Replies to post #31224 on CV Sciences Inc (CVSI)

[jefra1965]

Next year is around the corner. You are correct about the Farm Bill (No conflict about Hemp)and Nasdaq will happen any time now. The Stock Price will be North of $20-$25 by the end of March after the FY2018 report and all these events will be nothing but past history that helped propel the SP forward.

I can wait 6 months and see how everything turned out (The Super Trends are V GOOD), How about you? That's exactly what I did 6 months ago.

Everybody with his own strategy....
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The biggest noise a company can make is achieving a FCF north of 30%. Period. Management have done a great job so far. And they will continue doing so.

If it's working, don't fix it.

Financial and operational performance is all I really care about. I guess it's easy for me since I have been a LONG for a while now.

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That's why one of the greatest advices given by the most famous investor of all time says ""Ignore The Noise"

1. Conduct a proper DD. If all looks good, then
2. Work on finding a fair price by means of a proper valuation method.
3. Invest and sit on it for a few years. Preferably for a LONG time in a fast money making stock.
4. If you are a trader.. Develop a strategy and trade part of it.

What do real investors look for ? To make money right !!

So we have CVSI making lots of FCF in its second profitable quarter (Very Early) and people are all confused about the company's past and current patent status. I mean, all you need is know how to read. All the information has been provided here..

We have a lot of smart people in this board making all kinds of DD on the class action issue and the OLD & SETTLED Mona case, coming all out with positive reviews and people are too lazy to do the same and still remain confused and can't identify a true winner in a brand new and rapidly growing industry.

I mean...What else could you ask for???? Like if you can make a real fortune in 3 months...

Well everybody has to decide on their own investment. I'm very clear of my strategy, trust the management team to do their job and let time take care of the rest.

Saturday, 09/29/18 09:21:36 PM
Fair price by forward earnings (1Yr) valuation method used for companies reporting earnings already gives me a FAIR PRICE = $21.8
Then add a premium of 20% (Conservative) = $26.16
Then a correction factor of 25% (Big) = $19.62 NOW
And I used $4.36 as the SP (The 50DSMA)

But this number depends of future performance or growth trend.

What most people don't know or understand is that earnings shoots up very quickly once you pass the break even point. Another number that I mention a lot in this board is Free Cash Flow or FCF. I honestly can´t see CVSI with less than 30% of FCF in a couple of quarters. A very high FCF, mainly produced by Net Profit, is important because this attract all kinds of institution and smart investors consolidating a strong base of shareholders. Another important thing about having a great FCF rate is financing if you ever need some. So I see CVSi as a very strong company in the near future.

Can anybody see the fact that the SP will always lag the fair price? Ask yourselves why?
The SP will always be undervalued for a while.