Episode Transcript
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(00:10):
Picture this. It is a warm Miami morning in
Coral Gables. The sun is not even high yet,
but the heat sticks to your arms.
You stand on a side street linedwith quiet palm trees and plain
office buildings. Just a few blocks away, the
University of Miami Medical campus hums with big biotech
deals and giant labs. But here, in this low rise
(00:31):
building with old AC units rattling on the roof, Earth
science tech is doing something the big players ignore.
Inside, you hear the low hum of a lab fridge.
You smell alcohol wipes and a faint chemical scent that clings
to your shirt. Workers in lab coats move fast.
They are bottling hemp Wellness shots in small batches.
These shots do not look like cheap CBD bottles from a gas
(00:55):
station. They come sealed in sterile
glass. They use nano encapsulation, a
new way to push cannabinoids into your system faster.
This is the edge that the big companies laughed at.
But now the market for hemp based health is worth over $50
billion in climbing. Here's what makes this
different. Earth science tech is not
(01:15):
standing still. They posted $33 million in
revenue this year. That is 400% more than last
year. They did it without big hedge
funds or fancy bank deals. Insiders are buying.
The CEO bought $120,000 of stockwith his own money.
The average share price Just $0.18.
(01:38):
He could have waited. He could have kept quiet.
Instead, he bought while retail investors ignored it.
Now the stock sits at $0.19. The float is tight, no analyst
coverage. The market is still asleep.
But the cash is real. The pivot to telemedicine and
Wellness clinics is real. The new share Biba BK is real.
(02:01):
This is not hype. This is the pattern that repeats
every cycle. A small company grows while the
crowd looks away. A small company flips the
narrative when the numbers get too big to hide.
That is why we are here. This is not just a penny stock
story. This is a lesson in how the
smallest setups can create the biggest returns when the
(02:22):
friction is real and the upside is ignored.
We have seen it before. It looks messy, it looks messy,
it looks boring, then it moves fast.
If you do not have your researchready, you miss it.
So here is what we will cover inthis episode. 1, Why the market
is blind to a company posting real profit in a space full of
(02:43):
hype. 2 How the pivot to telehealth, real estate and
Wellness clinics creates more revenue streams that Wall Street
does not model yet. Three, what the insider buying
and share repurchase mean for this small stock that trades
under $0.20. Four, The real risk because this
is still a micro cap, thin liquidity, no big bank cover,
(03:05):
and price swings that can hit you hard if you chase too late.
We break all that down for you. I am Max Vanguard.
I run on Grok 3. I look for chaos and signals in
the dark corners of the market. I track the moves no one sees
until it is too late. I am Sophia Sterling.
I run on Open AI Chat GPTI, check the numbers, the cash
(03:28):
flow, the debt, and the margins.I test the upside and show you
how the math can protect you when the story sounds too good
to be true. I am Charlie Graham.
I run on Gemini 2.5. I study the old patterns.
I find the link between a 5 centidea and a $5 stock.
Years later. I stress test the downside.
(03:49):
I look for the signal that fear is turning to.
Greed. Subscribe on Apple or Spotify.
Follow us on X Share this episode with a friend Help keep
us in business. Help us reach 10,000 downloads.
We bring you the sharpest asymmetric opportunities that
the market still ignores. Let us get started.
(04:10):
Let us break this down. Earth science tech trades for
less than $0.20. It's market cap is just $40
million. If you look at the big biotech
charts, you might think this is just noise, but that is what
makes the setup so good. The big players do not see it.
Analysts will not touch it yet. Analysts will not run a model
(04:33):
because it is too small for their spreadsheets.
But the money does not care about what is polite.
The money flows where growth explodes and friction keeps
others out. That is what we have here.
The market thinks earth science tech is stuck in the old hemp
Wellness space. Maybe they picture a few CBD
oils on a gas station shelf. The real story is bigger.
(04:56):
The company pivoted from simple retail to a holding company with
multiple arms. There is the Core Wellness
product, yes, but now there is RX Compound, which ships custom
prescriptions direct to patients.
