite, who doesn’t like to make money? right?) are both great margins.
Yes, we are in the OTC still, but not for long. The valuation measure that should precede all others is the PEG Ratio. The one used by serious analysts (Wall Street) when a company is profitable:
https://www.investopedia.com/terms/p/pegratio.asp
https://www.investopedia.com/articles/analyst/043002.asp
Read everything you can about this valuation measure (PEG Ratio) and you will always know if your entry point is good or not.

When I started my DD in this company last October the SP was in a range between 22 and 27 cents. I had no cash available at the time but CVSI's numbers stick with me since then. I was after another promising MJ. My thought was to diversify and transfer some cash to CVSI but the SEC enforcement issue was still pending. And then came December and January and everything went up. CVSI peaked @ 65 cents and dropped to 34 cents briefly to settle in the 38 to 45 cents range.
In February through the members of this board I found out that the SEC issue was pretty much taken care of so I decided that the CASH FLOW would counterbalance any possible negative outcome from the SEC settlement. I was right.
My point is that the price fluctuated pennies then and the Q reports were great, the price will fall 8 to 9 cents and no-one saw the potential of this stock in the next couple of quarters where we are now, except for a few savvy ones. So 5-10 cents difference was nothing months ago when you had the chance to really LOAD UP and buy hundreds of thousands (And I did). Then came the Q2'18 report and demonstrated the real power behind CBD with sales jumping from $8 to $12M. It's greatest jump ever. I had to stop and realize we are back to square 1. A 25 50 cents difference today doesn't mean anything when the SP shoots above the $20.00 level by March next year (6 months away) with 2 Q reports included, the Farm Bill, Nasdaq.

Just do your forward earnings analysis, I keep repeating, a great investment under $5.00 and a good one under $6.50

The only reason we are around $4.00 is because of the attack (Pending CA). We should be in the $5.50 $7.00 right now. And still very undervalued. Why? Check the PEG. And because CBD is new and very few people understand what's coming.

The SP could go flat for a month and I would not care because I have seen it happen before many times without any logic to it.

Have you seen any insider selling in the past couple of months. And there is no dilution. what you own is fairly protected by a sound balance sheet.
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New youtube video shows why CVSI will lead the way.

Sleuth; Great finds as always, thanks & keep them coming…
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Thanks ANIA77 for keeping the FACTS straight as always. If a serious investor doesn’t know this by NOW; what can we think about his credibility???
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Thanks Chiro for your PM. The $20M in compensation some well known bashers refer to are the 3.6M shares issued on page 3 of the last 10Q. It is not $20M, this is perfectly normal (Well earned incentives) since the stock price has appreciated 1000% Aprox. in the last 5 months ant this is mostly NON-CASH. The warrants generate some cash and the rest has to be accounted for but it is NON-CASH. I hope this can help.

Issuance of common stock from exercise of stock options
994,433
Issuance of common stock from exercise of warrants on a net issuance basis
2,623,182
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Regarding the sequential growth rate. ALL FACTS TOO

TTM ASGR (Average sequential growth rate Q/Q) = 25.5% (For 148% annual)
TTM ASGR 1 year ago = 13.4%

CVSI TTM Numbers (1 Year ago), Change & Trend
Updated 16 Nov 2018 Stock Price: $4.53 50DSMA = $5.05
Average Price for last period between Q reports = $4.89 (69 days total)

Sales $41.26M. ($16.65M) 148% & rising
Gross Profit $29.8M ($11.1M) 168% & rising
GP Margin 72.22% (66.64%) 8.4% rising slow
Net Income $7.6M (-13.2M) $20.8M & rising
NI Margin 18.42% (NA) & rising
Total Equity $25.7M ($15.3M) 68% & rising fast
Shares Outstanding : 94.4M Far better than most in Industry
SG&A % of Rev. 50%. (93%) Big & improving
Debt: NONE
Cash $11M ($2.3M) & rising fast
Accounts Receivables: $2.5M & growing nicely in proportion to sales.
Prepaid expenses: $1.85M & growing nicely in proportion to sales
Working Capital $18.1M ($4.6M) 293% & rising fast
Working Capital Ratio 7.1 (2.3) & rising fast (Great number for a safe investment)
FCF & Rate $12.1M 29.4%. (None) & rising fast

Other Numbers to consider:
YTD FCF. $9.6M or 37%. Just WAO
Q3’18 Net Profit Margin: 24.2%
EPS: 8 cents PE = 56.62 (very low for a fast growing Co.)
Fwd Estimated EPS (Next 12 Months) = 20 to 22 cents or 163% (conservative pre FB)
Fwd PE = ($4.22/$0.21) = 21.6 (WHAT????)
Market Cap = $428M
Price to Sales Ratio = 10.36 MJ Industry big players = Well above 25
TTM ASGR (Average sequential growth rate Q/Q) = 25.5% (For 148% annual)
TTM ASGR 1 year ago = 13.4% a big improvement.
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Thanks playofthedivine for keeping the long term vision alive. The company is becoming stronger every time a financial report comes out.

This can’t be repeated enough.

CV management team has been together for 4 ½ years with a brand that everybody in the health industry knows. Thanks Stuart Tomc! What’s not to like about that?

CVSI has the core expertise, production compliance and distribution in CBD oils that NO OTHER COMPANY HAS! Not even Charlotte’s Web. What’s not to like about that?

The clever management team of our CBD company can enter the THC space, when appropriate, through buyout or organically, and thus be first to public markets. What’s not to like about that?

High-margin, Profitable, and Rapidly Growing. What’s not to like about that?

CVSI has an early lead and possesses top talent to maintain competitive advantage. What’s not to like about that?

Deep relationships in the industry. Shelf space in the nutrition industry is not easy. I repeat: Shelf space in the nutrition industry is not easy. What’s not to like about that?

Top line Y/Y sales growth was over 143%. What’s not to like about that?
(Note: TTM Sales $41.26M. ($16.65M) 148% & rising)

Sequential sales growth hit 10%. Seriously! What’s not to like about that?
(Note: The current average SGR is 25.5% from 13.6% a year ago.)

A net earning run rate of $0.16, which places CVSI at a PE of 34—quite fair for a 45%, or 143% Y/Y (take your pick) growth story. What’s not to like about that?
“A downright steal compared to most in the cash-hemorrhaging cannabis sector.”

Continued strength in gross margins which hit 73%. What’s not to like about that?

Continued strong Q3 gross profit at $9.9 mm, for a 149% Y/Y jump. What’s not to like about that?
(Note: YTD FCF. $9.6M or 37%. Just WAO)

About to grow their base of U.S. institutional investors. What’s not to like about that?

Oh, yeah, almost forgot. A possible drug candidate. I say possible - Not necessary to the bottom line. Partner with big Pharma, will ya' management?