Helix Technologies Inc. (fka HLIX)

[NobleRoman]

KERN on Alpha

As I said, Jessica has Alan the confused analyst wrapped around her finger:

https://seekingalpha.com/artic


6 Ancillary Companies Trade on Major Exchanges
Akerna (KERN) is a relatively new company following MJ Freeway merging into a SPAC a year ago. The company, which was just added to the Russell 2000 index, has closed two acquisitions, and shareholders have just approved a third. For a company that has been around for a very long time providing essential software to the industry, it has generated disappointingly low revenue to date. The acquisitions add additional opportunity on several fronts, and I am hopeful that the company can continue to use its public currency to build a larger entity. MJ Freeway has had challenges in its Leaf Data business, where it serves Washington, Pennsylvania and Utah.

I follow Akerna, including it on my Focus List at 420 Investor. I also find the warrants (KERNW) to be quite interesting. The valuation is expensive in my view, and I would like to see stronger revenue growth. Before including the shares to be issued for the pending Ample Organics acquisition, the stock has a market cap of $112 million (based on fully-diluted in-the-money shares), which is more than 11X annualized revenue from fiscal Q3. The company got a reasonable price on the Ample Organics acquisition, and, while it will boost the market cap, it will also help on the revenue optics, as the company is generating substantial revenue.

She knows how to manipulate and stroke a narcissist's ego. Clearly, Helix is a better value. Those shares he's talking about are massive, far overshadowing those coming "optics." And, their sales are currently lower than ours, and their margins significantly lower. We have 1/10 the market cap. And when minnows swallow whales, it's always a case of indigestion.

Truth is going to come out of the shake. It's very important for this analyst, btw, to be not wrong as opposed to being right. Another characteristic of a narcissist.

The focus of his article is the ancilliary business. He refuses to include HLIX for psychological reasons. But he does make some good points about this segement, which include:

1) One of the reasons why I expect investors to pay increasing attention to ancillary companies beyond the superior listing status is that it allows exposure to the industry without having to pick winners

2) The investor base is very retail-oriented now, but, I expect that institutional investors will see these companies as a smart way to play the cannabis growth theme over the next few years.

Alan also mentions something I pointed out just a few posts below. He says, "Akerna was able to sell a private placement convertible debenture to two institutional investors in June...."

Err, and he failed to disclose the very likely and significant toxic potential of those, which I explained and quoted directly from the filing, and sourced the filing.