Nov issue of Angel Pub (a lot of followers buy EVIO) This was sent out yesterday:
EVIO, Inc. (OTC: EVIO)
What It Does: EVIO provides analytical testing and advisory services to the cannabis industry in the U.S.
Wealth Advisory Earnings Grade: N/A
• Still completing audited 2019 quarterly reports.
Headlines:
• EVIO continues to release financial statements as audits are completed.
TWA Bottom Line: EVIO has been hanging out around the bottom of its range the past few months. But I’ve got a feeling that’s all about to change. The company is nearly up to date with its financial reports. We got numbers for the second quarter right after the last issue was released. Revenues were up a solid 13% and loss per share came in right about where we’d expect at $0.16. More cost cutting and streamlining has been going on. And that was reflected in the third quarter numbers we got last week. Revenues were up about 9% Y/Y. But it’s the loss per share that’s really exciting. Thanks to cost cutting measures, management reduced loss per share by a whopping 126%. Last year, it was $0.19. This quarter, it was $0.05. I expect we’ll get Q4 numbers within the next month and then we’ll be completely up to date on SEC filings. That’ll open the shares up on any platforms with report-related holds. And that brings a lot more interested investors into the game.
EVIO, Inc. (OTC: EVIO) is still a “Buy” anywhere under $1. The 12-month target is $2.25.
At these prices the risk seems minimal vs the reward. We all know Management is inept so no discussion warranted. I see this being invested three ways:
1. Longs who have held this stock before 2019, have a ton of money invested, this is their home run. These investors lose their minds when bears come to the board to voice their opinions. A lot of 'pumpers' but there is a lot at stake here for these investors.
Thoughts: the niche is what will drive the stock. Can Mass open, can management be replaced? If yes to both, or even one of those two questions, this stock will run hard. The 'buy the rumor' will run this stock. If we sit here and no news from the company, no transparency, no update on Mass; this will dip back down to possibly .21 or lower in December (tax selling etc) If this stock gets some news I really do not see tax selling being a problem this will run based on rumors from day and swing traders and those longs who have put the majority of their investments here.
2. Swing traders who may have owned this before, long, saw issues with management, and now go in and out according to PPS.
Thoughts At .25-.27 this normally runs to .50-.58. if you look at past history from this year. At these prices it's very tempting to jump in without too much downside.
3. Those longs who have lost a lot of money based on no trust management. They feel they have been lied to and mislead.
Thoughts: These investors I imagine played this as a spec play vs owing an ACB CGC etc when they first invested. These were the investors that loved the niche and figured that no on could screw this play up, in this sector, in this niche. No one. Enter the most inept management team in the entire Cannabis sector wihtout a doubt. When the ineptness of management became more than apparent they bailed. Some were caught carrying the bag when the shit hit the fan in June. These ex longs have serious ill feelings about the company, management, and protecting others from their bad experiences.
They appear to be bashers, but in most cases, have absolute reasons (not motives) for sharing their concern and those (#1 above) take it personally because it's their money on the line and see these posters as evil.
We learn from each other people. Look at both sides and invest with an open mind, good, solid dd, and intuition. Intuition is rarely wrong (not investing from the heart) To blindly hold a stock long, in this market, is insane to me but to each their own. To sell in a panic because of the recent cannabis sell off and fear, can also be a mistake. Time will tell. What I can assure you in the cannabis space is to blindly hold any stock long without doing your DAILY DD and looking at the sector as a whole, are absolutely going to lose money short, and med term at best. You buy a stock at $3.00 and it goes down to .25 cents (I can name several companies) and you continue to blindly hold you get what you deserve. The same can be said about day or swing traders jumping out of a stock too soon. I have been guilty of both.
I am back in (I fit # 2 above) If management gets replaced, or Mass opens I simply add to my shares. If not, and we continue down this same avenue of late reporting, non transparency, etc.I am in at .27. I play this as a swing and no more, for now. I feel EVIO cannot really fall of a cliff more than where it presently sits. I have a very tight rope on this one but feel good about EVIO at these current prices. To me EVIO is a gamble even at these prices, but it keeps me from getting bored investing in a spec play. Time will tell.
