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Posted On: 02/01/2023 7:24:17 AM
Post# of 75040
Re: vegasandre #72786
The increase in outstanding shares was all restricted shares. The strong revenue growth reported, especially if it continues on it's current trajectory, should allow them to pay down some of those notes and push the OS back down. In the end, no matter the exchange, only the fundamentals such as earnings per share, price to earnings ratio, etc. (which institutional investors are primarily concerned with) showing strong growth (to include net profits) will increase demand for RMHB stock.
Let's face it, we are early investors. There are some with nice piles of common shares, including members of the management team, but the way I see it is that by the time they can justify the cost of up-listing to a major exchange they will have more than enough positive cash flow to reduce the outstanding shares.
At that point, if they see major growth opportunity(s) on the horizon, it would be to their advantage to up-list and leverage their solid fundamentals to larger institutional investors who will not invest in OTC companies or even companies trading on large exchanges if they don't see at least sustained profits, but usually it's strong growth they want to see. Up-listing alone just won't cut it.
Once those fundamentals are "in the zone" and the big guys start buying up large blocks of stock, they can fund some serious expansion. Hopefully, a big part of what triggers that move will be the federal government getting their heads out of their asses and providing the proper clinical-based guidance for CBD infusion of foods and beverages and therefore ensuring that (at least at the federal level) those products are 100% legal when doses are within legal limits.
It's looking like RMHB will be in position to pour it on once that happens, and return on investment (investment being cost of financing) should occur much faster. That's the time to up-list. No point in doing it too soon, only to be kicked off the exchange when flippers knock your pps down below the minimum exchange requirement. Very easy for flippers to do that if the fundamentals aren't strong enough to lure in bigger institutional investment capital. Once that happens and the pps sees strong growth, you see the small time flippers leave the stock alone in favor of "thinner" trading, cheaper shares elsewhere.
Let's face it, we are early investors. There are some with nice piles of common shares, including members of the management team, but the way I see it is that by the time they can justify the cost of up-listing to a major exchange they will have more than enough positive cash flow to reduce the outstanding shares.
At that point, if they see major growth opportunity(s) on the horizon, it would be to their advantage to up-list and leverage their solid fundamentals to larger institutional investors who will not invest in OTC companies or even companies trading on large exchanges if they don't see at least sustained profits, but usually it's strong growth they want to see. Up-listing alone just won't cut it.
Once those fundamentals are "in the zone" and the big guys start buying up large blocks of stock, they can fund some serious expansion. Hopefully, a big part of what triggers that move will be the federal government getting their heads out of their asses and providing the proper clinical-based guidance for CBD infusion of foods and beverages and therefore ensuring that (at least at the federal level) those products are 100% legal when doses are within legal limits.
It's looking like RMHB will be in position to pour it on once that happens, and return on investment (investment being cost of financing) should occur much faster. That's the time to up-list. No point in doing it too soon, only to be kicked off the exchange when flippers knock your pps down below the minimum exchange requirement. Very easy for flippers to do that if the fundamentals aren't strong enough to lure in bigger institutional investment capital. Once that happens and the pps sees strong growth, you see the small time flippers leave the stock alone in favor of "thinner" trading, cheaper shares elsewhere.
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