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As I said a few inconsistencies. Also poses a few contrasting views, which you and many more informed investors like yourself will no doubt address.
I thought his comments from an outside perspective were interesting. Furthermore your post highlights some key facts and figures which I think provides a helpful reminder of the financial health of the company.
Thank you for your input and corrections it is genuinely appreciated. I have high Hope's for Love Hemp, but at the same time trying to form a longer term mindset.
So after what he said, and given that you hold the stock and have done lots more research than your friend, do you still think it is useful to share his thoughts 'based on a glance and nothing more' ? For example when they said they don't think it will move to main market due to cost did you correct them and say "oh, they wanted to raise £5m to cover the cost of this and stated so in an RNS, but ended up raising £7m as it was over subscribed l, and then shortly after some investors invested another £2m"? Also , they didn't pick aquis because of cost, they picked it because it was a CBD stock and regulations have relaxed since 2019.
I welcome balanced posts but they need to have substance. A quick glance from anyone isn't going to teach anybody here anything useful. Because most have actually researched. "How big is CBD really?" Well its one of the most rapidly growing industries isn't it which is quite helpful for a young company.
Other than that the analysis is fair and realistic and highlights the obvious risks. It has its faults, such as not acknowledging an email from someone holding the same amount of stock as the chairman but I continue to hold with a realistic outlook for now.
So in order to get an unbiased view, I ran Love Hemp past a friend who works in the city. I thought it might be useful to share the opinion based on a glance and nothing more.
"Looks interesting. I don’t think it will main market list as the cost for them will be too high. They picked this exchange (Aquis) because listing cost is really low.
Main way to make money out of this is if their revenue skyrockets, which it looks like it is. At current valuation it seems reasonable. I have not done a deep dive in any way but it looks interesting enough. You would need to hold this for 1-2yrs to make some serious money. Could become worth 100-150m or so business if they do 50-75m in revenue. Can’t see it getting to much more than that as how big is the cbd market realistically?
It is a weird structure. Love hemp was bought by a holding company, so it was a reverse listing. Essentially like a SPAC. Other thing is cash is a bit tight. They will need to raise money.
For the cash they will keep tapping the equity market and issuing coverts which means you are getting diluted. But they have access to cash. Big risk on this will be if the market shuts, but that is very unlikely. Even covid only shut the market for a month or two.
Key risk for them is, if sales don’t grow, which then means they can’t raise cash."
Overall not too disparaging and generally a good reality check. Now obviously this could be a work of fiction so DYOR. This is is not financial advise merely an opinion. Equally based on a quick glance, so there may be a few inconsistencies there.
What I got from this is .... don't sit here hoping for a uplisting and a quick flip of shares for profit. Stay with it as a long hold and watch the company grow, but be prepared for a bumpy ride and further raises. We are hopefully in at the ground floor, but this is a very tricky market and you never know where the floor is.
It's one thing to believe in a company and its products, but this isn't a cult, it's an investment and as such we can't let ourselves get whipped into a frenzy. I was guilty of this initially as I'm a big UFC fan and lockdown had me craving some excitement.
Fundamentally, aside from the day to day ups and downs I think this is a solid long term prospect for me, but I remain diversified and equally focussed on building sensible positions in funds and more stable value investments and of course tangible assets.
I hope this slightly longer and more balanced post was useful?
just think when love hemp moves to main market or AIM, liquidity will be significantly higher and investing will be much easier to buy and sell.
this has double digits written all over it
Zak with his star charts and stock astrology @5:53 mins in
https://youtu.be/WWV6BzGzXPc
Wadogara Looked at my holding this morning...thought the same thing! I'm sure there will still be the odd sell to punctuate the day, but we do seem to be motoring now!
finally on its way now the warrants flushed through ?
It appears the sellers may still be around, however they don't seem to be quite a desperate as before...hopefully as we progress towards September we may find the buys outway the sells in a more meaningful manner.
Still cheap down here! I'm off to look at some dubious mining stocks in the interim.
I suspect many invested in Love Hemp will also be in CBX and ZOE so work away, the entire market should do well, demand will outstrip demand so there is room for all. I am shocked by how fast its rising this past few weeks, I thought it would take main market liquidity and then it would shoot up, Aquis is such a drag on the SP, didnt expect the MMs to be so short on shares. But its good news for us, I will be alot happier when we are back above the 3.5p mark :-)
HEMO clearly a malfunction, typically at this point we should blame the omniscient MMs.
