SMKY has surpassed a couple of the "common benchmarks" for pinkies, IMO.
#1 - They are fully reporting to SEC. This includes audited financials. The 'stinky pinkies' can do what they wish when they wish without impunity. Yes, I know the QB is not QX and the QX is not NASDAQ, but they are a fully reporting company. I celebrated when they uplisted to the QB and will do so with each successive tier.
#2 - They have a verified product. Not only a legitimate product but it is a product which by itself induces buyers to repurchase more. The stinkies 'claim' products, R&D, services, technology, etc...always 'coming soon' like the next movie trailer.
#3 - They have a CEO that has (so far) kept his word and been transparent in his business plan. [BTW, not claiming he won't continue to do so, just trying to be objective] This is the most important factor, to me, when searching for companies on this level. He has consistently attempted to retain shareholder value as a primary consideration.
#4 - They have a business plan and are both aggressively and creatively following that plan. [Here is where some may disagree, IMO. Where I see an individual who is savvy enough to adjust his plan to the market, some may see a CEO who seems to lack stability in his plan.] It is my personal assessment that Mr. Feintech has acquired a lot of wisdom and a feel for the consumer through his decades of experience and is quickly adapting to the consumer's choices and needs rather than stubbornly refusing to adapt to an evolving market. [See Eastman-Kodak for how 'successful' that move is, once the pearl of technology, now in bankruptcy.] The oven lease financing was very creative - no offense, but most people would not picture a man of his age to roll out such a novel method of financing!
MORE HURDLES/TESTS TO COME:
#1 - Revenue The bottom line is very important. I appreciate the way honest manner in which the CEO declared in the chat yesterday that our pps is properly valued for what the company is right now. Sales is the lifeblood of any company, especially one which appeals to the food consumer.
#2 - Long-Term Financing No company like SMKY, which has recently moved from a development-stage company to a production-stage company, can survive for too long without proper reserves. More often than not, more companies enter the 'toxic financing' point here than earlier because so many CEO's believe they are SO CLOSE to becoming profitable that they gamble their future on immediate success. Sometimes it works, often it does not, but it's always a gamble.
#3 - Profitability I already mentioned revenues, but this is different. Revenues can increase, but so can overhead. As each quarter passes and the balance sheet continues to improve, so does the overall health of the company. Whether it is immediately realized in the pps, doesn't matter as much to me - because sooner or later the market will "catch-up" to solid fundamentals.
#4 - Appeal When a hedge fund with a proven track record or a high-level investor "puts his money on the line" and invests - it gives instant credibility in the eyes of investors in general. Sometimes it is a famous personality who endorses the product (ever watch TV?); perhaps it is some world news which causes the stock to run; maybe it is being mentioned on television stock shows - there are many avenues which make a stock attractive. There are many solid stocks, which just don't seem to have the 'It Factor.'
I am looking forward to the first two hurdles being cleared within a quarter (two at most), which will then set up SMKY to begin to eye the others.
All The Best
