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EOF - Ecofibre Limited

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Ecofibre Limited and its Subsidiaries operate in the hemp industry in the United States and Australia. Ecofibre operates 3 key business lines through its Subsidiaries, namely:

Ananda Health: Production and sale of hemp related nutraceutical products focused on the US.
Ananda Food: Production and sale of hemp related food products in Australia.
Hemp Black: Development of innovative hemp related fibre products globally.

In the US, Ecofibre operates in the hemp-derived nutraceutical sector, targeting the health and well-being segment based on whole-plant cannabinoid extracts (Ananda Health).

In Australia, Ecofibre operates in the hemp-derived food products sector, supplying 100% Australian grown and processed hemp seed foods (Ananda Food).

Hemp Black is a pre-commercial business that aims to provide hemp-based inputs for innovative product applications across a range of consumer and industrial markets.

It is anticipated that EOF will list on the ASX on 29 March 2019.

https://www.ecofibre.com
 
With an IPO price of $1.00 EOF initially opened at $1.61 and had steadily risen to a recent high of $3.90 on decent volumes.

Volume has averaged about 350K but a day of 3,576K with some large orders trading during the 4pm close has seen the price pull back. I'm hoping this is just some consolidation before moving higher.

I own EOF and have chosen it in the December stock picking competition.
 
You chose the right stock, however your timing was off. EOF has suffered tremendously.

It's destined for success thought. Check the hotcopper forums, all the juice is in there. Can't fail with what's coming up.
 
EcoFibre came out of the blocks at IPO (@ $1.00) and basically tripled the money for early investors in the first 3 months. Since then it hasn't been so rosy.

Despite a NASDAQ admission late Oct, the Annuals in Nov were ho-hum and, importantly, in December a FDA Notice about companies (not EOF) selling products containing cannabidiols that violate Federal laws, put pressure on the price. From lofty heights, EOF has retraced to the low $2 range
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While EOF claims it is differentiated from other cannabis stocks, the entire 'sector' was a bit of a bubble; market reality has set in
https://www.abc.net.au/news/2020-03...-takes-hit-as-market-reality-sets-in/12012010
Key points:
  • The industry is experiencing a correction, with people who sought a quick profit from the pot boom now feeling the pinch
  • Some companies have lost 50 to 80 per cent of their stockmarket value in the past year
  • Insiders say the industry's major bottleneck is being able to turn an illegal recreational substance into a pharmaceutical-grade drug
 
You chose the right stock, however your timing was off. EOF has suffered tremendously.

It's destined for success thought. Check the hotcopper forums, all the juice is in there. Can't fail with what's coming up.
Nice pump, first time poster. ....as they chanted in concert "No way, F. Off"

 
Nice pump, first time poster. ....as they chanted in concert "No way, F. Off"



I'll address this first.

You'd have to be brain damaged to invest in a stock based off one short comment from a random, stating that it's destined for success and that it can't fail.

How in the world is that a 'pump'? Who am I influencing? One guy?

The point was to get him to look at the stuff posted on the HC forums, and make up his own mind, as anyone putting money into ANYTHING should be doing. That doesn't even need to be stated; it's a basic and obvious principle.

I'll move on to your other response now.
 
EcoFibre came out of the blocks at IPO (@ $1.00) and basically tripled the money for early investors in the first 3 months. Since then it hasn't been so rosy.

Despite a NASDAQ admission late Oct, the Annuals in Nov were ho-hum and, importantly, in December a FDA Notice about companies (not EOF) selling products containing cannabidiols that violate Federal laws, put pressure on the price. From lofty heights, EOF has retraced to the low $2 range
View attachment 101113


While EOF claims it is differentiated from other cannabis stocks, the entire 'sector' was a bit of a bubble; market reality has set in
https://www.abc.net.au/news/2020-03...-takes-hit-as-market-reality-sets-in/12012010
Key points:
  • The industry is experiencing a correction, with people who sought a quick profit from the pot boom now feeling the pinch
  • Some companies have lost 50 to 80 per cent of their stockmarket value in the past year
  • Insiders say the industry's major bottleneck is being able to turn an illegal recreational substance into a pharmaceutical-grade drug

The NASDAQ admission is irrelevant as its a pink stock. I can't even find EOFBF on my platform. Volume is almost non existent. Once it gets a proper listing, they will be required to report to the SEC, and Americans / others will be able to trade it with ease. The money should roll in then. This should coincide with the launch of Hemp Black.

The only thing released in November was the funeral meeting results/speeches. And a study. No financials. Furthermore, the financial results released have been very good. In the last release, the growth appeared to be low, but this was due to a switch to a distributor model, meaning that there was a delay in receivables, whereas previously, payment for orders was received rapidly. It helps to actually read the release, rather than skimming over figures.

The FDA notices related to medical claims made by said companies. Just like I can't claim that my concoction will cure your cancer. Some companies also sold contaminated product, or product with little to no actual CBD. Ecofibre are at the forefront of championing regulation. To prevent this very thing from being able to occuring.

