Greetings #WOLFPACK and everyone who will join our ranks!!! As I have stated many times to my followers & even detractors it is my contention that 90% of the medical marijuana sector is one giant game of Frogger. Get in, get out, make money, take money, and let someone else chase a unicorn. It's that simple in my large wolf mind, but every so often you get companies that can find their niche. Tranzbyte (OTCPK:ERBB) in my mind is one of them.
I know what you're going to say: "Wolf aren't you forgetting Medbox (MDBX), they have a weed vending machine!" Do they? I've never seen one in a dispensary in Colorado. Oh wait, I know why, they are NOT in Colorado! This isn't breaking news, but I would think that a company as "mainstream" as MDBX would have been there before the 1st of the year. Sorry folks no dice, but its not entirely bad for MDBX as they are awesome at putting our PR's. That's not a knock, they are awesome at marketing themselves on TV and even have a Fox News grasp of facts. I say BRAVO!!!
When I asked Stephen how he felt about beating the company (that shall not be named again) to the biggest market currently in the US he was very respectful & gracious. He said (and I'll paraphrase) "I loves it! They got to the party early and thought they stole all the rope." Indeed Sir, Indeed, seems they have enough rope to hang themselves along with some to spare for the poor suckers that bought between today and $93.
Long Story short Erbb is the 1st company of its kind in Colorado. If that doesn't tickle you maybe the fact that in the 1st month of legalization in the state estimates are that $109,000,000 was generated from the industry.
One of the biggest questions I got asked to to ask by the #WOLFPACK is when will Tranzbyte put the machine on display? Let me begin by saying that Tranzbyte is still Beta testing the machine they placed in Herbal Elements flagship location in Colorado. Beta testing should last 2-3 weeks unless it uncovers a larger, unforeseen issue. With regards to the picture Stephen says: "For the purposes of competitive protection the first official pic will be as it leaves VDW in all probability. Not to mention, as you must know, even IF I could show a pic, it would then lead to 1000 whys, what fors and what have you about how it should look or why it's the same as something else. It's somewhat faith based, but we're not asking for you to believe in a burning bush. From me personally, to the company, and on to Legal Age, VDW and Herbal Elements (not including the company that will be handling machine maintenance and several other ancillary businesses) it would be a very tall order to get everyone to collude on a farce. When it ships, we'll all get to see it."
This does not faze me in the slightest and while you may disagree, there is an inherent risk of "putting the cart before the horse" so to speak. I for one have to take it for what it is; a wise choice. Take the iPhone 6 for example, we all know it is being developed yet we haven't seen it. Why? Because it's not ready. I want it to be top notch, no bugs, and ready to roll son!
As a Wolf I was interested in how long it would take to actually manufacture a machine to meet the lofty demand that they've set at Tranzbyte. In case you missed it, the goal is to have 1000 machines placed by the end of the year. That's a sh**load of machines. How difficult is it to produce these machines? What sort of time table are they working with?
The short answer is 20-30 a week. That may sound like a lot but the shells are actually the easy part. Software being put in is a bit more tedious for the reason that every state might have different hipaa regulations or every dispensary has different/unique products to upload. Think that putting a menu into a computer system is easy? Think again or ask any restaurant owner putting the items on their menu into a POS system; it sucks, trust me. Once hardware is not an issue multiples of 10 will always be on hand. Once software is ironed out, it's no issue and the machines are "designed to be updated via the cloud."
Something I'm sure you want to know is that "orders have already been coming in for these machines."
Payment methods on these machines will be Credit Cards (merchant accounts looming, hardware included, not functional at roll-out pending bank authorization) debit, cash, Bitcoins and stored value.
Bitcoins was interesting because to my knowledge they are worth more than an eighth of ERBB (Pardon the Pun)
"As for BTC, you'll need to understand how it works better, but change is not made in BTC, you only pay what you need to pay. The purchase is pegged against current market value (for the next 15 minutes after purchase) and it pays cash to the vendor (ERBB in this case). The BTC market is about disruption or status quo, less government oversight and decentralized banking, all things that we agree with, that bring people from a intellectual community that is not radically disparate from our own, and in fact a number of shareholders reach out daily with questions not about seeing a picture (shocker, right?) but about other ways we might be utilizing BTC utility."
(If I need to explain the rest of the methods of pay please ask the person closest to you to punch you in the face.)
Q:Will there be a smartphone app to expedite the checkout?
A: Advanced orders, purchases, order tracking and more - all via mobile. No question.
