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AMAZONAS FLORESTAL (OTCMKTS:AZFL) Recent Volume Surge Suggests Catalysts Ahead

AMAZONAS FLORESTAL (OTCMKTS:AZFL) Recent Volume Surge Suggests Catalysts Ahead
Written by
Jarrod Wesson
Published on
December 10, 2017
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Today, we need to talk once again about AMAZONAS FLORESTAL (OTCMKTS:AZFL), which is mainly focused on innovative, sustainable forest management, industrial CBD hemp, and the certification and sales of carbon credits.Our readers will remember well our previous coverage on the stock.In our last article on this name, which was called "AMAZONAS FLORESTAL COM USD0.001 (OTCMKTS:AZFL): An Opportunity To Buy The Dip", we said that the company was an interesting stock to follow, as it was finally cleared to harvest the first 100 acre plantation in Colorado. Additionally, we said that the float is reduced, so AZFL is a great stock for those looking for volatility.We are glad that we noted this name. The recent trading volume registered in the exchange shows that we were not wrong when we made our research. In our opinion, the fact that trading volume spiked up and hit 400 million shares in some sessions shows that market interest in the stock is rising. Have a look at it: 2 months chart for AZFLLet's revisit the business model of AZFL for those who are getting to know the company in this post. AZFL is a natural resources company headquartered in Miami, Florida, and was founded on December 18, 2008.The most exciting things among the company's activities include the Industrial Hemp cultivation and product development as well as the Certification of carbon credits for native rainforest projects. We believe that there will be outstanding growth in this sector in the future, which will help the company.Recent DevelopmentsThe following announcements seemed to excite the market. On October 11, 2017, the company released that it would finish the harvesting process for the first 100 acre plantation between the same week and the following one. This announcement should have excited some market participants, as they know that once the results of the harvesting process are out, the share price could spike up.Why is the company late in completing the harvesting?According to the company, the delay was due to "the inclement weather in the area that caused a major slowdown in these operations." It was also said that better weather conditions were expected for the completion of the process.Is the company ready to store the cannabis?Yes, the company's facilities at Fort Lupton are ready. The company counts with the storage and future lab/kitchen facilities needed. Everything seems quite good from here.But, we are not the only one expecting interesting results from AZFL.Directors at the company are also showing a very good tone. Read the following words of Ricardo Cortez, company Chairman for Amazonas Florestal Ltd.:

"We are looking forward with optimism to complete this process and continue with the second phase." Source

There is more.On November 15, 2017, the company provided more information about the harvesting process. It said that the first crop planted will return economic results, which will allow the company plant again in May 2018. This is quite good. It seems that the company has checked the harvesting process and concluded concluded that the results will be great. Well done.Ricardo Cortez, Company Chairman for Amazonas Florestal Ltd., was quoted as follows. Please note that he said that more positive reports can be expected:

"Our management is quite proud to announce these accomplishments. It is an exciting time for the company as we begin to see the fruition of these efforts. It has been a considerable amount of work and travel for all of our operatives both in Miami as here in the fields of Colorado. Our shareholders can expect to hear more positive reports coming soon as the extraction and distribution of these chemicals and products takes off as expected during the coming months." Source

Financials and FloatWe were glad to find once again in the last quarterly report that the company's financial situation is strong. Check the following numbers from the balance sheet and note that the net asset per share is positive.

  • Total Assets: $4,620,434
  • Total Current Liabilities: $3,079,938
  • Total Long Term Liabilities: $408,919

There is something else that some people may not know.If you don't do deep research on the company, you may not know that it owns large amount PP&E, which was acquired in 2014.We believe that these rural forest properties are the most interesting assets owned by the company.Have a look: PP&E from AMAZONAS FLORESTAL OTCMKTS:AZFLFor the readers interested in making some calculations with the amount of shares, the total amount of shares on September 30, 2017 is 233,882,935 shares.Additionally, we continue to find that the float is extremely reduced. Our readers interested in volatility games can continue to study the company.ConclusionCurrently trading with a market cap of $3.2 million, AZFL is an exciting story among small caps. In our opinion, the company will need to provide soon more precise numbers regarding the harvesting.The company said that it was profitable, but the market may be waiting for more financial figures. We encourage readers to be alert, as this information could make the share price spike up. We have seen these type of share price movements before.To sum up, we continue to see good catalysts on this name and there is also a lot to like.Be sure to check out our coverage on AZFL!We will be updating our subscribers as soon as we know more. For the latest updates on AZFL, sign up below!Image courtesy of Tara Jones via FlickrDisclosure: We have no position in AZFL and have not been compensated for this article.

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