Replies to post #2456 on CV Sciences Inc (CVSI)

[Det_Robert_Thorne]

Depends on revenue and income growth

Right now, IMO, CannaVest's revenue and income are being heavily influenced by the creation of the multi-level marketing company/scheme KannaWay, which requires members to buy product in order to keep their position in the payment plan.

Since KannaWay went live in early April, the members likely bought a few million dollars worth of products made by CannaVest or using CANV CBD oil as part of their formulations, because they were required to do so to hold their positions.

So building the inventory to support those sales to KannaWay members, and the resulting sales in March, April and May, will likely show some reasonably good sales figures for CannaVest.

The thing is, a lot of MLMs quickly burn out after the initial surge of eager new sales associates find out its a lot harder to build a sales business.

Based on evidence such as reduced traffic to the KannaWay site, less frequent "daily" KannyWay online hangouts, the removal last week of the ability to comment on the hangout page (fewer and fewer comments,) and less well-attended "big" events, I think that the initial KannaWay business has already peaked.

CannaVest's 2Q/14 will probably show a $100K - $300K profit on sales of $3.5M, but even at the high end, that's an EPS of less than $0.01.

3Q/14 will tell the tale. If KannaWay does continue to grow, then we'll see increasing revenues. If not, then CANV's revenues will decline sequentially, and that will be bad for the stock.