My version of why I also like Canb
Canbiola is a speculative company in a speculative sector. Given this, there are certainly risks, however there is also great to possibly massive reward. The key ingredients to a speculative company is:
1) Proven revenue growth for the company
Canb has that checked.
Revenue in 2017: $123k
Revenue in 2018: $669k for growth of 440%
Revenue in 2019: on target for at least $2.4 million for growth of at least 260%
2) Potential revenue growth for the company, along with being multidimensional
Between full vertical hemp integration, SAM/TENS medical devices, along with Pure CBD sales through medical, wholesale and retail channels, Canb has several different revenue streams. The most exciting appears to be the hemp cultivation, aggregation and processing, where it has been shown there is a tremendous demand for aggregation and processing.
Canb is checking that box as well
3) Revenue growth potential for the sector
There are many estimates that the Cannabis hemp industry will go from under a billion dollars in 2019, to $20-$24 billion in the next four years. That is absolutely incredible, and no other sector can come close to that potential. This revenue won’t be realized until the regulatory veil has been lifted.
The FDA and Congress need to check this box
Many investors are short term, and revenue along with sentiment are the two factors that far outweigh all the others.
Unfortunately, speculative companies also have their detractors. Often, they are those who got burned by another company that was actually a scam, and then come to the false conclusion that all companies must be scams.
It's been falsely stated that Canb has shady accounting practices. Canb uses industry standard accounting practices to report financials in their filings, and there has been no substantiated proof they are doing anything shady. These statements are in their legal SEC filings. For example, the drastic reduction in cost of cost of product sales from $300k to $141k from Q2 to Q3 this year was declared impossible, and therefore they must be faking numbers. Those who are experienced investors recognize Canb’s announcement that through the hemp processing agreement, they now receive base pure CBD at cost with no markup, which in turn is reflected in a reduction of cost of goods used to manufacture the final product. Also, the high and growing AR figure was called out as fraud, with a lack of understanding the timeframes of invoice payments from insurance companies. In layman’s terms, insurance carries take much longer to pay invoices than other companies. Therefore, companies that perform medical billing typically carry AR balances longer and are higher than normal.
It's been falsely stated that Canb is a scam, run by scam artists who have been busted multiple times. It’s total exaggeration of reality. Over a decade ago the CEO committed two FINRA securities violations. This was for (at a high level) failure to have supervisory procedures in place for investment advisors, and not adequately providing disclosure information for penny stocks. These are the same violations that companies such as JP Morgan, Merrill Lynch and Raymond James were charged with recently which does not constitute actual fraud or scamming. One of the Directors has been brought up on serious SEC charges, and was dismissed from the board immediately afterward. Surprisingly he is still the Florida registered agent for Canb. However, those agents merely serve as a mailing address for companies that are registered in Florida, but the business operates in another state (NY). This is common even amongst the largest companies, as states such as Delaware are used for tax incentive purposes. The Florida registered agent has no direct involvement in the company, with some even charging as little as $35 annually. Read the company filings for CVSI, which was busted in 2017 for actually defrauding investors. They were actually scamming investors, however it didn’t stop investors from investing in the company.
It's been falsely stated that everything Canb says is a lie in order to scam people. For example Canb announced the ordering of product dispensing machines that they anticipate would be installed by August / September, and it was called out as a PR stunt. An experienced investor would recognize that a true PR stunt would have included boastful revenue (see every single one of PURA’s daily PR’s). Canb’s first PR did not even mention revenue. Yesterday’s PR provided an update, where the first 10 machines are now being deployed and the only mention was that it would “increase revenue”, along with their strategy. Those with real business world experience recognize that optimistic project deadlines have a tendency to be missed. This certainly does not make the project or the company a failure. There are numerous reasons for delays, and missing a deadline does not automatically constitute scamming. If yesterday’s PR was just a stunt, it would have clearly touted revenue.
It's been falsely stated that the significant drop in Canb’s share price over the past 9 months is simply because they are a bad company. The inexperienced investor doesn’t understand the influence that industry sector sentiment has which can completely override fundamentals. In the exact same timeframe, and almost similar performance trajectory, a similar and more established company CVSI has also fallen 88% in the past nine months from previous highs. The true test will be when the industry consistently starts to pick up steam after regulatory clarity. If Canb does not rise with the rest, that is the time to be concerned (for the record, I think Canb will wind up rising above and beyond the rest)
It's been falsely stated that reverse splits only occur with companies that are fundamentally bad. Sleek previously outlined the reasons they occur, and why an up listing to the Nasdaq is completely different.
I am not worried about Canb, and confident it will pick up (along with the rest of the sector) when more clarity is gained. However, beware of misleading information that is not substantiated, it should be recognized as just an opinion.
