Surna: A Fresh Look At My Favorite Weed Stock
seekingalpha.com/article/...esh-look-at-my-favorite-weed-stock
Nach 99%- könnte so langsam 1 Rebound anstehen. ;-)))
Summary
Surna's stock continues to tank, now down 99% from its April 2014 high.
Despite its price moving decidedly down, the business fundamentals are looking decidedly up.
The latest numbers support my thesis that Surna is a promising pick-and-shovel business in the green rush of the legal marijuana industry that has improving fundamentals.
Much has changed at Surna (OTCQB:SRNA) since the publication of my last article, Surna: Why I'm Long This Hidden Gem. Most obviously, the stock price has continued its precipitous decline, down more than 50% since the article went live on March 30.
In addition to the company's long-awaited annual report, Surna has since filed its earnings report for the first quarter of 2015. We also saw early market feedback and results from beta testing of the company's new water-chilled reflector. The purpose of this article is to provide an update on Surna's latest financial results and recent news.
I recently had a chance to visit Surna's headquarters in Boulder, Colorado for the second time - this time as an analyst and shareholder - and meet with chief business officer David Traylor and chief financial officer Doug McKinnon. Though I will mention this visit a few times, I plan to dive into it further in a subsequent article with more Q&A.
The key to a successful marijuana growing operation - regardless of size - is controlling environmental conditions like temperature, humidity and light.
Surna is best known right now for its state-of-the-art equipment and systems that help growers create the ideal growing environment. The company currently specializes in commercial cannabis cultivation, though it could branch out (pun intended) in the future. Surna essentially modifies units produced by nationally known HVAC vendors with its own proprietary hardware so the units can be used for indoor agriculture climate control.
Considering the energy intensive nature of the controlled environment necessary for a successful growing operation, Surna's highly efficient systems have made them an industry favorite. But investors don't seem convinced.
It's worth noting that Surna filed both its annual report and subsequent quarterly earnings report late, something that I'm sure isn't helping the market view it as a legitimate opportunity. After asking Surna's management about this both over e-mail and in-person during my visit, I continue to think these delays are a byproduct of a company that's bursting at the seams and not a red flag for investors. I also gather that the company is being hyper-careful to "dot its I's and cross its T's" as a result of the increased scrutiny and skepticism with which the market views marijuana stocks.
Meanwhile, the marijuana industry continues to boom. With medical marijuana legal in 23 states and the District of Columbia, the market is brimming with businesses eager to grow, process or sell their share of the market. It is not, however, brimming with companies like Surna that produce the specialty equipment vital to the core of the industry - marijuana agriculture.
Simply put, Surna is a promising pick-and-shovel company in the red-hot marijuana industry. Its products save customers money and improve crop yield. Whether the savings are a grower's competitive advantage or merely what enables them to compete, the market needs what Surna offers.
Weed Stocks
The marijuana market is still in its infancy. Almost all of the publicly traded companies in the marijuana industry trade as penny stocks and the market is filled with risk. As a group, marijuana stocks have performed extremely poorly since the second quarter of 2014, when we saw a massive boom in investment and speculation in marijuana stocks. The chart below illustrates this boom perfectly, displaying the amount of money raised by marijuana companies through public or private financing and broken down by quarter.
seekingalpha.com/article/...esh-look-at-my-favorite-weed-stock
Nach 99%- könnte so langsam 1 Rebound anstehen. ;-)))
Summary
Surna's stock continues to tank, now down 99% from its April 2014 high.
Despite its price moving decidedly down, the business fundamentals are looking decidedly up.
The latest numbers support my thesis that Surna is a promising pick-and-shovel business in the green rush of the legal marijuana industry that has improving fundamentals.
Much has changed at Surna (OTCQB:SRNA) since the publication of my last article, Surna: Why I'm Long This Hidden Gem. Most obviously, the stock price has continued its precipitous decline, down more than 50% since the article went live on March 30.
In addition to the company's long-awaited annual report, Surna has since filed its earnings report for the first quarter of 2015. We also saw early market feedback and results from beta testing of the company's new water-chilled reflector. The purpose of this article is to provide an update on Surna's latest financial results and recent news.
I recently had a chance to visit Surna's headquarters in Boulder, Colorado for the second time - this time as an analyst and shareholder - and meet with chief business officer David Traylor and chief financial officer Doug McKinnon. Though I will mention this visit a few times, I plan to dive into it further in a subsequent article with more Q&A.
The key to a successful marijuana growing operation - regardless of size - is controlling environmental conditions like temperature, humidity and light.
Surna is best known right now for its state-of-the-art equipment and systems that help growers create the ideal growing environment. The company currently specializes in commercial cannabis cultivation, though it could branch out (pun intended) in the future. Surna essentially modifies units produced by nationally known HVAC vendors with its own proprietary hardware so the units can be used for indoor agriculture climate control.
Considering the energy intensive nature of the controlled environment necessary for a successful growing operation, Surna's highly efficient systems have made them an industry favorite. But investors don't seem convinced.
It's worth noting that Surna filed both its annual report and subsequent quarterly earnings report late, something that I'm sure isn't helping the market view it as a legitimate opportunity. After asking Surna's management about this both over e-mail and in-person during my visit, I continue to think these delays are a byproduct of a company that's bursting at the seams and not a red flag for investors. I also gather that the company is being hyper-careful to "dot its I's and cross its T's" as a result of the increased scrutiny and skepticism with which the market views marijuana stocks.
Meanwhile, the marijuana industry continues to boom. With medical marijuana legal in 23 states and the District of Columbia, the market is brimming with businesses eager to grow, process or sell their share of the market. It is not, however, brimming with companies like Surna that produce the specialty equipment vital to the core of the industry - marijuana agriculture.
Simply put, Surna is a promising pick-and-shovel company in the red-hot marijuana industry. Its products save customers money and improve crop yield. Whether the savings are a grower's competitive advantage or merely what enables them to compete, the market needs what Surna offers.
Weed Stocks
The marijuana market is still in its infancy. Almost all of the publicly traded companies in the marijuana industry trade as penny stocks and the market is filled with risk. As a group, marijuana stocks have performed extremely poorly since the second quarter of 2014, when we saw a massive boom in investment and speculation in marijuana stocks. The chart below illustrates this boom perfectly, displaying the amount of money raised by marijuana companies through public or private financing and broken down by quarter.
Mein MULTIBAGGER Favorit BOC ;-)))))
