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Jarrod Wesson
Published on
October 13, 2017
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Today, we are going to talk again about AMAZONAS FLORESTAL COM USD0.001 (OTCMKTS: AZFL), the hemp operator. Our readers will remember well our previous report called "AMAZONAS FLORESTAL COM USD0.001 (OTCMKTS:AZFL) Set To Fly Higher", wherein we noted that the market was expecting its first plantation results. We highlighted that they could make the share price jump higher.What's new?The company did not release its results, but something positive was communicated. AZFL is finally cleared to harvest the first 100 acre plantation. It was released on September 21, 2017 and we believe that the market took it as a good announcement.From $0.0023, the share price jumped to $0.0035 in only one day. For those who need a calculator, that's a 52% return. As it always happens in the market, those who did the hard work and followed the news were able to profit from the reaction of the market.Regarding the amount of shares exchanged, it was really considerable. More than half billion shares changed hands that day. Have a look at it: 1 month chart for AZFLFor those who are learning about the company in this article, Amazonas Florestal Ltd is a natural resources company based in Miami, Florida focused on "innovative, sustainable forest management, Industrial CBD Hemp and the certification and sales of carbon credits." More specifically, the most significant part of the company includes the operations in the Brazil Amazon, where the company owns large tracts of land. We believe that it is the most promising business of AZFL apart from the growing of CBD Hemp in Weld County, Colorado.Recent DevelopmentsThe most relevant announcement made recently was that the company would harvest the first 100 acre plantation in Colorado on Friday, September 22, 2017. If you did not really comprehend the share price reaction shown earlier, please listen to this. The company expects to receive the first plantation's revenues soon, thus any new information about when these revenues will be received is positive.Ricardo Cortez, Company Chairman, was quoted:

"Company management is pleased to announce that the first plantation has reached 100 percent of its growth potential and has been cleared for harvest tomorrow, Friday, September 22, 2017." Source

Additionally, we believe that the most significant words were those of Todd Ellison, Managing Partner at 303 Farms, Company Contractors in Colorado. He added that the company anticipates positive results, which may explain the share price rebound.What is the share price doing?In the last month, the share price declined from the highs achieved in September. We explained that the price increased as a result of several good news that were communicated in August and September:

  • A new 10.5 Acre Property in Weld County, Colorado, had been secured by AZFL.
  • The new quarterly report was released to the shareholders.
  • Amazon Hemp Ltd. was ready to commence operations at Fort Lupton in Weld County, Colorado.

Two months chart for AZFLWe believe that the share price will find a logical floor and a stock accumulation process may start. It seems that the share price decline stopped at the level of $0.0022.Since the company did not release any bad news that could create such a loss in value, thus it is logical to believe that the share price decline is just technical in nature.FinancialsWe had a look at the financial situation of the company. We appreciate that the net assets per share are positive. The following are the most significant accounts from the last annual report:

  • Property Plant and Equipment: $4 million
  • Total Assets: $ 4.6 million
  • Total Liabilities: $2.8

Additionally, the following is the share capital structure:Authorized Shares3,000,000,000a/o Sep 01, 2017Outstanding Shares2,999,721,184a/o Sep 01, 2017-RestrictedNot Available-UnrestrictedNot AvailableHeld at DTCNot AvailableFloat17,600,656a/o Jan 17, 2017Par Value0.001SourcePlease note that the float, which is the amount of shares owned by public, is quite reduced. This means that market orders could create large share price volatility. As there are market participants who like to play OTC stocks with a low float.ConclusionCurrently trading with a market cap of $6 million, AZFL is an exciting story among small caps. We appreciate that the company continues to release a lot of information about its hemp harvesting business and we continue to wait for its results. As we said in other articles, the positive results could create a large share price spike, thus be ready to assess new announcements. To sum up, this company is paying off to those doing their homework and following the news.Be sure to check out our coverage on AZFLWe will be updating our subscribers as soon as we know more. For the latest updates on AZFL, sign up below!Image courtesy of ChelseyPanda via FlickrDisclosure: We have no position in AZFL and have not been compensated for this article.

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