https://youtu.be/WcnC7OAjgb0
Today I’m sharing insights in to Healthier Choice Managements, ticker Symbol HCMC’s, stock and movements you can leverage for profits. Plus insights into their recently released financial reports and an update on their lawsuit with Philip Morris.
You can see here that this Yahoo Finance stock chart shows a Beta of 107.34 indicating that this stock moves 107 times more than the average stock market does. Previously I released my first video on HCMC on July 10th.
Penny stocks overall are having a tough time this year. You can see this by looking at the small cap stock chart for the Russell 2000. The RUT rose from $1,096 on 3/30/2020 to a high of $2312 on March 31, 2021 and since then has been gradually drifting down. This is in a large part due to the Rona Roni, and the fear of inflation causing rising interest rates. And, growth stocks, especially penny stocks with expected profitability way out in the future are getting hit the hardest. Hitting penny stock valuations and stock prices.
Here is a tip for those of making short-term trades with HCMC. Look at this 10-day, 30-minute stock chart. You’ll notice that the chart shows after hours trading between the 2 narrow dotted lines, at the end of each day. It’s interesting to note that the stock pops up consistently after hours. Clearly day traders are taking advantage of these movements. Of course, there is no guarantee that this will continue.
HCMC recently released updated quarterly financials with some great insights about the company. The great news is Shown here on this simply WallSt graph, that HCMC has sufficient cash runway for more than 3 years based on its cash numbers of $29.4 Million. This is based on if the cash flow continues to grow a historic rate of 32.3% each year.
But first before we continue, I’d appreciate a like on this video, letting me know you’d like to see more updates on HCMC. And remember, this is not financial advice, and for entertainment only.
Just a quick reminder, if you are not familiar with HCMC. First, let’s take a quick look at HCMC and what they do.
Healthier Choices Management Corp, based in Hollywood, CA, provides e-liquids, vaporizers, and related products. The company operates through two segments, Vapor and Grocery. Its vaporizers are battery-powered products that enable users to inhale nicotine vapor. The company operates eight retail vape stores in the Southeastern U.S, including Ada’s Natural Market organic grocery store. HCMC also sells vitamins and supplements on its website, thevitaminstore.com and on Amazon.
Back to HCMC’s current financial report,
You can see that their income report showed a slight improvement from June of 2020 to June of 2021, and their gross profit had a better, positive improvement for the same quarter. Although their all-important cash flow raised from their own operations and their Free Cash flows are still negative, it is reduced compared to June of last year.
HCMC did indicate a hit to their sales due to the Rona Roni foot traffic in stores and the cost of goods. Net Vapor sales decreased to $1.2 million for the six months ending June 30, 2021, compared to $1.3 million for the same period in 2020
Net Grocery sales decreased to $5.6 million for the six months ended June 30, 2021, compared to $6.1 million for the same period in 2020.
Vapor cost of goods sold for the six months ended June 30, 2021 and 2020 were $$0.5 million and $$0.5 million, respectively, a decrease of $$0.1 million. The decrease is primarily due to a decreased in sales and product cost. Gross profit was $$0.7 million and $$0.8 million for the six months ended June 30, 2021 and 2020, respectively.
Grocery cost of goods sold for the six months ended June 30, 2021 and 2020 were $3.4 million and $3.7 million, respectively, a decrease of $0.3 million. Gross profit was $2.2 million and $2.3 million for the six months ending June 30, 2021 and 2020.
Total operating expenses decreased $0.4 million for the six months ending June 30, 2021 compared to June, 2020.
Regarding HCMC’s patent infringement lawsuit against Philip Morris, They previously submitted a proposed order that they want the judge to sign, and confirm that HCMC is granted to refile the Amended Complaint. This issue came up when HCMC’s attachment J I the previous filings caused issues. This means, that we will have a motion to move forward once this paperwork is signed and dated by the judge. We hope to see this signed and dated by the judge at some point over the next month, or possibly several months.
I always love hearing from you, so please let me know in the comments below, what your thoughts are about HCMC, or if there is anything I missed. I’d also love to hear about any other stocks that you are excited about right now.