EOF is definitely unique. It has a CBD business in the US which achieved market supremacy in the private pharmacy sector within a year. It is profitable and will be exporting to Australia this year. It has a food business in Australia, which will be exporting to the US, as well as becoming profitable, this year. Then we have the textiles/composites/ink/vegan leather/nanofilm, etc, business, Hemp Black. The plant will be ready for production in a few months time. They're hiring as we speak. The scope of this business is virtually limitless and it will be the new core moneymaker. Then we have the 300+ genetic varieties. We have active research being conducted at Thomas Jefferson University. Show me one other CBD company with these features. EOF is being dragged down with the sector, whilst being a superb performer.

And regarding that quote about the illegal recreational substance, that'll be MARIJUANA. Ecofibre is a HEMP company. Hemp is legal at the federal level. It is legal in Australia as well.

People are absolutely clueless about this company.

I look at patents, trademarks, bills of lading, job advertisements, hidden website parts, relationships to individuals and companies, etc etc.

I'll have you know that payment for a patent was received 4 days ago, and it will be live and official in about a month. That's the second approved patent.

So, if you think that I'm upramping the stock, I'd say that you're downramping it based on a lack of research and knowledge, especially due to the fact that you're quoting an article pertaining to Australia, when the core of the business is in the US. And that is irresponsible.

Either way, you can visit the forums that I suggested and get informed (I'm the main poster there), or you can remain ignorant. The choice is yours. And it doesn't affect me at all. I just wanted to elate that guy's worries since it went down so much recently.
 
EOF seems attractive to believers today. Quarterly out that tips loss H1 but break even full FY21.
Expenses relating to Hemp Black acquiring a textile manufacturer and lost business from pharmacies hit by Covid and riots seems to account for some of it. Long term stock for me so I have taken the opportunity to add - bid in for 2,000 more @ 1.81

All Data Daily
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Added 1,000 EOF today with a long term view. Expensive against current revenue/earnings, but high conviction buy for the future; will double up in the coming global crash. For the buy I redeployed my massive profit from sale today of 1,000 Electro Optic Systems (EOS) bought in April coming out of the CV19 crash, preen preen. Not convinced of a bottom from the chart, might have another leg down.
 
Ecofibre all data daily chart.
Slow like a cruise ship embarked on a long journey, not a jet ski.

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Beat the Covid March low today, not many stocks this bad price performance wise.
The loss in H2 (-5.5m) is tipped to be followed by a loss in H2 (-$1.5m). I will let the thing fully unwind and buy more at some point - will be a chart based hunch as the business progress is too hard to follow.

A few glimpses: the CEO is rumoured to have said that he expects the Hemp Black division to eventually be the company's biggest earner. They use it for various things - it's carbonized hemp - but they can make 'vegan leather' out of it, for instance - Oroton have a handbag coming out that uses it. It can be used in a textile that makes seat coverings for cars and planes. I think the fabric is cooler and anti--microbial. It was for this reason that they acquired a conventional textile manufacturer in the States. They have patents for Hemp Black, actual and pending, in collaboration with Thomas Jefferson Uni in the States.

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Found out after some searching that a huge number of insider shares are to be released from escrow within weeks (screenshot 1). So that now rules out buying until at least late April for me.

Also noticed from the Annual Report how unambitious the board was for the share price going by the performance shares allocated to various senior people. Vesting dates are from 2022-2024 yet the market price hurdles for vesting these free shares range from $1.50 through to $2.17 and it looks as though market share price is the only hurdle. So why have I been spending my money on them at a much higher price in early 2021?
M.D/CEO, Eric Wang's allotment of 'performance' shares, screenshot 2.

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Still accumulating, to my cost, down 40% now. Bought 2,000 more a few days ago @ 1.065, tacked on 2,000 today @ 0.955, then price went down to 0.93. Could be the huge amount of escowed shares that were released to quotation a few weeks ago; they might be starting to seep through. After a decent fy19 and strong fy20 they made a small loss in H1fy21 and expect a similar loss in H2. Covid19 interference with U.S pharmacy sales didn't help, also competition in price. They have a cash buffer.

Hemp foods (Ananda brand you see in s'marts)
Hemp Black (hemp char - mostly for textiles so far, own their own textile factory in U.S)
Hemp Health pharmaceuticals (Ananda brand, only sold in U.S pharmacies so far, trying for TGA S3 approval in Aust)

List of EOF funded research studies for Ananda Health CBD formulations

Screenshot_20210429-135623_OneDrive.jpg
 
Down another 14% Monday, guess those post escrowed shares are still being dumped and tolerance of holders is crumbling at a rate of knots. Nothing but an Fy21 loss on the horizon. Fleeced by insiders? Will follow the chart to its nadir - it's in an accelerating downtrend :)

All Data Weekly
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^^^ no, haven't added recently.

Highest volume day in EOF's short history (2 yrs) a couple of days ago, follow up has been quite good. Break of recent 2 weeks of downtrend. Too deflated, not calling it.

Daily
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