[quote=northparkbuyer]
Despite this revelation, I’m holding. Insane valuations are not uncommon for story stocks.[/quote]
The problem is this stock doesn’t have anything. If you’re a biotech with an insane valuation because you’re researching a drug that’s hopefully going to profitable you have your IPO cash sitting in the bank slowly being burned until you hopefully get approval. This company has less than $1 million in cash on it’s balance sheet. The reality is everybody wants to invest in marijuana and there aren’t any good investments right now and so people are jumping into this one without understanding what it is.
Is this company going to open a bunch of dispensaries and sell marijuana where it’s legal. I certainly don’t get that impression from the SEC filings and they don’t have any cash on hand to do it even if that was the goal.
Is this company going to grow marijuana and distribute it to dispensaries? Again they aren’t in that business now and have no cash to get into it.
Do they have some join ventures with other questionable partners to somehow make marijuana products (i.e. some kind of THC consumable without smoking it)? Are they going to sell hundreds of millions of shares of stock to investors at $0.03 to raise a few million dollars to pursue this. Yes, but those investors are likely to cash out the minute they can to unwitting fools that don’t understand what this company does. It’s going to have an f’ing market cap of over a billion dollars for a company that that has $5 million to do some r&d in coming up with the next weed brownie.
If the company had 400 million in the bank and was planning to open dispensaries all over the states as they legalize weed it might be a worthwhile investment. Or if it was going to start a major marijuana farm it might be an investment. But it’s not. It’s none of those things. It’s going to be a pump and dump that extracts money from people desperate to invest in the legalization of weed.
