It is time to look at Pao Group Ord (OTCMKTS:PAOG) again, after a roller coaster move that saw it spike to record highs of $0.025 before plunging back to the sub $0.001 trading range. After a strong start to the New Year, it is becoming increasingly clear that short interest pressure is finally easing and that the stock could finally live up to our previous bullish thesis.
Pao Group remains well positioned to trade higher as it makes a transition to a revenue-generating entity. Over the past few months, the company has achieved significant milestones in pursuit of growth and shareholder value. In our view, these efforts are likely to act as a catalyst in strengthening investor confidence thus fuel an upward rally.
The share price is already showing signs of bottoming out given that it has been closing at higher lows, in recent weeks. The stock needs to close above the $0.01 mark to affirm the emerging bullish trend. On the downside, the stock remains susceptible to further declines given the underlying long-term bearish trend.
A close below the $0.005 mark could see the stock plunging to its 52-week low of $0.0034.
What Does Pao Group Do?
Pao Group bills itself as a physician practice management company focused on the proper use of cannabis to treat chronic and terminal illnesses. The company develops alternative medicine clinics for proper use of cannabis.
It also provides health education, lifestyle coaching and naturopathic medicine for successful achievement of personal wellness.
What Has Pao Group Been Up to?
In a bid to expedite growth in shareholder value, Pao Group has embarked on an ambitious plan as it seeks to streamline operations in its Alternative Medicine Centers of America. The company is in the process of acquiring and replacing existing affiliate locations as part of an effort that seeks to improve the quality of services delivered as well as overall profitability.
In addition, the Physicians practice management company intends to open new locations in Jacksonville and St. Augustine as part of the ongoing expansion drive.
“Jacksonville will open in early March, with St. Augustine to follow shortly thereafter. We are thrilled with the continued expansion of our brand, and services toward socially responsible profits, and overall success in our mission to provide communities and patients with the most effective solutions as an alternative measure to the pitfalls of opiate-based care,” said CEO Robert Weber.
Opioid Treatment Opportunity
Pao Group has also set its eyes on the Opioid menace that continues to send shockwaves across the U.S. Its Alternative Medicine Centers will launch an opiate addiction treatment in Florida as the company moves to pursue several revenue-generating streams.
The company’s subsidiary Rising Biosciences has already unveiled an effective alternative compound for opiate addiction, to be made available to indigent and insured patients at the clinics. Naloxone is the compound that the company intends to use to address opioid addiction menace and in the process generate some revenues.
Naloxone is designed to reverse opioid overdose. It is normally sold under the name Narcan and Evzio
Late last year, Pao Group received letters of intent from two applicants who are seeking to lease its buildings in Ohio for the setting up of Cannabis Dispensaries. The agreements are set to further strengthen the company’s revenue streams.
“We continue to grow the company with an assertive strategy designed to put the patients first,” states Will. “We have posted 3rd Quarter filings with OTC Markets and are very pleased with the continued success. This quarter saw close to $200,000 in revenues, and we expect a cumulative increase in revenues as we continue to expand our facilities and offerings.”
The third quarter marked yet another quarter of revenue growth considering that Pao Group generated revenues of $165,000 in the second quarter up from $5,000 reported in the first quarter.
What Next For Pao Group
Pao Group has achieved important milestones as it continues to execute its expansion plan. Quarter-over-quarter growth in revenues is a testament of accelerated growth that can only point to more shareholder value in future.
In contrast, the share price is yet to reflect the company’s achievements over the past few months. However, a spike in trading activity and the emergence of an uptrend underscores the fact that investors are starting to take note of the company’s growth prospects.
Investor confidence in the stock should receive a boost as Pao Group expands its footprint in the cannabis industry as it also pursues opportunities son the treatment of Opioid addictions.
As it stands, Pao Group has every reason to succeed in the market given that it has served catalysts that have the potential to ease negative sentiments on Wall Street. That said the dip in share price in our view presents an opportunity to buy a stock that appears undervalued.
Disclosure: We have no position in PAOG and have not been compensated for this article.