When I asked the question about what will go into the Zazzz machine and how will it generate revenue I was surprised by the answer, but only because I found it to be such a smart one. First let me tell you that these machines are going to be more than just a machine you get Sour Diesel from. They will be facilitators of marketing, advertising and sales. The truth is that there is no simple answer. Obviously you will have marijuana in them that is most likely unique to the dispensary, but you will also have another potential profit channel. Let's say you go into a dispensary and its 3 people deep on the line, let's say you love Blue Berry WolfNuts, but don't want to wait. You walk over to the machine and you buy it (maybe you use your ERBB smartphone app on your iPhone 6). You go home, you eat 10 little bags of fritos and pass out.
It simplifies your purchase, but Tranzbyte can't really directly profit from it off the bat because if they cut too much into the profit of the person running the dispensary then he/she won't want the Zazzz machine in the store in the first place. Tranzbyte has to offset this by creating higher foot traffic with advertising. Stephen brings up the fact that in the state of Colorado advertising/marketing isn't necessarily needed at the moment as it's everywhere. Eventually this will flatten out and going forward in other states for example there is the capability to drive foot traffic into dispensaries with product. The example he gave was "Chebba Chews." Tranzbyte could theoretically direct foot traffic to certain dispensaries making the arrangement mutually beneficial to the dispensary and "Chebba Chews." FYI margins are different for items such as these (I believe 30-40%).
As you can see if you have an IQ higher than Forrest Gump there is added value there. Instead of making a few bucks per ⅛ of Blue Berry Wolfnuts, Tranzbyte will trade that 5-10% rip for the first three months (if needed) to demonstrate to the owner an increase in sales as a result of that particular machine being placed in that dispensary." At that point as Stephen says his job will be to "micro manage the amount of traffic and ROI (return on Investment) on that media that's insuring that they are getting enough increase in sales to justify paying them a couple of dollars against something that they could take full profit for sby just selling it over the counter.
(There will be a charge on some items that will be the dispensarie's "flowering product" that they handle and put into the machine themselves.)
Something exciting is that there will also be Tranzbytes own proprietary items being put into the machine that will begin to pick up speed by Q2. The reason it won't happen immediately is that they have some receipes from some people that "EVERYONE" will know. Tranzbyte will be producing their strain under secrecy claus locally from seed because they can't cross state lines. From here they will take the extract and convert it into an edible. Its a 3 month process for production, state regulations, etc. What I hear from people that have sampled it is that it's the bomb. Its a "proprietary strain of Sativa out of Ecuador in case your wolf noses weren't yet wet.
-Let's talk profit margins now-
When I asked Stephen about what sort of profit margins Erbb would be looking at per machine his answer was: "Obviously empirical data is the best otherwise everything is a Silicon Valley hockey stick. But I can tell you that even with 30% use on 100 machines we turn from red to black in 6-9 months. There will be a lot of media and adoption leading up to that, but that doesn't include a variety of other revenue generators related to the machine but not part of its balance sheet."
-Some straight questions and straight answers-
Q: Without naming names, is Tranzbyte in discussions with other publicly traded companies in the #MMJ sector that will market Tranzbyte products independently?
Q: Is Tranzbyte seriously considering a Reverse Split?
A: Yes, but it's not at the forefront of the day.
-When we got more in-depth with this question I said naturally that I felt there were too many shares out there. Stephen cited the share structure of Sirius Satellite Radio (NASDAQ:SIRI). This gave me pause...
Q: Has Finra reached out to Tranzbyte?
A: NO NO NO (I added the last 2 No's)
Q: Has there been any follow up with @TheStreet, Jim Cramer or other media outlets?
A: I'm in regular contact with media. Some known, some more obscure. But you're probably aware of my media background. The PR/media going forward will be significantly different than anything in the past. (Check Stephens Resume) & (Also Check Jim Cramers Tweet on ERBB recently #Beastmode)
Q: Is the technology being used for the Zazzz Machines exclusive to Tranzbyte or does a company like Medbox also have access to it? Does Tranzbyte own any patents on tech?
A: No patents filed but using some patented materials in a unique way. First and best to market at this point. Not discounting patents but they tend to be more relevant to the 20th century. Others could do it and probably will.
Q: Are you actively trying to get into the state of Washington?
A: Yes, we have advocates in there and are looking at how to work in there. Its the most logical place to go as they open up recreational dispensaries.
Q: Is Sierra World Equity Complete Bullsh*t?
A: Yes, we have never talked to them or done any of the things they say we have done in the state of Washington. Never talked to them.
Still with me? I hope so because I saved the best for last.
