Worth holding in?, page-3

Perhaps i'm biased as i just bought in at 18.5 but i would have thought SP3 looks very promising even without any of the potential blockbuster news about a large supply deal for a cannabis major, or to supply to all beaches along the WA coast.

Those are possibilities but the reason i bought in was that we are generating nearly $5M revenue p.a. now (if current growth rates continue, this number will obviously be a lot higher in CY2019). Our MC was around $8M fully diluted when i bought in with $2M cash, $1.5M inventory and a $0.5M R&D rebate to be accounted for in the next quarterly. Q4 is the biggest quarter of the year for SP3 typically which i presume is why they have their inventory levels running so far ahead of current sales. They still appear to be forecasting a pretty big production in Q4 adding to the already significant inventory. Another possibility is a requirement to instantly fill a big order if one of these potential blockbusters comes off. If the sales soak much of this inventory, we could even be CFP or at least on an accrual basis this quarter.

It looked like one persistent seller that took it down to these bargain basement levels however supply seems to have tapered off. Either because they have run out of shares, or because they aren't prepared to sell this low. Either way, it would appear that the upside is a lot greater on this company than the downside.