Amazing potential, wonder if people actually realizes what’s about to happen with this, yet, small CBD company. Not only have we seen tremendous revenue growth from their CBD line of products but the addition of the SAM’s units attacks a whole new market; personal injury usage paid for by no fault insurance. The company says that one unit is expected to bring in $14k/year, 100 units would be $1.4M – that alone is, in my estimation, is more than all revenues for 2018. The commitment calls for 1,650 units in 2018 – 1,650 x $14k = $23M so if they order zero units in 2020 we can expect $23M in Revenue that year. This year should come in around $12M based on their monthly commitments, over 10 times 2018 Revenue (my estimate). That’s GROWTH! And this is only the SAM’s units, not counting CBD product sales. In my humble opinion that 10x growth, everything else being equal, should have the potential to grow the stock price 10x but even 5x (if one assumes dilution from capital raise etc) would give us a stock price of 8 cents x 5 = $0.40.
Last year the company also announced a slew of new manufacturing equipment so I would expect to see an expanded product line as this equipment get online (probably needs certification which takes some time). This new equipment not only increases the output capacity and efficiency in manufacturing but also should have excess capacity to increase private label production.
Lastly, the teams assembled in this company are getting more and more impressive from doctors with vast background and strong reputations to other professionals with government experience (ex-senator) to attorney with personal injury/no fault experience and TEN’s units/pads (Mobius) background.
Nothing is perfect and as the company moves forward I’m sure there will be growth issues, but from my vantage point this winning formula will be hard to mess up. I also see the company as a potential take-over candidate by another, larger, public entity that wants the Revenue (potential) and recognizes what that will do to its own market cap and market coverage.
The above just my opinion, do your due diligence, but I remain VERY bullish and believe the current stock price is extremely cheap when I gaze into my crystal ball
