Strong Financials,and Major Catalysts Ahead

Investment and Company Research
Opportunity Research
TRADING ALERT
 

Puration (OTC - PURA) is performing very well and upcoming events should drive the shares back towards its 52-week high.

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PURATION, INC.

Great Q, Major Catalysts and Strong Financials Ahead

Rob Goldman
rob@goldmanresearch.com

November 20, 2018
 

PURATION, INC. (OTC – PURA - 0.09)

Price Target: $0.25 Rating: Speculative Buy
   

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

Puration, Inc. is a leading Texas-based, CBD-infused beverage provider. The Company’s flagship product, EVERx, which was introduced in 2017, targets the sports nutrition market. Puration plans to introduce new beverages as well as grow it product portfolio organically as well as through targeted acquisitions. As of October 2018, the Company was set to spin off its cannabis cultivation segment to focus its efforts exclusively on its high-growth core CBD-infused beverage business.

 

KEY STATISTICS

 
Price as of 11/19/18
$0.09  
52 Wk High - Low $0.25 - $0.017
 
Est. Shares Outstanding* 537.4M  
Market Capitalization* $53M  
3 Mo Avg Vol 27,562,529
 
Exchange: OTCPK  
 

COMPANY INFORMATION

14065 Proton Road
Farmers Branch TX 75244
Web:     www.PurationInc.com
Email:   info@purationinc.com
Phone : 800.861.1350


Conclusion: PURA announced very strong 3Q18 results and the best is yet to come. As a result, we believe that current prices represent a terrific entry point for opportunistic investors. Moreover, we expect PURA could return to its 52-week high of $0.25 early next year.

The Numbers. Sales for the first nine months of the year were $868,300 as compared with roughly $168,000 for the same period in 2017. Importantly. PURA recorded operating income of $448,000. We expect future financial reports will be even stronger, because…

…products with new, upgraded packaging reaches stores next week. PURA’s new introduction is a new package form priced at a convenient $20 per 4-pack. Management believes that this new form will take sales to the next level.

Our forecasts are conservative. For 2019, we estimate sales will reach $3M, with operating profit of $800,000. It should be noted that these figures exclude any contributions from new products which are likely to be introduced in the coming weeks.

An under the radar near-term catalyst: PURA shareholders set to receive bonus. Nouveau Life Pharmaceuticals, (OTC - NOUV) formally declared a 1:5 stock dividend whereby NOUV common will be issued to PURA shareholders at a ratio of one NOUV common share for every five shares of PURA held on the yet to be determined date of record.  Although this event is not factored into the current stock price, we believe  these shares will rise ahead of the record date, when it is announced.

RECENT TRADING HISTORY FOR STWC

(Source: www.Stockta.com)

Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification

I, Robert Goldman, hereby certify that the view expressed in this research report or article, accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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