The Future of SGBY as of August 1st The true int
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The true intention of a publicly traded company like Signal Bay is to create a business of integrity and to increase shareholder value by capturing as much market share as possible. The cannabis industry is still in its infancy to a certain extent and the cannabis testing market if even more of a new industry. There are new cannabis testing markets opening up every year and some opportunities are in states that many would not consider to be a “hot bed” of cannabis activity. There are some that have argued that California is “the place you ought to be”, but that thought process is subjective and based on anecdotal evidence.
What’s the first thing you do when you invest in a stock on iHub? Your Due Diligence. Without extensive due diligence, you’re more likely to lose money than make money. Well guess what…WW has an even bigger, more monumental task and that’s to do the due diligence for the entire company. For the last year, I would say based on the resources and finances available, WW and his team have done a spectacular job piecing together a company of integrity with a strong foundation and a brand (EVIO Labs) that will only grow in name recognition over the coming years. I’d say his due diligence has been spot on, so when WW decides to go into another state, some might question it, but not me. His track record is spot on. But still, some have asked, “Why Massachusetts and not more locations in California? I’ll tell you why… MARKET SHARE. Follow me here…
We know that EVIO Labs, through acquisitions, new start-ups and increases in revenue at existing locations is fully capable of going into a state and capturing 30% of market share; they’ve done just that in Oregon. The state of Oregon is expected to reach $24M in cannabis testing revenue by 2020. That’s a minimum of $8M for EVIO Labs. Remember that number…
Now let’s move on to state number two…Massachusetts. It’s no California, granted, but the cannabis testing market in this state, as WW is very much aware is projected to reach $30M by 2020. EVIO Labs has proven its ability to capture 30% of market share. That’s 9M for EVIO. Now we’re up to $17M. Let’s keep going…
Florida looks to be a licensing agreement of sorts and the revenue generated will most likely come straight off the top as a monthly revenue stream and some might say, “Well that’s no good.” BS. It’s a great project to have in the mix. If it proves to be an inexpensive way to capture market share in states where that approach makes more sense, then more power to them. Remember, these same licensed locations become great acquisition targets down the road once a level of trust is built and when existing ownership sees the value of becoming a corporate entity. This could very well be a great approach in several states due to licensing restrictions, permitting, limited access, etc., but let’s get back to the main topic.
California is expected to reach $176M in testing revenue by 2020. A 30% market share is $52M. Now we’re up to $69M. And if you think this company’s not planning to operate in Colorado or Washington State or any other state that is attractive, you must be smoking…well something. The point of all of this is that EVIO Labs, through the strategic approach of establishing locations across the country and capturing market share in multiple states is building out a national footprint and going where the business happens to be. Why not another California location or two instead of MA and FL? MARKET SHARE.
Remember the “Spoke & Hub” approach that WW has often mentioned? Now imagine around 10 or 20 of those across the country all mushrooming out over the next few years. Market Share…
Now consider this…
High Times Magazine has projected 1.4B in cannabis testing revenue by 2021. 30% of that, folks…That’s where we are headed!
I’m sure your next question is, “Well where’s all the money coming from?”
In the very near future, there will only be around 20M shares of SGBY available to anyone who wants to buy them…check that…there will be around 8M shares; the rest will be in management/officer hands and without any preferred shares in the mix, they’re going to hold tight over the long term to avoid not maintaining majority ownership. EVIO Labs with Spoke and Hubs popping up all over the country and only 8M shares available. Are you kidding me? If you’re not loaded up prior to the conversion, you’re going to miss out bigtime. Why?
There’s a certain type of investor that will not touch penny stocks or anything under a dollar threshold, but these same people do know the value of finding great investments in the cannabis sector. They’ll soon have one in SGBY…and only 8M shares in the float. BOOM!!!
That group of new investors could number in the 100s or more. Combine that with the true longs that have been here since last year and the new investors that have come on recently as a result of the latest awareness campaign and that tiny number…8M will look extremely attractive very soon to those three subsets of people. That float will get locked up so fast, it’ll make your head spin! Scarcity is a beautiful thing, my friend…
So think about this… A stock in hyper growth mode with locations in multiple states, new locations coming on line frequently, capable of reaching $100M? $200M? $300M?
Who do you think will find this powerhouse of a company to be attractive? Investors, yes…of course, but more important, financial institutions will salivate over this business. We all know that they look more favorably upon stocks trading in dollars vs pennies and are more inclined to provide the financing necessary to pull off what’s going to be a monster of a business. It will happen...
If you think 30% market share is unrealistic on a national level, you haven’t spent enough time learning what WW and his team are all about. If anyone can pull it off, they can. So let’s go back to that High Times article…
1.4B in testing revenue by 2021. What’s 30% of that? I’m not going to even do the math on that one; you can do it yourself to see where this is headed. It’s massive!! With substantial financial support, it’s also very doable.
http://hightimes.com/business/marijuanas-next...b-testing/
Signal Bay Inc. (SGBY) Stock Research Links
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My comments are only my opinion and are not to be used for investment advice.
Please conduct your own due diligence before choosing to buy or sell any stock.