Trade Alert: Puration, Inc. (OTC - PURA - Spec Buy)

Investment and Company Research
Opportunity Research
TRADING ALERT
 

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PURATION, INC.

Rare Entry Point Opportunity for Savvy Investors
PURA Shares Could Triple in Coming Weeks

Rob Goldman
[email protected]

October 2, 2019
 

PURATION, INC. (OTC – PURA – $0.06)

New Price Target: $0.35 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 its product portfolio organically and through targeted acquisitions. The Company has spun off its cannabis cultivation segment to focus its efforts exclusively on its high-growth core CBD-infused beverage business. As part of the spin-off, the acquirer, NOUV, is set to provide a stock dividend to PURA shareholders in the near future.

 

KEY STATISTICS

 
Price as of 9/24/19 $0.06  
52 Wk High - Low $0.25 - $0.039  
Est. Shares Outstanding 632.4M  
Market Capitalization $40.1M  
Average Volume 6,092,179  
Exchange: OTCPK  
 

COMPANY INFORMATION

Puration, Inc.
14065 Proton Road
Farmers Branch TX 75244

Web:     www.PurationInc.com
Email:   [email protected]
Phone : 800.861.1350


 

The Bottom Line: In recent trading sessions, PURA’s stock has taken it on the chin, and undeservedly so, in our opinion, Savvy investors seeking huge returns from  a major bounce-back candidate should strongly consider current prices as an entry point to establish or build on their position. For a number of reasons, we believe PURA will trade three times higher or more in the coming weeks.

Our Take: Why is the stock down? This question is as old as equity trading itself. We do not purport to have all the answers. However, it has been our experience that oftentimes, certain prices serve as a hurdle for stocks and a catalyst for traders, those taking money off the table, and short sellers. PURA has been under steady pressure since reaching a recent high of $0.099 about ten days ago. That figure was reached shortly after our survey report which quickly turned into a doubling in share price. So, we had a quick rise followed by quick fall. Since we believe that the bulk of trading pressure is largely behind it, a combination of fundamental shifts and potential short covering should drive the stock much higher.

Final Survey Results on Their Way and…The data is great for PURA.—plus there is a surprise along with this release late next week.

Ass-Backwards: So, let me get this straight, sales are going to double, new markets are opening, other initiatives are in process and the stock is going down? Buy on rumor sell on news, huh? Fundamentally, PURA is in its best position ever, the valuation is compelling, and the CBD train is picking up steam. These situations rarely do not right themselves and seasonally, we foresee the bulk of big gains over the next 4-8 weeks.

Today, PURA Trades At a Ridiculous 5x Our Preliminary 2020 EBITDA Estimate. Our target is 30x. That is serious upside potential. 

Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 25 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.

Disclaimer

This Opportunity Research report was prepared for informational purposes only.

Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select format reflects the Firm’s internally generated stock ideas along with economic and stock market outlooks. Opportunity Research reports, updates and Microcap Hot Topics articles reflect sponsored (paid) research but can also include non-sponsored micro-cap research ideas that typically carry greater risks than those stocks covered in the Select Research category. It is important to note that while we may track performance separately, we utilize many of the same coverage criteria in determining coverage of all stocks in both research formats. Research reports on profiled stocks in the Opportunity Research format typically have a higher risk profile and may offer greater upside. Since 2018, Goldman Small Cap Research has compensated by the Company in the amount of $21,500 for research subscription services and a fairness opinion. GSCR was not compensated for this Trading Alert. All information contained in this report was provided by the Company via filings, press releases or its website, or through our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.

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