I added a small tranche of 14.5 k units just now, couldn't resist, I know I could have bought cheaper a few days ago, but needed to see it going on the right direction first.
No major newsflow that I can find from Love Hemp group. I have noticed that CBX are now close to releasing a product line and they have added ingestibles to their range, so they are going to go head to head with LH at some point. Wont be releasing products until December mind. I like to keep an eye on the competition, not a cross ramp.
I have reported the problem to LSE, something is wrong with the color of the price, somehow its got stuck in blue, when for the past year its been known that it shall only ever be RED. Not sure whats going on, its like the twilight zone all of a sudden....
Every day this week I have spat my coffee out as the paper losses deplete rapidly here. I've gone from 1.5k in the hole to about £500 in the whole.... in 2 days.
I think we are like thundercats now...on the move!
We do seem to be headed north now after a period of sell down that felt like an eternity. If you wanted to add or get it, this may be a time to review your position. I'm considering one last top up.
very little free float - Main list in 4 weeks time, and no liquidity.... means one thing
Buyers and the market scrambling for stock when it lists
Warrants sellers finished, this should be nearer to 15p than 3p
On 5 trades.
There’s no stock, and each buy pushes this up.
Wait until this lists on The Main Market & liquidity improves, I wonder what price this will be at that point!!
Agree with that outlook Pokerchips, I noticed this part of the website a while ago.
https://lovehemp.com/pages/become-a-love-hemper
Revolution beauty and many other companies do the same thing, it seems influencers have just as much clout as mainstream celebrities nowadays...if not more.
In regard to offers, I think this is a good way to get more people to sign up and create accounts, which in turn increases the mailing list. Which may translate into more sales longer term and possibly impulse buys from reminders and promotions. I think once you start using CBD it becomes a lot like drinking coffee (but in reverse)
I think during the Autumn they may start more promotional work through the likes of TikTok and Instagram ...using their influencers with key numbers of followers and target audiences..
They seem to work by offering discounts on a regular basis...and I can imagine that "most" customers wait for the discount days or buy say £50 worth each time to get more of a % discount
The CBD Day they had a 50% for 24 hours ....which may have hampered sales for the rest of the week ...but..if promotions like that bring NEW customers ..then that that can be beneficial in the mid-long term as such customers make a repurchases
Morning all, yes great news about the 3rd party approval. Noticed I am slightly less of a bag holder today. As MJe mentioned think the sellers might be done....for now...
Fingers crossed for main market in September all to play for!
BTW pokerchips how are you positioned? Are you in yet or still monitoring the situation?
All the best!
I thought there would have been an announcement about this. It does seem newsworthy. Hopefully it is being saved up with other useful updates. I see, again, that we're having another stable (ish) day again today.
“ We are thrilled to have received BSCG Certified approval from the Banned Substances Control Group, a leading third-party certification & testing provider of dietary supplements & natural products. This is a worldwide industry standard which showcases the quality of our products.”
https://twitter.com/lovehempuk/status/1425849724192624642?s=21
https://www.bscg.org/certifiedcbd/
I didn't want to mention it in case I got peoples hope's up... maybe just maybe they are done.
Dont want a 'clever girl' moment and the warrant holders come from the bushes again...and catch us unaware.
I've added pretty heavily at these prices, so I'm happy to see a little rise before considering adding again.
At the risk of getting ahead of myself, it looks like the selling pressure has significantly cleared up this week. Far more stable and actually some green days. We can but hope (and then regret not taking more at these silly prices in a few months' time!).
In regards to director change I wonder if that is related to delays in market listing as arguably anyone looking to uplist a company would want to be setting more concrete deadlines. Speculation there, but might explain the immediacy in the statement.
Yes I had thought HE1 was rather safe for an exploration company as the sentiment was top notch. I only had a small holding, had considered buying more, but held off for drill results...thank goodness I did. Still like you, absolutely in shock over the pull back...far too oversold.
I only have about 3 shares now showing profit. Not ideal... oh well hold and hope! Risk vs reward!
I share your pain with HE1 - I first bought in January and regularly added since with no intention of selling in the short-term but seeing a large 5 figure sum wiped from your account is never nice.
Absolutely obstando, main market now...only thing to make me feel like less of a bag holder.
Always expect a bit of jam tomorrow... but time to get the berries to the presser on this one.
Having a bad day on my other stocks GILD and HE1 effing me in the A currently. I believe in this holding, so not going anywhere, just would be nice to see a reversal from here.
I see the sellers are back in force today. Must have been on annual leave yesterday.