Yes, Q3 earnings report really in my opinion has always been the sole driver for the share price, not the euphoria over Prop 19. If passed, it would however instantly create another entry point for SFIO in a huge market eventually but that would be forward looking, not to mention many of the short term investors piled in just for the Prop 19 vote and are not interested in SFIO's true earnings potential into 2011.
I personally value the JV with CBIS and Prop 19 as minor factors in SFIO's earnings potential, at least in the short term (2011). SFIO investors should be caring a hell of a lot more about real earnings for Q3 from existing sales in international markets.
For the short term, all these pps swings based on marijuana concerns really mean nothing for SFIO. Personally I am looking to Nov 18 for EARNINGS and all I can say is if there isn't a report on earnings or if the earnings are pathetic Im pulling out but if I see revenue growth (which is likely) from the international sales as well as NASCO sales then I will be moving aggressively into this stock (watch out short sellers, I will make you feel pain, yes pain).
The pps 'should' not really be anything right now, it 'is' whatever price it is just based on bull vs bear flippers/traders but until we see real earnings we will not know market cap and hence book value (multiple will be whatever it will be based on interest in the name). Also, just fyi, these arguments about the JV with CBIS and CBIS market cap being whatever it is based on pps coupled with SFIO getting half of that is really unsound reasoning because CBIS will profit share based on only the sales coming from sale of SFIO products which depend on many factors including marketing and distribution channels, do not get caught up in CBIS market cap since that is just determined by the same euphoria surrounding the short term pot plays. Be in SFIO for the right reasons; in my opinion for the reason that SFIO will (hopefully) steadily increase market share in the e-cig industry and become a real revenue earner. GLTA
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