Last week I had a member of the #Wolfpack do a site visit to Tranzbytes headquarters in Tempe, Arizona. Full #WolfRecon! What he told me spurred me into getting the COO to verify what this wolf said. In my mind it sounded like he had taken a picture of a Unicorn being ridden by a leprechaun being chased by a Wolf.
One of the biggest issues that Colorado has is with supply & demand. Grows can only produce so fast with the available technology. What if I told you that the #Wolfpack has verified that Tranzbyte has been testing a plant growth accelerant that replicates prehistoric air & water. If you think of the mega fauna 8 million years ago with plants that were out of control in size it's like that. If you want an example in the here and now go visit Hawaii and check out some of their giant fauna. According to Stephen, they can go "way beyond" any giant plants being grown Hawaii. It also reduces growing time by a significant enough percentage that another 1/3 of a grow cycle could be squeezed in (longs aren't you happy you won't have to chase). They also are developing other nutrients and "picks & shovels" type products to expand their footprint which is amazing. Why the F not!
All in all I was very happy with my conversation with Stephen. Erbb gets high marks in my view because they didn't shy away from any of my questions. This little article or Instablog or whatever could be five times as long, but I'll save some of the other bombshells for later an for the inner circle of the #Wolfpack (they earned it).
In my mind ERBB is the ticker you BUY, not the one you sell. You sell the hyper inflated stock that trades over $26.99 because for every 1 share you unload you can get 771 shares of erbb at current market price. Of course this is my opinion and my DD, but let's be real...If I wanted to sell I would have plenty of time to do it before this gets moderated & published.
As always follow me on twitter @WolfofWeedst because my DD is free, my #Wolfpack is bada$$ and our winning percentage is over 95% (probably closer to 100% but we're trying to be modest).
Oh and one last thing... One of my followers @GreenWoodls wanted me to make sure I said "mdbx has a 2 ton refrigerator," You gotta love the #Wolfpack
Kind regards from your Girlfriends House-
I've read some things regarding Erbb that pertains to CYBK which wasn't included. I'll be brief with this but many of you already know that Erbb uses software from CYBK…
What you didn't know was that CYBK didn't actually develop the software, nor do they own it. I asked Stephen about this after my additional digging & what he said is actually hugely beneficial. Here's why:
Tranzbyte is not beholden to CYBK, so if they disappear tomorrow (Or get Finra halted for argument sake) no worries. For starters, there are many software developers that have the same programming, but the best part is Erbb can go directly to the Software developer because they own the software! From my perspective as well as reading between the lines, that's what's happening now. As they say in Jerry MaGuire "It's not yo friends, its yo business." Why pay $10 for something you can get for $5? Make sense.
Now it's going to pain me to say this but someone on Ihub brought up something that I actually had the answer to but didn't include. They were wrong, but because they brought it up it made me remember that it was discussed in my hour long talk with the Erbb COO.
Basically this person said something to the effect that these weed vending machines will not be able to be placed on street corners, gas stations, or Walmarts. I agree with some of the areas of placement. Obviously they won't be near schools, churches, or gun ranges, BUT they can actually be placed. Here's how and here's why….Lets start with the why.
Why: Essentially dispensaries operate under a state issued license, there are protocols as to placement, hipaa, etc, but if the dispensary wanted to place a machine outside its doors I think they could (depending on zoning laws or if they get it cleared by the city. Lets say for arguments sake that wasn't available, but the dispensary owner was leasing a small parking lot somewhere or another parcel of land where it was ok. Under their license they could! Don't believe me...Mehhhh I don't care because 95% of you have never looked at a license.
HOW: We just covered some of the business "how's," but lets think about this next part from a structural standpoint. Obviously these machines aren't going to be free-standing like an ATM on the street right? No, but there is an ATM element to it. Every need to use an ATM at Chase or Bank of America late at night. You swipe your card at the plexiglass door that verifies who you are and you go in take out $50-$60 (depending on your guy) and go on your merry way. Its like that, but with a small twist… SECURITY…. Security from the standpoint that there will be someone there to make sure you aren't kicking the machine, trying to get some free weed, or passing out in the room. The cost benefit is outrageous when you think about it. The dispensary pays for a few shifts for the guard and they are now able to meet their demand and market their proprietary products in different locations. Erbb makes a rip on everything.
Maybe you're thinking Wolf, wouldn't the machine run out fast? Supply is the issue, not the machines. The software inside them sends real time data and warning when levels of product begin to dwindle. Obviously this is uncharted territory, but Stephen brought this up, I didn't ask because I thought it was F**king crazy myself. Best part is that it's "in the works"…. #Wolfpack
Disclosure: I am long ERBB, PHOT, TRTC, SPLI, TTDZ, EDXC, INLC, GDSM.