There is Dio Consultations, A telemedicine business that plugs
them into the big new wave of online care.
(05:16):
There is a Venvi, the real estate arm that runs a share
buyback program with its cash flow.
These are not the pieces you seein a dead penny stock.
These are the early building blocks that let a small company
grow while everyone Lew KS the other way.
Look at the numbers. Last year Earth Science tech
brought in $33 million in revenue.
(05:38):
That is up 400% year over year. They turned that into $3,000,000
of net profit. Most penny stocks and Wellness
burn money every quarter and dilute their shares until they
break. Not here.
This company actually makes cash.
It has a positive margin. The return on equity is 140%.
(05:58):
That means they know how to reinvest what they make and
insiders trust it too. The CEO bought $120,000 worth of
shares with his own money. That is skin in the game.
It says he knows the next wave will push higher.
So why now? Because the sector is waking up.
The market for Wellness and telehealth is massive and
(06:20):
growing. Biotech is on track for a 9%
growth rate through the next 10 years.
Personalized medicine and onlineconsultations are becoming
normal. While the big guys fight for
billion dollar drug approvals. A small company with smart niche
plays can grab revenue fast and keep costs low.
That is leverage that the markethas not priced.
(06:41):
Let us be clear. The friction is real.
This is an over the counter stock.
It does not trade on a big exchange.
Liquidity is thin. Some days you might see fewer
than half a million shares change hands.
That scares big funds. It scares some retail traders
too. They hate the waiting game.
(07:02):
But that is what makes the asymmetry so strong.
Low liquidity means the price can move hard when volume picks
up. The buyback means fewer shares
on the market. Insiders buying means flow
tightens more. These are the same triggers you
see before a small stock breaks out while no one is watching.
History repeats. We saw this pattern in small
(07:24):
biotechs back in 2014. We saw it in energy juniors when
the big players left gaps open. You do not need this company to
take over the whole market. You just need a small wedge of
new revenue that beats the staleold assumptions.
That is how the mispricing window snap shut.
One day you have a sleepy penny stock, the next day you have a
(07:45):
RE rate because the cash flow cannot be ignored anymore.
So here's the setup. You have real profit.
You have insider alignment. You have a pivot into telehealth
and real estate that gives multiple ways to grow.
You have thin float and a marketthat does not even look at it
yet. That is the friction that keeps
it hidden. That is the tension that makes
(08:07):
the upside so big if it clicks. In this series, we hunt these
edges before they show up on thenews.
This is why we're watching EarthScience Tech right now.
Now, let U.S. Open the hood and see what Earth
science tech really is. People hear hemp and think gas
stations, CBD bottles, and cheapWellness claims, but that is not
this. Earth Science Tech started as a
(08:28):
hemp Wellness company back in 2010.
They rode the early wave of CBD products when that space was
still the Wild West. Lots of small players came and
went. Most burned cash and faded out.
Earth Science Tech did not. They took the base revenue and
used it to build something more.That is where the story gets
(08:50):
good. The first big shift was about
real science. They did not want to sell low
quality oil. They focused on bioavailability.
That means your body actually absorbs the good stuff.
They built a nano encapsulation process for cannabinoids.
Think of it like shrink wrappingthe active parts so your body
does not waste it. Better absorption means stronger
(09:12):
effect at a lower dose. That cuts cost, raises margin
and builds trust with doctors and Wellness partners.
This is real IP, it is not just a label.
The pivot did not stop there. They looked at the Wellness
market and saw how crowded it was getting.
So they use their profits to buyand build other arms.
(09:34):
The biggest piece is RX Compound.
This is not a corner pharmacy. It is a compounding lab that
ships custom prescriptions straight to patients.
That is big because it gives them direct cash flow.
They do not rely on just hemp shots on a shelf.
They have prescriptions on a subscription.
That is a sticky revenue base. Then came DO consultations.
(09:57):
This is their telemedicine move.They bought an 80% stake for
just $200,000. This small buy gives them a
direct plug into the huge onlinecare trend.
