True loyal RFMK shareholders need and want absolute transparency and that includes positive or negative reports and filings from the company. I would think most investors interested in the RFMK story would know that up until recently this was a micro cap start up company struggling to find a way to become profitable and operate a successful business in the industry. I think its safe to assume that all start ups are likely going to have "dismal" financial numbers when they are still moving from development stage to operations. The months into the summer comprised the first time that RFMK actually obtained REAL inventory and had a REAL online merchant website to sell the product. Many pinkies do not even have a product yet or a sales outlet. The test market with the small inventory seemed to go well for the company, so here we are after the summer and along with the new massive funding management obtained for the company there are 20,000 units arriving in a few weeks or sooner. The upcoming inventory is worth about $1.5M retail value. The company has multiple dispensaries selling the product as well as GotVape and other online merchants so the real opportunity to begin making real revenue begins soon.
Stocks, especially speculative micro cap start up PK stocks do not trade on valuations dependent on revenues made or not made on previous quarters, the stocks trade on forward looking valuations, on the potential for revenues going forward. That is how the stock market works. However, if one would only like to seek valuations for RFMK based on previous sales and the current total worth of the company then it is quite easy to understand. First off P/E would be 1, liabilities at zero, revenues of $24k, assets of about $325k, inventory (soon) worth $1.5M along with another $50k this month and probably next month via the Ironridge deal. That is roughly a total company worth of about $2M/1.47B which equates to a PPS of about $0.0014. This also happens to be one tick away from the Ironridge cost basis for the first traunche of shares. Does anyone believe Ironridge would allow the PPS to drop below their own cost basis knowing they own 10% of the company? The current price is $0.0019 which is 1/2 of 1/10th of a cent premium of book value. I am not in the camp that thinks that the market has ANY illusions about RFMK intrinsic valuations. Based upon the current market share price, it seems that practically nobody is stretching the valuation too far for RFMK. Just my opinion. The real question I have for the haters is : what is the downside at this point????! Really, think about it for a second. If the market is dissapointed with an audited 10K filing with the SEC then where does the share price go? Is it going to go down by 50%? That would mean a PPS at $0.0009, back into triple zeros, which is under par value for the stock. I just happen to believe that with the current share price where it is, I have a hard time seeing how the haters would find ways to explain how there is still much downside possible in the RFMK stock. Frankly, I am rather fed up with the constant negative insinuations here and I would much like the haters to begin backing up their speculations with balanced and fair quantitative reasoning to support their suggestive innuendos.
THOUGHTS?
$RFMK
