New Price Target for PAOG

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COMPANY UPDATE
 

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PAO GROUP, INC.

Introducing Price Target for Emerging CBD Pharma

Rob Goldman
[email protected]

September 8, 2020
 

PAO GROUP, INC. (OTC – PAOG - $0.0036)

Industry: CBD Pharma 12 Mo. Price Target: $0.015
   

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

PAO Group, Inc. is an emerging cannabis and CBD company targeting growth via two tracks. The Company is in the early stages of developing a  cannabis extract-based therapy to treat various respiratory diseases and illnesses including COPD and COVID-19. PAOG also owns a growing cannabis cultivation operation focused on hemp cultivation.

 

KEY STATISTICS

 
Price as of 9/4/20 $0.0036  
52 Wk High - Low $0.0059- $0.0003  
Est. Shares Outstanding 1.28B  
Market Capitalization $4.6M  
30-Day Average Volume 67,755,588  
Exchange: OTCQB  
 

COMPANY INFORMATION

PAO Group, Inc.
1190 Cleveland Road
Suite B
Sandusky OH 44870

Web:     www.Paogroupinc.com
Email:   [email protected]
Phone : 888.272.6472


 

Conclusion: PAO Group currently trades above its 50-day and 200 day moving averages. This bullish status, along with its recently updated financials reporting, should prompt the shares to reach new levels. Moreover, a review of the financials lends us greater confidence in the Company’s R&D financing capabilities and the achievement of  key milestones. Thus, we have now introduced a 12-month target of $0.015, a nearly 5x return from current levels.

Future Developments: This emerging CBD Pharma company is set to evolve from a promising preclinical firm toward a Phase I development path entity. PAOG has multiple shots on goal as it seeks to treat two major respiratory diseases that each represent billions in potential market sizes.

Next steps include engaging a CRO to initiate the process for potential FDA approval of RespRx, its COPD treatment, representing an estimated $14.1B market by 2025. Plus, PAOG is preparing to commence a similar development pathway for COVID-19 via a CTAP (Coronavirus Treatment Acceleration Program) application. We expect this application to be fast-tracked, given that the use of CBDs to treat these diseases is novel and based on a natural (and likely safer) product.

Price Target/ Higher Valuation: By running concurrent development programs resulting in two IND filings within the next year, we believe that such events could support a $20M valuation, or  a $0.015 price target. This targeted valuation is in line with IND-filling stocks. Moreover, with no long term debt on the books, PAOG has significant funding flexibility to continue on its R&D paths.

RECENT TRADING HISTORY FOR PAO GROUP INC.

(Source: www.StockCharts.com)

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

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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. Goldman Small Cap Research was compensated the Company in the amount of $3500 for research report production and distribution, including a press release. Other companies mentioned in this report, including Puration, Inc. and Kali, Inc have compensated GSCR for research services. Since 2018, Puration has compensated GSCR $29,000 for research and other due diligence and fairness opinions. During 2019, GSCR was compensated $7000 by Kali, Inc. for research services. 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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