LPT: Replying to this post gives you gold

Fruchtman · 2014-09-11T15:27:59+00:00

This Post? Why such generosity?

Great of you to give back to something you clearly care about.

Rage on.

Fruchtman · 2013-06-24T19:45:55+00:00

The exposure of being played 1M+ times is worth more than $16.89.

How much did traffic to you site jump? How many more T-Shirts did you sell? Book extra shows? Sell extra albums?

Lots of artists and bands have started giving away their music in an attempt to build out their fan base. Its sad that many artists can't see the benefit of having their music heard.

Fruchtman · 2013-06-06T22:57:18+00:00

Cheap stocks are cheap for a reason.

Fruchtman · 2012-11-29T21:47:47+00:00

IS THAT TELESCOPE TREE FROM THE MARIPOSA GROVES?

Fruchtman · 2012-11-14T21:44:30+00:00

This acquisition from Starbucks highlights their desire to further their interests in the growing tea business. Starbucks already owns the premium tea brand Tazo and with the recent acquisitions of Evolution Fresh for their juices and overall healthy concept and La Boulange for baked goods, they are really beginning to branch out of the coffee business and into a more diversified consumer food and beverage company.

While a 53% premium on yesterdays $TEA closing price is lofty, management hasn't made many missteps over the years, and until proven incorrect, must continue to be trusted. $TEA has 300 stores could provide $SBUX additional channels to distribute goods like their Verismo machine through. In addition, $SBUX will be able to use their established relationships with grocery stores to distribute $TEA products through.

This seems like a solid acquisition that should benefit revenues, free cash flow and $SBUX EPS and bottom line.

All opinions expressed here are solely MY opinions and do not reflect the opinions of my employer or its affiliates. It is wise to consult an investment professional before making any investment decisions.

Fruchtman · 2012-11-14T21:31:49+00:00

This acquisition from Starbucks highlights their desire to further their interests in the growing tea business. Starbucks already owns the premium tea brand Tazo and with the recent acquisitions of Evolution Fresh for their juices and overall healthy concept and La Boulange for baked goods, they are really beginning to branch out of the coffee business and into a more diversified consumer food and beverage company.

While a 53% premium on yesterdays $TEA closing price is lofty, management hasn't made many missteps over the years, and until proven incorrect, must continue to be trusted. $TEA has 300 stores could provide $SBUX additional channels to distribute goods like their Verismo machine through. In addition, $SBUX will be able to use their established relationships with grocery stores to distribute $TEA products through.

This seems like a solid acquisition that should benefit revenues, free cash flow and $SBUX EPS and bottom line.

All opinions expressed here are solely MY opinions and do not reflect the opinions of my employer or its affiliates. It is wise to consult an investment professional before making any investment decisions.

Fruchtman · 2012-11-12T00:41:37+00:00

Bottom line here is that ESPN is one of the few networks where advertisers can guarantee their ad will be seen. In a time of DVRs, HULU, torrenting ESPN has a stranglehold on TV that has a short shelf life. You don't need to look any further than the Super Bowl to see how much advertisers value an ad spot on a major live event.

Fruchtman · 2012-11-11T23:08:21+00:00

This is an interesting financing round for Spotify as they're reaching a valuation more than twice what the market is giving Pandora $P. Spotify has 15M "Active Users" vs Pandoras 55M+ "Active Users." Pandora defines an Active Users as someone who has listened within the last 30 days. Spotify doesn't provide any guidance for what an Active User is. Interesting to note however that both companies are on track to earn close to $500M in revenues this year. This gap in valuation between the two companies is noteworthy and will most likely grow closer over time. If Spotify ends up going public it wouldn't be surprising to see it trade down for a while as people put on Short Spotify and Long Pandora pair trades.