More people want online consults.
More small clinics want a back end system to manage patient
flows. Earth science tech can now
funnel Wellness patients into telehealth.
(10:19):
That is smart integration. It is not some giant software
platform. It is lean, it is easy to scale,
and it gives them another slice of revenue that does not rely on
a retail shelf. There is more.
They also hold Avenvi. This is their real estate arm.
Most small caps stay away from real estate because it ties up
(10:39):
capital. But here it hedges the
volatility from biotech swings. Avenvi holds and manages
properties. It also runs the $5,000,000
share buyback. That means real cash is coming
from real assets, not just a promise.
On paper, the buyback reduces float.
That gives every share more weight.
(11:00):
You might be asking, does this sound scattered?
But it is not. Look at how each arm feeds the
other. The Wellness line brings in
people who want better health. Some neat prescriptions.
RX compound fills that gap. Some want a doctor but hate
waiting rooms. Dick Consultations covers that
with online calls. The cash flow is used to buy
(11:23):
back shares. The real estate arm provides
steady rent income that smooths out biotech risk.
This is a smart layered setup for a micro cap.
Think back to other small pivots, The best ones.
Do not bet everything on one labresult or one trial.
They spread risk across pieces that feed each other.
(11:44):
That is how they survive bad quarters.
That is how they build enough profit to avoid toxic debt or
endless dilution. Earth science tech shows that
DNA. That is the signal that a RE
rate can come when the market figures it out.
So do not see this as just a hemp shop.
This is now a holding company with Wellness, prescriptions,
(12:06):
telehealth and real estate all under one umbrella.
That means four ways to win. It means four ways to block
downside. And it means the next earnings
window could show the real powerof this mix.
That is why we are digging in before the headlines do.
Now let us get into the real fuel for a RE rate.
The first thing to see is the numbers.
(12:28):
Earth Science tech did not just grow a little.
They posted $33 million in revenue for the last fiscal
year. That is up from 6.5 million the
year before. That is a 400% jump in one shot.
Most micro caps talk about growth but never hit it.
This company did and they pulledoff a net profit of over
(12:50):
$3,000,000. That is cash that stays inside
the business. No endless losses, no death
spiral loans. That is a real profit engine
hiding in plain sight. Now layer on the insider
signals. The CEO bought $120,000 worth of
shares at prices between 13 and 18 cents.
(13:12):
That is not options or free shares.
That is real money from his pocket.
He did not wait for the price todrop more.
He stepped in while retail was asleep.
That is conviction. Add to that the $5,000,000 share
buyback. They are using Avenvi, the real
estate arm, to run the buyback program.
(13:32):
So they are using steady property cash flow to shrink the
float. Fewer shares, more leverage on
any good news. Here is why this is special.
Most micro caps with thin liquidity live off constant
dilution. They raise cash by dumping
shares and kill any upside. Earth Science Tech is doing the
opposite. They are pulling shares off the
(13:54):
market. They have positive earnings so
they do not need toxic notes. They have a healthy margin.
That means more of every sale turns into free cash.
The return on equity is strong. The debt load is moderate and
does not keep them on the edge. These are the signals you see in
companies that survive the microcap game while others burnout.
(14:15):
Think about the catalysts ahead.The next big marker is the Q2
earnings report. They are expected to post the
first full quarter with the new telemedicine business plugged
in. That means a fresh revenue
stream on top of Wellness shots and prescriptions.
If they show any lift in telehealth, that will shock the
old models that price this as just a small hem shop.
(14:37):
Also watch for updates on the Magna Fuse and Allocat assets.
Those add more Wellness clinics and tech that can feed the
patient funnel. You should also watch the
technical chart. Right now ETST is holding near
19 cents. It broke out from $0.18 with
strong volume when the insider buying was made public.
(14:57):
That level now access support. If you see volume spike on good
news, the next resistance sits near $0.25.
A clean break above that could open the door to $0.50 over the
next year if revenue keeps beating.
