PotNetwork Holdings Inc (OTCMKTS:POTN) has been pulling back in recent days, but caught a sharp bounce to close out the action last week. The bounce resurrected some bullish momentum well above the stock’s key major moving averages, which is potentially a bullish indication. That said, the correction that got started at the end of January followed what one might call “a parabolic advance”, with shares rising as much as 1,400% in five weeks. Truly resurrecting that kind of momentum may not possible without more consolidation, more time at rest, and new catalysts.
In the spirit of this last point, the company just announced that it was an exhibitor at “TPE 2018”. According to the release, TPE 2018 is “a leading event intended to enable enthusiasts and entrepreneurs to interact widely with industry counterparts and experts. Featuring informative keynote speeches and educational sessions on topics and issues impacting today’s tobacco, vape, and alternative industries, TPE 2018 presents the IGNITE | Sparking Innovation & Insight event.” We don’t know if anything major transpired for the company at the event, but the stock did rip higher following the company’s appearance and exhibition.
PotNetwork Holdings Inc (OTCMKTS:POTN) has two wholly owned subsidiaries, First Capital Venture, the makers of Diamond CBD OILS and Sunrise Auto Mall Inc.
Diamond CBD is focused on the advanced research and development of “the industry’s finest premium hemp extracts” and making them available to the global marketplace. The Company’s “notable team”, consisting of hemp industry pioneers and natural product experts, chemists, and scientists, is dedicated to producing “the finest and purest Cannabidiol (CBD) oil.”
POTN’s message continues: “Setting the Company ahead of its competitors, First Capital Ventures Inc and Diamond CBD Inc. deliver advanced product quality to market through the team’s creation of diverse and top quality hemp extracts that contain a broad profile of cannabinoids and other natural hemp derived molecules.
The result is a robust selection of Diamond CBD Oils, made from Industrial Hemp, which enhances the formula to be considered among the most powerful natural CBD E-Liquids on the market. Sunrise Auto Mall, Inc., launched in June of 2014, as an operation geared toward enabling people challenged with bad or no credit in securing quality transportation while simultaneously rebuilding the client’s credit.
POTN has developed a highly profitable business model around the continually rising subprime lending industry. Potnetwork Holdings Inc. acting as the holding company for the present subsidiary is planning to continue to expand from within as well as through future acquisitions.”
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As noted above, POTN shares are coming off the crescendo of a parabolic advance and are now working through a corrective phase. Current and prospective shareholders will be closely monitoring company communications to get a sense of what may represent the next driver for the stock.
In fact, a clue to that may have been contained in the mix in its latest press release: the company also discussed the status of its critical audit process. According to the release, finalization on the audit process continues. “We plan to complete our unaudited financials for 2017 and expect to have them posted early. We anticipate within the next couple weeks. We strive to do all within our control to keep our shareholders informed in a timely manner,” stated Richard Goulding, Chief Executive Officer, PotNetwork Holding Inc.
He concluded, “As per the audit, we understand it’s a lengthy process, and continue to patiently wait. We remain committed to promptly informing investors as soon as finalization completes.”
Currently trading at a market capitalization of $143.3M, POTN has about $576k in cash on the books (as of its latest reporting documentation), which compares quite favorably with about $30k in total current liabilities. The company has also pulled in about $4.4M in sales for the quarter ended September 30, 2017. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $POTN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $POTN, either long or short, and we have not been compensated for this article.