InvestorsHub Logo

daiello

06/14/21 9:55 PM

#14033 RE: Bri798 #14032

You either believe the company is moving and making great strides or you don't.

I don't put all my eggs in one basket, so taking profits on things that are currently moving in the right direction and putting them into plays that aren't moving in the right direction is a strategy I often deploy.

There is no other OTC company you can compare to KAVL. It is undervalued compared to every single one I've looked at.

SB_EV just did a small R/S and is valued at $261M. It's down roughly 50% from pre-split due to a round of funding as soon as they landed on AMEX (bad timing in my opinion), so it was valued closer to $520M a week ago. They generated $2.4M in revenue for Q1 2021, and a $4.5M loss.

How is KAVL, who generated 15x the revenue in Q1, and turned a net profit, trading at the same valuation (and a week ago 50% lower) then this example?

The interest is just not here from penny stock players as seen by the daily volume and as seen by company PRs being met with almost no volume. It's sad really, but when I see this, I buy more.

HR_BR is a good example of a play being undervalued for long periods of time. It took the investing world 3 months before they realized the financial valuation of the company. That whole 3 months many of us who read the filings were loading up. Today, 7ish months later it sits up 1200% from my entry.

KAVL is a year old. They started out very hot! Out of no where they generated twenty something million in revenue. The next quarter they grew about 45%. Q4 they only generated $12M or so due to repackaging of their product to be overly acceptable for the FDA. Q1 2021 they were right back at it generating $37M in revenue.

Around the end of Q1 we heard about multiple new distributors, some major, some minor, we know about the new product and we also know they are going to start distributing internationally. We also know of another major distributor we signed up very recently which won't be seen in the financials until next Q and future Qs if all goes well. Management anticipates $400M in revenues for the year which is 4x from last year (technically the last 12months).

It's a shame people can't see the positive from this. Rome wasn't built in a day is a great quote that fits well with KAVL, because you can very clearly see the formation of a bigger company, but you need the patience to stick around and see it come together. A lot of folks don't have that patience, because OTC stocks mean instant gains and holding a few weeks or months is just way too long to tie up your money.

The company has cash in the bank, their only liabilities are accounts payment so no debt, they have a positive cash flow and positive stock holder equity and they are growing. If you see another OTC company that checks off all those boxes please let me know because I will hold these companies as long as I need for them to payoff.