Time to Pause on Pazoo Inc (OTCMKTS:PZOO) After Recent Plunge

Pazoo Inc (OTCMKTS:PZOO) sentiments and prospects on Wall Street have turned from bad to worse as the stock’s underperformance continues to arouse concerns among investors. Having warned in our previous analysis that increasing debt holdings and revenue declines could hurt the stock’s long term prospects, nothing seems to have changed or improved. Pazoo Stock Price Analysis Pazoo has since dropped to new all-time lows as its prospects remain bleak even as the management team remains upbeat. In our view, it might be time to take a back a seat on the stock, waiting to see the outcome of recent developments that the company believes have the potential to reinvigorate growth. PZOO Daily ChartThe stock is currently trading in a $0.0004 - $0.0011 trading range, after plunging from a previous trading range of between $0.0011 and $0.0027. Trading volume in the stock has spiked even as the stock continues to languish near all-time lows.What Does Pazoo do in pursuit of growth and shareholder value?Pazoo bills itself as a health wellness company focused on the sale of nutritional foods, supplements and fitness apparel. The company also provides information services and online products for the enhancement of day to day living.In the recent past, the company has sought to expand its footprint into the legal cannabis space. Through an investment in MA & Associates LLC, the company plans to open a laboratory testing of cannabis. The lab is to provide best in the class testing of cannabis and cannabinoids, in a bid to protect consumers from impurities and contaminants.In addition, the company offers marketing and sales agent services for the distribution of non-controlled hemp products in states that have legalized medical and recreational use.Cannabis Testing Aspirations The management team is remaining optimistic about the company’s growth prospects on the cannabis testing aspirations. Significant strides have already been made, on the setting up of the laboratory.MA Analytics is currently putting final touches on policies and procedures ahead of the final inspection. The unit has already hired a general manager with extensive sales, marketing, and professional relation, tasked with the responsibility of working closely with customers once the lab is up and running.

“We are very pleased to announce that the lab is close to scheduling the State inspection, the last major step needed in order to finally be open and start generating revenue. We are excited to start the sales and marketing of the lab along with our general manager, said Pazoo's acting CEO Steve Basloe.

What NextThe opening of the lab would mark an important milestone as Pazoo looks to transition into a revenue-generating entityLate last year, Pazoo reached an agreement and consequently obtained the much-needed funding, for operating the proposed cannabis testing laboratory. Pursuant to the agreement, the company retained 30% interest in the lab. The transaction also led to the retiring of more than $1 million in debt, which constituted part of the purchase price.

“We are very pleased to finally secure and complete this deal which will enable us to get what we project is needed to open the lab in Las Vegas and be fully operational. In addition, we are conducting a nationwide search for a permanent CEO to help the business move forward to its revenue generating stage,” said Mr. Basloe.

Currently, Pazoo operates an independent medical marijuana testing laboratory. However, approval of the proposed cannabis testing laboratory will pave way for it to expand its footprint with a focus on recreational marijuana testing.Nevada is one of the states that has already legalized recreational use of marijuana, which means demand for such products can only continue rising going forward. That said, demand for laboratory testing of such products should also increase, from which Pazoo hopes to generate significant revenues, going forward.What Does the Future Hold for Pazoo?While there is no doubt about the endless opportunities for growth in medical and recreational marijuana market, Pazoo still lags behind in the push for market share. There are companies that have already taken a head start in the industry, be it on product development or testing.The company thus faces an uphill task to become a mainstream name in the space even as it continues to position itself on the laboratory testing front. There is no doubt that approval of the second laboratory will expand the company’s target market, in addition to expanding its footprint into a fast-growing industry.High debt levels and a lack of solid streams of revenues continues to hurt the stock’s sentiments among investors. The company now needs to ink deals with clients and grow its customer base to be able to generate significant revenues in the cannabis testing business.Until the company gets a green light to open its second laboratory, it may be time to take a back seat as the stock remains susceptible to further declines.We will be updating our subscribers as soon as we know more. For the latest updates on PZOO, sign up below!Disclosure: We have no position in PZOO and have not been compensated for this article.