CV Sciences Inc (CVSI)

[jefra1965]

Smart money takes it's time to move. A yearly 10K report makes it a lot easier to know where the company is heading.

jefra1965 Sunday, 03/17/19 03:05:49 AM[/color
Re: MaxwellE post# 45626 0
Post # of 46043
It will finish above $5.00 and stay above $5.00 IMHO It will take no more than 10 trading days.

Here is why: The prize drop after the last 10K report was a mixed reaction from the high expectations, shorts and traders combined doing what they do and just being in the OTC.

Probably the comment from JD (CEO) about the 3 or 4 States having some CBD regulatory issues impacting the company's growth (He meant momentum) during Q4 and also this current quarter. But 4 out of 50 states in retail is only less than 2 to 3 percent of the business having these limiting issues. Exports and On-line have none and whole sales only limited.

But all the sellers caught in this mixed reaction where the price dropped for a couple of days did not make a sound analysis.
1 Mainly, despite the temporary headwinds in some states, the company managed to post a new record in sales. I mean when do you see a company breaking new records when operating with headwinds. These headwinds only limited temporally the growth of a very small percentage of the business. New record in sales proof this.
2 Numbers like: Total Equity, Book value, PE, EBIDTA (29%), FCF(24.2%), Working Capital (356.5%), total year sales, net income, retail sores, WERE ALL OFF THE ROOF IN A YEAR ON YEAR BASIS. Working capital, a very important numbers that indicates the strength in operations went from $4.6M to $21M in ONE 1 year. Add to that the privileged CASH/DEBT POSITION.
Quote:
Working Capital Definition - Investopedia
https://www.investopedia.com/terms/w/workingcapital.asp
Working capital is a measure of a company's liquidity, operational efficiency and its short-term financial health. If a company has substantial working capital, then it should have the potential ...

3. The numbers of shares outstanding increased by just 4.7% YoY. Where in the MJ/Hemp industry can you find such a small number???

If the trend is your friend and all things remain equal to Q4'18. , CVSI will break a new record in Q1'19 (Current Q). I'm expecting just that.


BUT JD also gave away plenty positive tells: (To me the most important ones)
1. Increased inventory on purpose to prepare for what is coming.
2. Enough raw material secured for this year and next.
3. Interest by the big retailers has increased to a point that the company was forced to automare most processes in the sell and distribution department.
4. It is well known in this board that an expansion process has been underway for quiet a while now. I'm talking production and sales.
5. Big retailers are NOT so concerned with the FDA rulings when they talk to JD. They feel and are getting comfortable with the idea of going into business with CVSI. If NOT why would management decide to undertake the two previous projects; automation and expansion.
6. These tells are supported by S. Tomc's latest interviews and podcasts. At least the last 3 of them which are not more than a month old. Where he keeps repeating that the product is going to be everywhere starting with the balms. He did not lie when he said the company sold $50 Millions last year when you take into account the accounts receivables.
7. Why a management team like the one CVSI has, who brought this company to the current success levels in the past 4 1/2 years, all this while CBD was in a gray legal limbo, make the moves they are making without a VERY GOOD REASON.
8. Let's NOT forget the latest hiring of Dr. MacKay. One of the smartest move I have seen lately in the HEMP CBD industry to tackle the regulatory uncertainties. The first and most famous one was to go for the GRAS status.
https://ir.cvsciences.com/press-releases/detail/104/cv-sciences-inc-appoints-dr-douglas-mackay-as-senior
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Smart money takes it's time to move. A yearly 10K report makes it a lot easier to know where the company is heading. All the numbers were very solid. Now HEMP IS LEGAL. In the next 2 weeks a lot of smart investors will be securing their piece of the pie in the CBD booming industry. Remember, the stronger the consolidation the stronger the run up when it comes and it will. And if it was just to diversify within the MJ/HEMP industry, CVSI makes one of the safest plays (Federally Legal and financially independent).

If you still don't believe me, take a look at what happened last years after the 10K report. Check the SP movement for 20 to 25 days after the report on March 30, 2018. It never looked back.
This time it will be faster because the 10K shows a very good profit and Hemp CBD is legal.

Ultra LONG CVSI

From the last Q conference call transcript:
Quote:
We believe distribution is on the verge of broadening to more traditional food, drug, mass merchandise and convenience store retailers. We are intently focused on leading the expansion of hemp based CBD products to a broader retail audience nationally.
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Moving into 2019, we currently have several initiatives in progress to further build the organization and support future growth. 2019 initiatives include the implementation and deployment of efficiency and automation resources including salesforce to enhance all of our sales and marketing initiatives and support our e-commerce expansion.
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In addition, we are also well into the planning phase for an expansion of our manufacturing and fulfillment capabilities to support our growth needs beyond 2019. In fact, negotiations are underway for additional real estate and other infrastructure to support these efforts. We have also worked diligently to secure the hemp based CBD raw material needed to support all of our planned growth in 2019 and even into 2020.
As I stated earlier, we have already commenced efforts to open new larger retail markets and are excited by the level of retailer interest. Our goal is to position the company to be the industry leader in what has been recently estimated by analysts to be a $16 billion category in the U.S. by 2025.