Pacific Ventures Group Inc (PACV)

[technicolor turncoat]

PACV DD Checklist: Version 3.15.2020


Why invest in PACV: Thesis


PACV is currently undervalued and will be booking $30m+ in revenue this year ($7-$9m per quarter).
The company is focused on both organic and acquisitive growth, and can now sustain itself without using toxic dilution. PACV has investors/owners who have skin in the game (TCA, Dr. Gulinson, the Camardas). The company has an appealing share structure.


PACV acquired Seaport Meat Co, a company that “generated approximately $28m in revenue over the past year…”

Link to PR: https://www.otcmarkets.com/stock/PACV/news/story?e&id=1499578
Link to 8k: https://www.otcmarkets.com/filing/html?id=13808005&guid=MG2jUaWsW4gR2Zh
Learn more about Seaport Meat Co: http://www.seaportmeat.com/about-seaport-meat/


A PACV owned company, San Diego Farmers outlet, generated "$5m in revenue in 2019".

Link to PR: https://www.otcmarkets.com/stock/PACV/news/story?e&id=1505345
Learn more about San Diego Farmers Outlet: https://sandiegofarmersoutlet.com/


PACV is “Targeting 10%+ Organic Growth from $33 Million Annual Revenue Base” ($36,000,000) in 2020.

Question: How is this annual base number calculated?
Answer: $28m from Seaport + $5m from San Diego Farmers Outlet = $33,000,000 revenue base

10% organic growth from the $33m revenue base = $36,300,000 ($33,000,000 x 10% = $3,300,000 + $33,000,000).

Link to PR: https://www.otcmarkets.com/stock/PACV/news/story?e&id=1505345


Pacific Ventures Group Pays Off Convertible Notes to Avoid Potential Equity Dilution.

Link to PR: https://www.accesswire.com/579811/Pacific-Ventures-Group-Pays-Off-Convertible-Notes-to-Avoid-Potential-Equity-Dilution

Some information to consider in this PR:

“We look forward to keeping our shareholders and the Wall Street community updated as the company continues to integrate its recent acquisition, improve its efficiencies and identify organic and acquisitive opportunities for growth."

+PACV is providing value for its current shareholders by sparing them from dilution.
+PACV is focused on attracting the attention of Wall Street (new deep pocket investors).
+PACV is improving its efficiencies (efficiencies = profitability).
+PACV is excessively looking for new acquisitions (even more revenue).

By the way, the definition of acquisitive is: excessively interested in acquiring money or material things.



Checklist continued in bullet point format...

+Dr. Mark Gulinson and his wife Melissa own 27,750,866 common shares after increasing their position.
Link to SC 13G/A: https://www.otcmarkets.com/filing/html?id=13889648&guid=lEXWUnmv0E3oi3h

+The Camardas will own 2.5% of commons (around 14,250,000) as a part of the deal to sell Seaport.

+Shannon Masjedi owns: 40,000,000 common shares.

+ACD Trust, Shannon MAsjedi owns: 65,226,901 common shares.

+Marc Shenkman owns 11,414,000 common shares.

+TCA Global owns preferred shares in PACV held companies.

+Per the last PR, toxic dilution is over. In fact, PACV has not diluted in several months (OS unchanged).

+PACV will book over $5m in revenue in 2019 10k
($5m from San Diego Farmers Outlet, and $2m'ish revenue from the Seaport acquisition in Dec.

+PACV Q1 filing should reflect $7 - $9m in revenue.

+PACV is poised to up-list to a higher exchange.

+PACV let the RS expire.

+399m float / 570m OS


Price-to-sales ratio

If you use the 2020 projected revenue of $36m as the revenue input, the price to sales ratio would be: .06 (Revenue $36m, current price .0036, current OS 570,859,333)

If you use the 2019 ACTUAL revenue (around $7m) as the revenue input, the price to sales ratio would be: .29 (Revenue $7m, current price .0036, current OS 570,859,333)

A price to sales ratio of around 1.00 is considered very undervalued. Some would even say 2.00 is undervalued. PACV's current P/S of .06 makes it grossly undervalued.

Question: so if the P/S were at 1.00, what would the PACV pps be?

Answer(1): If you use 2019 sales as the revenue input, the PPS would be .0123
Answer(2): If you use 2020 expected sales as the revenue input, the PPS would be .0628



PACV has so much going for it and has such high price trajectory potential from this level. It will not be a pink sheet stock for long - imo