I've only been skimmming around intermittently today so far. I can't read start to finish like you guys without getting a headache and getting real sleepy. But they did touch on Emerald's questions, which are good questions, and I really like that.
I don't think there is any reason why anyone should sell at this point. The verdict is in, and we are indeed slightly below a p/s of 1 for the fiscal year ended 3 months ago. I don't understand the Vincente Fox answer either. But I like the fact that he is still there and he is still going to be onboarded. That's the plan on the record, and that's a lot better than being MIA. That was like a lost child calling in to say, I'm alive. Thank goodness! That doesn't mean punishment isn't coming for making everybody worry unnecessarily, but what a relief.
They did breakout Americanex in the 10k, and they had zero revenues to contribue. I don't understand that. It was closed on in September, but zero revenues for the close of December 2019. Huh? I'm dumbfounded. So, then what did they buy for so many shares? And then on skin on the conference call, Zac said something about it opening up on April 1. I'll assume for now that Canalytics (sp) is has its tentacles in there too. And I'll assume revenue is coming.
We are indeed getting close to that roundoff number of 100M shares. I think 93M or so, which is a little more as we speak. Just stop making big acquisitiosn, please.
What real interesting to me is PHUN also reported a 10K also today. That's the SPAC on the Nasdaq, which went from 500 a share to currently 67 cents. They lost like 38% revenue and are down to 19M. From 30M down to 19M. We are now at up and at 16M with NO help from Americanex, and closing in fast. Only a 4M gap now between those two, which was must greater a year ago. They lose 12M for the year whereas we lost less than 10M. They are now priced at around $25M in after-hours trading, and we are trading at around $14M. PHUN has been around a lot longer than us, and yet I think we are looking better on a fundamental basis. Their gross margins for the year are about the same as ours in our 4th quarter. PHUN is another industry, granted. And there are some great deals out there, so that will also hurt our price on a comparison basis.
But, I wouldn't say this price is bad right now. And on a skim, I think the transcript said CRON. Is that a typo? I think they meant KERN, but I have to actually listen to that. And that really is a good comparison, and they are falling too. I like what we have better on a skim. KERN also released very interesting PR last Friday:
They state their seed-to-sale whatever software is soaring in this CV19 crisis in the last few weeks. Specifically:
Total cannabis sales: Up 35% Medical cannabis sales: Up 57% Recreational cannabis sales: Up 26% Flower sales: Up 35% Vape sales: Up 66% Edible sales: Up 43%
There's no reason to believe ours would not be up as well. Same industry. And we just partnered with some ILOVEHEART whatever that's focused on Edibles amongst other things. We are a Seed-to-Sale software player too. That partnership came in January if memory serves correct.
I'm definitely sticking around and happy with these lower prices. I want to see how it all unfolds. If it drops to 7 cents, I can afford to buy 20,000 for what I bought 10,000 for. I think this is a good price though.
The whole industry is clobbered. And now all industries are clobbered. So valuations are a lot about comparisons too. We are comparing thinngs to an overvalued industry before which was more overvalued than the bubble that burst. And we don't know how bad things can get, but I don't think things will get worse for HLIX. They are pretty sheltered from this CV19 crisis if you ask me. Compared to most people.
I don't think I picked up what, if any, revenues canalystics was contribuing on a skim. But I do like the idea of it a lot.
I also don't think anyone selling down here intentionally has a lot to gain. Those Amercanex guys are burned with us, so they need to perform. Not sure what they are contributing yet, but I'm seeing frmo them.
Oh, there is some nasty stuff in there too. If I recall, int he subsequent events, somebody from Florida is sueing HLIX, claiming they own 10% of Amercanex, which is referred to as Green something in the 10k. But it is an adventure. Will be interesting to see how the cards fall. Steve Janjic can suffer and rightly so if that case has merit.
As for any insiders that might have sold high for greed, Karma has a way of always settlign the score. That money, wherever it went, went into an investment somewhere that got stonewalled in the CV19 situation that nobody is immune to. And rightly so.
We are also at a great price to be bought by a bigger fish somewhere in the future if we can't make it on our won. We have some great things to offer, and this is a discount to being bought out if you ask me. There is a lot of Goodwill on our balance sheet, which is really expensive things we paid for. And you look at Amercanex, and you say, what did buy for 25M shares or whatnot? I'm going to give them a year to show me what they bought there.
P/S of less than one, in all this, I think that's good. Compared to PHUN and KERN, I think that's good. At least they didn't have to shut stores down like my beloved NROM, which is still the better value if you ask me. But getting sucker punched by CV19, unlike HLIX.
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