A business that consistently changes its business to whatever is trending is bound to cause a stir. Most likely not a good stir. POTN stock is one of the most ridiculed stocks out there at present because of this.
It's hard to trust something that keeps changing, no?
POTN Stock: Should You Beware?
POTN stock has been up and down like a yo-yo in January. At the time of writing, shares are selling for $0.10 USD, down -3.58%, though some analysts believe these stocks are heading towards zero.
One of the reasons PotNetwork Holding Inc. (OTC:POTN) draws so much skepticism is the fact that this business has previously been known as... nine other businesses! Other ventures include SND Auto Group Inc., MyMedicalCD, and Interactive Solutions Corp., to name just a handful. Behavior such as this is a big red flag to investors.
The business tends to adapt to whatever is hot or trending at present. Enter PotNetwork Holding, just as cannabis becomes the fastest growing industry in the US.
Now
The Florida-based company now says it is involved in the research, development, and sale of hemp-derived CBD products.
You can understand why investors scratch their heads over this one. Without committing to one definite product or area, how can this company really sustain itself (let alone draw in profits)? Well, it's hard to know if it actually is.
According to Investor Daily POTN's revenue history is also hard to make sense of:
"The company has a bizarre revenue history. It claims to have generated revenue of $5.5 million in 2015, $1 million in 2016, $14.5 million in 2017, and $22.4 million over the past 12 months. The company claims to have generated a total net income of $2.2 million from 2015-2017."
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Further investigation shows some more funny numbers:
"Let’s suppose the company has actually generated $22.4 million in revenue over the past year [...] the fact that its market cap is about $62 million means it’s trading at 2.6 times revenue. That’s one of the lowest relative valuations we’ve ever seen for any penny marijuana stock."
So without definitively knowing where POTN stock is going or where the revenue behind it has come from, there are enough red flags here to start a street party. Very few things are sure in the stocks market; one thing that is, however, is the importance of doing your own research. Do you trust PotNetwork Holding?
Featured Image: LinkedIn