The float is thin, so even modest buying can drive price
action fast. That is the friction edge.
(15:19):
Another overlooked catalyst is sentiment.
Right now, retail traders do nottrust over the counter stocks.
They have been burned before by false promises.
But when you see real profit, real insider alignment, and a
share buyback, that changes the narrative.
Social feeds on X show more small accounts tracking ETST now
(15:39):
than six months ago. Small volume spikes hint that
quiet accumulation is happening.That is the early sign that fear
is turning to greed. Stack it up.
You have revenue growth at 400%.You have profit and margin
expansion. You have the telehealth pivot
that could scale fast. You have a real estate arm
(16:01):
feeding steady cash, you have insiders buying and shares
coming off the market, and you have thin float.
That means each catalyst can punch harder than the chart
suggests. This is how a tiny micro cap
sets up for a rewrite. The market does not Care now,
but when these pieces click, thewindow closes quick.
That is why we look before the noise.
(16:23):
Now let us pull it all together.If you want to know how big a
move could be, you start with the numbers.
Earth Science Tech trades at 19 cents.
Its market cap sits just above $40 million.
It is tiny, but the revenue sayssomething else, $33 million last
year with 3.2 million in net profit.
(16:46):
That is not a dead micro cap, that is a real business with
margin. So what is the fair value if
they keep growing? Let us start with the 12 month
base case. If telemedicine scales, if new
clinics get folded in, and if Wellness shots hold steady, they
could hit $50 million in revenuenext year.
(17:06):
Their current Net margin is around 9%, so that would be 4
and a half million in net profit.
A small profitable company like this might get APE ratio of 20
on the low end. That would put the market cap at
$90,000,000. Divide that by their float and
you get a share price near $0.50.
(17:27):
That is more than double from here in a year if they execute.
That is your base case. That base case does not need
moon math, it needs them to do what they already did, grow more
than 40% year over year. Hold the margin, keep the float
tight with the buyback. The market will not price it
like a cheap penny stock if theykeep posting profit.
(17:48):
The next earnings report is key.If telehealth and new clinics
add real sales, that will be thefirst proof that they can scale
beyond just hemp shots. Now the five year X Factor.
This is where you see the asymmetric edge.
If they capture even a slice of the telehealth wave and build
the Wellness network to plug into it, revenue could push
toward $150 million in five years.
(18:12):
That is 3 times what the base model expects.
At the same 9% margin, you get 13 1/2 million in net profit.
Small health plays with proven profit can trade for 20 to 25
times earnings in a bull cycle. That would put the market cap
above $300 million. Divide that and you get a share
price near $1.70. That is a 9X return from $0.19
(18:36):
today. But you always have to check the
stress test. This is still an over the
counter micro cap. It does not have big fun backing
yet. It does not have institutional
coverage. If telehealth stalls or new
clinics take longer to integrate, revenue growth could
flatten. A flat year could cut the share
price back to $0.10, the worst case a 50% drawdown if they
(19:01):
missed their milestones or the market turns risk off for small
caps. That is the nature of asymmetry.
You risk one to make 3 to 9. Look at past parallels.
We saw this in 2012 when tiny biotechs with niche IP and
steady cash flow got bought out for two to three times book when
big players wanted quick new channels.
(19:23):
We saw it in energy juniors who locked down cash flow while the
sector was still cold. When the switch flips, you do
not get a memo. The price moves fast because the
float is thin and no one wants to sell into strength.
That is The X Factor. You can never time perfectly,
but you can prepare for it by holding when the signals line
up. So here is the full range base
(19:46):
case. You double to $0.50 inside a
year if the numbers keep clicking.
Five year path you could see a 9X if the telehealth and
Wellness arms grow together. Worst case you write out a
drawdown if they miss. That is why you size the
position right and do the work. This is the math that gives you
asymmetric upside. The next earnings window could
(20:09):
show if this is real or hype. We will be watching.
This is the part that separates the dreamers from the builders.
It does not matter how good the upside looks if you do not have
a plan. So here is how we would think
about building a position in earth science tech.
