A Flight To Quality:
This is not a dis to Helix. But last night, I just found a profitable penny stock. A rare find. At 28 cents with a bad stock chart. This is what I meant when I said, "here was a flight from the entire industry to quality." Here comes another stock that is already where HLIX is trying to be. Why should it be priced less than HLIX was when HLIX was at $3.00? No logical reason. No logical reason at all. You just don't find penny stocks at 28 cents that are profitable either. That stock is IVFH.
Let's do some 2019 year-end comparisons because I'm going to buy 12,000 shares of that stock today.
HLIX comes in at $15M with gross margins of 50 percent, growing revenue.
IVFH comes it at $58M with gross margins of 28 percent, growing revenue.
Holy Smokes! Look at the lead. Granted, HLIX does enjoy high margins within a high growth industry. So, they've got that.
HLIX has a market cap of 20M and enterprise value of 25M
IVFH has a market cap of 9.5M and enterprise value of 10.5M
Holy Value, Batman! Can you say 50% discount to 3 times revenue?
HLIX - 20 cents
IVFH - 28 cents
HLIX net loss is $9.5M
IVFH net *profit* is $220,000
I also said that day in a prior post, "Case in point: Luby's (LUB). The Pappas brothers buying the stock from the time they took over the company in 2000 to present day."
Turns out, the son of one of those Pappas just took a seat on the board of IVFH and is the comopany's largest shareholder. An activist shareholder that started buying last year, which is how he got a seat. And I know from a proxy war with Luby's that that son has very close family ties to Bandera Partners, another activist hedge fund.
The point is, the cannabis industry was out of touch with reality years prior. IVFH has some head winds being in a competitive upscale food industry, especially in times like this. But, look at the head start!
These two are not scam stocks, which is comproised of most of the penny stock universe. These are legitimate businesses. Just saying that HLIX has come down to Earth. And that's a good thing. Lots of good tings out there. Lots of good competition for my money out there. And the best thing about it is that my business partner, Mr. Market, likes stocks that go up!!! What a dumb #$#! But that's okay. That's why it's such a good business relationship we have. :)