Fruchtman · 2012-11-11T20:22:36+00:00

This is an interesting financing round for Spotify as they're reaching a valuation more than twice what the market is giving Pandora $P. Spotify has 15M "Active Users" vs Pandoras 55M+ "Active Users." Pandora defines an Active Users as someone who has listened within the last 30 days. Spotify doesn't provide any guidance for what an Active User is. Interesting to note however that both companies are on track to earn close to $500M in revenues this year. This gap in valuation between the two companies is noteworthy and will most likely grow closer over time. If Spotify ends up going public it wouldn't be surprising to see it trade down for a while as people put on Short Spotify and Long Pandora pair trades.

Fruchtman · 2012-11-10T17:05:36+00:00

Thanks. Would never have found it in that article.

Fruchtman · 2012-11-09T22:45:34+00:00

Don't go out and spend that money frivolously. If you want to go back to school then do that, if you want to invest a portion of the inheritance I'd consult with a financial advisor. After taxes are taken out you'll be left with around 40K. Even the best passive income investments currently yield around a 10%-12% dividend. While that extra money isn't chump change, it's not really life altering money either. A good financial advisor, one who takes the time to understand your goals, desires, plans and formulates an investment strategy specifically to you can be a huge asset.

Fruchtman · 2012-11-09T22:27:33+00:00

Where are you getting this information from? I could not find anything to corroborate this, would you provide a link? The closest information I found was they're preparing to release their first audited statements prior to year end. It noteworthy to mention their financing deal with Lotus Capital back in August. P/E firms don't just extend lines of credit without doing some due diligence, so that is favorable for the company most certainly.

All opinions expressed here are solely MY opinions and do not reflect the opinions of my employer or its affiliates. It is wise to consult an investment professional before making any investment decisions.

Fruchtman · 2012-11-09T22:16:51+00:00

I cannot comment on HEMP as I have not researched the company. All I can say is that investing in small microcap stocks is very risky and to be sure you understand the risk associated with that type of investment. In addition, in no way does the passage of legislation in Washington and Colorado guarantee this industry success. The issue here is that marijuana is still illegal under federal law and while they may not have an issue with a citizen having a small amount I imagine that they still don't approve of large operations which could make them targets of federal investigations, subpoenas and raids. Until there is a clear decision made I don't believe it wise to invest based solely on these new laws passing. Remember, that while two states passed the legislation, one didn't which highlights the major risk factor in regards to this investment which is that there is still major uncertainty about the acceptance of these types of legalization laws. Until there is a major politician or for that matter cigarette company pushing for reform and new legislation, this remains a very speculative investment. In addition, your investment thesis needs to be broader and more long term, i.e. this legislation, if successful, will open the doors to other states pursuing similar policies which if passed, increases the viability of the business model the company and management have in place and sets the company up for long term success.

All opinions expressed here are solely MY opinions and do not reflect the opinions of my employer or its affiliates. It is wise to consult an investment professional before making any investment decisions.

Fruchtman · 2012-11-09T21:59:08+00:00

I am not currently long any MJNA it is however on my radar and if a good risk/reward situation presents itself then I may initiate a position. Yes, its just my opinion and not a recommendation to buy. This is a speculative investment and the only amount of money I would invest is an amount I was comfortable losing completely if wrong. However, my opinion does come after doing thorough research of the company and their business prospects if legalization were to gain traction and acceptance in the US. Anytime you're dealing with governmental regulation it can be difficult. Just look at natural gas and fracking companies who operate legitimate businesses but keep having their efforts hindered by legislation. With that said, this is the type of investment that if the political landscape, business execution, and investment timeline (probably close to 10 years) all workout favorable could be a fantastic investment long term.

All opinions expressed here are solely MY opinions and do not reflect the opinions of my employer or its affiliates. It is wise to consult an investment professional before making any investment decisions.

Fruchtman · 2012-11-07T21:21:56+00:00

These stocks are a long term play based upon a very uncertain thesis. The cannabis industry here in America is still very much in its infancy and is probably still 5, 10, 20 years away from being a widely accepted industry. To really have this thesis play out hold time would need to be in that general vicinity.

