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Re: Penny Masters post# 24349

Monday, 03/02/2020 1:21:22 PM

Monday, March 02, 2020 1:21:22 PM

Post# of 30729
"What is it that will keep this in business much longer?" Since you asked, the answer is many many other things:

From company announcements:

“Pure Health Products LLC division is aggressively expanding its manufacturing capabilities and growing its private label service division”

Analysis: Selling private label is lucrative since these deals typically are in bulk and have commitments attached. Plus. no need for significant advertising costs.

“The medical device division, Duramed Inc has been experiencing record growth and will be expanding its product offerings.” and “directing more resources to our Duramed Medical Device division, which has been far outperforming projections and poised for a break out year in 2020."

Analysis: The revenue for these devices comes mostly from payments from insurance carriers, after these are prescribed to the patients.

"Can B Corp owns and operates a manufacturing facility under Pure Health Products in Lacey, Washington where all CBD based products are blended and packaged. Can B Corp owns and operates Duramed Inc, which sells medical supplies and devices. Can B Corp owns and operates NY Hemp Depot and Green Grow Farms, which are licensed to grow and cultivate Hemp in the State of New York"

Analysis: Anyone can harp all they want about why they are not in every convenience store, or where the vending machines are located. Canb's diversification and full vertical integration within the CBD supply chain is what really matters.

"This quality will allow us to continue to grow our sales channels through medical professionals, but we will now also be applying our resources to develop robust sales channels for traditional consumers as well”

Analysis: Canb recently acknowledged they need to apply more resources in their sales channels to traditional consumers. I like the fact that they focused on vertical integration first. Looking at a company like CVSI, all they have is traditional sales channel. And that's it (unless you count a faltering pharmaceutical division).

"Q1 2019 revenues increased quarter over quarter from the prior year by 741% to $517,160 with a gross profit margin of 49%

Q2 revenues increased quarter over quarter from the prior year by 311% to $633,579 with a gross profit margin of 52.8%.

Q3 2019 revenues increased quarter over quarter from the prior year by 277% to $615,422 with a gross margin of 77%."


Analysis: What is the first and primary thing an investor looks at when evaluating a potential investment? The answer is current REVENUE and REVENUE GROWTH. The experienced investor will understand that profit versus loss matters little in a speculative company with high growth. Many, many companies have seen significant share price increases based on revenue and revenue growth alone.

So, the answer is that there is plenty to keep Canb in business with continued revenue growth.



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