USMJ CEO Steven Rash Emphasizes Alan Greenspan Wisdom Regarding PPS Performance
North American Cannabis Holdings (USMJ) last week a filed a favorable quarterly financial report for the period ended March 31, 2016. Before I highlight the especially favorable aspects of the report, I want to start this presentation with some words I have made mention of before that come from Alan Greenspan.
Former Federal Reserve Chief, Alan Greenspan noted that “stock prices can deviate from ‘fundamentals.’” He said, “human propensity to swing between euphoria and fear, which, while heavily influenced by economic events, has a life of its own. In my experience, such episodes are often not mere forecasts of future business activity, but major causes of it.” I contend that it is largely fear and euphoria that is driving share prices in the cannabis sector and not fundamentals.
Stock Performance for the entire marijuana sector over the last year has been down. Optimism for a a new multi-billion dollar industry is fighting with fear, uncertainty in doubt (what I like to call ‘FUD’) within the collective conscious of all investors … and FUD’s got the upper hand at the moment.
We here are “all-in” on the marijuana gamble and confident a market wide trigger igniting the next marijuana sector rally is on the horizon. A number of pretty big marijuana industry news items have hit the news lately and I expect more such news to keep coming. It could be that next industry news item that lights the sector rally.
Here are some of the recent big news events:
Regardless of PPS performance, we plan to continue executing on our business plan here at North American Cannabis Holdings. We have no plans to execute a reverse split in an effort to see a higher PPS. We also have not stock buyback or any other shenanigans in the works in an attempt to artificially bolster PPS.
We are aware that some brokerage firms may have been assessed with an illiquid security fee by the National Securities Clearing Corporation (NSCC). The NSCC implements this policy when an elevated number of trades of a particularly security are not settled within 3 days following the trades. Excessive short selling could be the cause of such elevated settlement failures. Regulators and market facilitators like the NSCC are certainly more experienced than us and I’m sure their regulations and policies in combination with market sentiment will together sort out the trade failures. We’ll just keep plugging along in the meantime with our business plan.
Now for all the good news. The financial report speaks for itself. Our plugging along is gaining traction. The Company has reported sales and gross margin growth the last two quarters. The sales growth and margin improvements upon the operation acquired last June are a strong indication that North American Cannabis Holdings’ business plan has merit and promise.
The Company has reported $377,000 YTD sales through its third fiscal quarter. Revenue of $145,000 for the current quarter reflects an increase of 6% over revenue for the previous quarter and gross profit of $76,000 for the current quarter reflects an increase of 8% over the previous quarter. The Company is on track to realize over $500,000 in sales at the first anniversary of the AmeriCanna Cafe business launch.
The Company recently announced a $1 million investment to fund the opening of its flagship store and model for a national rollout. A second store is anticipated in Atlanta. The two new stores on top of the existing store in combination with the launch of the Company’s own Sports and Fitness Nutritional Supplement line of products all together stand to make the prospects for our second anniversary even more exciting that our first.