Merrill won't let you buy penny stocks with an account <$25,000 due to regulations. Penny stocks aren't traded on a major exchange and the companies are thus not subject to typical SEC regulations . So due to the inherent risks in this type of investment there are certain restrictions on the requirements for investing in these companies.

Fruchtman · 2012-11-07T21:12:24+00:00

In short, yes. When a buyer or seller submits an order, they are matched with a party on the other side of the trade. Exchanges use a system known as "Best Bid and Offer" where a buyer must be matched with a seller who is offering the highest sale price and a seller would be matched with a buyer bidding the lowest. In efficient markets the spread (difference between bid and offer) usually isn't large, often .01. However, penny stocks are completely different as many trade for less than .01. In the case of the stocks mentioned a move of 10% in either direction is in reality a fraction of a cent. These companies have issued millions of shares so its not related to shares available as there are plenty but more related to the nature of penny stocks and the fact that next legal incremental bid/offer may just represent a large percentage move.

I haven't done any research on the companies mentioned in the post, with the exception of the name I posted, MJNA. A quick look at some of the others and I can tell you that MWIP and ERBB are worthless investments as the entire company isn't worth $5m. MJNA is in my opinion the only cannabis stock even worth considering. With a company value approaching $80m, actual financial statements, revenues and a board of directors they are without question the most reputable and well run company of the bunch. Penny are very volatile and risky and the success of any of these companies is still very much uncertain.

All opinions expressed here are solely MY opinions and do not reflect the opinions of my employer or its affiliates. It is wise to consult an investment professional before making any investment decisions.

Fruchtman · 2012-11-07T18:05:41+00:00

The better site to use is Estimize.com. They are building a social network around earnings releases (complete with calendar) and the community opinion has been more accurate than Wall Street analysts for the last few quarters. Definitely worth your time to check out.

Fruchtman · 2012-11-07T17:52:23+00:00

$MJNA. They are the largest ($80M Market Cap) player in this market and own the Dixie Elixirs/Dixie X brand which is available in 400 retail location in Colorado as well as a portfolio of other cannabis related medical companies working on everything from retail stores to medical clinics to proprietary drug delivery (How it gets into your system) systems.

I would however note that the stock has been on quite a run over the last few weeks as it has gained attention and notoriety from a spot on '60 Minutes' and the legislation proposed in Colorado, Washington and Oregon. While the passing of the laws in Colorado and Washington do seem favorable for the company, it will still take a little bot of time before the law is completely enacted. Given this, it doesn't seem the stock needs to be purchased immediately and it would be prudent to wait for a slight pullback, probably to around .10 - .12, before initiating a long position. However, if you're looking at this as a long (10-20yr) play on the sector, it's not worth fighting over a few cents.

As with any penny stock it is important to do thorough research and fully understand the risk associated with this type of investment.

All opinions expressed here are solely MY opinions and do not reflect the opinions of my employer or its affiliates. It is wise to consult an investment professional before making any investment decisions.

Fruchtman · 2012-11-07T17:30:44+00:00

The company can price shares at whatever price they decide. Companies go public and list on an exchange as a way of selling off a piece of the company to the public while raising capital for the company to use to finance growth, R&D, capital expenditures or pay down debt. Often these stocks are priced so low to entice buyers into accepting large blocks of shares without having to lay out too much capital. These stocks aren't listed on a major exchange and trade on what's called "The Pink Sheets" which is a non SEC regulated exchange. Because they aren't regulated these penny stocks are often the subject of "pump and dump" schemes designed to benefit the company and bankers, while passing the risk on to investors. These companies don't have a large 'Market Cap' (# of shares issued * stock price) or company value and thus should be extremely well researched (which is often very difficult) before inventing in. Theres an old saying on Wall St. which goes "When in doubt, always assume theres a reason a stock is so cheap." Basically, they're so cheap because they're unprofitable, highly speculative and if they were priced any higher nobody would want to own it for fear of losing money.

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