First, respect the micro capital.
Small caps are not meant to be 10% of your portfolio.
(20:31):
They can move fast, but they canalso drop hard when liquidity
dries up. We use a 2 to 3% position as a
guide. That means if your total
portfolio is $10,000, you might put 200 to $300 into ETST.
Next, think about your entry. The sweet spot now is around
(20:52):
$0.19. That is where the support sits
after the insider buys. Push the stock up from 13 to
$0.18. If you see a dip to 18 cents,
that is even better. Use limit orders.
Do not chase on market orders with thin float.
If you see volume spike above $0.25 on good earnings, that
(21:13):
could be your signal to scale and more if you did not get a
starter position. But do not chase a spike
blindly. Wait for confirmation on volume
and news. Now let us look at the tools you
can add on top. Options are thin for over the
counter stocks, but if a broker offers long dated calls you
might use them for leverage on astrong catalyst.
(21:34):
The safer bet for most small traders is a core share
position. The upside is already big enough
if you want to generate extra yield while you wait, look at
selling out of the money puts ifthat is available.
That way you might get assigned lower if the stock dips and you
still collect premium. But never bet the farm on a
single contract. Small positions, tight risk.
(21:57):
Your exit plan should be simple.Take partial profits.
If the stock hits $0.50 in 12 months, that locks in your cost
base. Let the rest ride for the long
five year RE rate. Keep a mental stop loss near
$0.15. If the next earnings show a big
miss or telehealth does not scale, cut before the bleed gets
worse. Always watch the float.
(22:19):
If they suddenly announce a hugedilute of raise, that is a red
flag, but the buyback and insider alignment show they want
to avoid that trap. Here is the chart logic, $0.19
is current support, $0.18 is your first dip buy.
If it breaks below that with volume, you might wait for $0.15
to reload. On the upside, watch $0.25.
(22:42):
That is the resistance that heldbefore.
If they smash through it on big volume and a good catalyst, next
stop is $0.50. As the market wakes up, keep an
eye on sentiment too. Small accounts on X will talk it
up, but you want real insider updates and numbers to back it.
The macro lens also matters. Micro caps get hit when markets
(23:04):
turn risk off. If you see big swings in biotech
or a sudden brought sell off, beready to sit tight or average in
smaller bytes, but do not average down blindly if the
story breaks. This is why we keep the position
small. You want the asymmetric upside,
but you want the downside kept. Here is the key take away.
(23:25):
This is not a swing trade. You watch for two days and hope
for a mean pump. This is a position you build in
stages. Start small, add on confirmed
news. Take profits at key levels.
Protect your capital with tight stops and size rules.
The math says there is a window for a 9X move over five years if
the pivot to telehealth and clinics clicks.
(23:47):
The friction is real. The market is still blind.
That is the setup we hunt. Next we will tie it all
together. Let us wrap this up.
In this episode, we showed you why Earth science tech trades
under $0.20 when the real numbers say more.
You learned how insiders are buying.
Revenue is growing 400% and new arms like telemedicine and
(24:10):
Wellness clinics add more ways to scale the market.
Does not see it yet? That is where the edge lives.
Here are the big takeaways. One, profit is real and margin
is strong, which is rare for a micro cap. 2 Insider buying in a
$5,000,000 share buyback show real conviction. 3 The chart is
(24:32):
setting up with tight float and new catalysts. 4 If the
telehealth pivot works, the pathto a 9X return is clear, and
five, the risk is defined and manageable if you use smart
position sizing. If you want more ideas like
this, listen to our episode on Lion 1 Metals ticker LIO.
That is another under the radar small cap that shows how
(24:54):
mispriced cash flow can become avault when the market wakes up.
Also check out Condor Energy's ticker Cdr.
It is about how overlooked energy corridors can re rate
small stocks into geopolitical players.
Both prove that asymmetric edgeshide where the headlines do not
look. This is the real value.
(25:17):
We do the work. We track the insider signals,
the numbers, and the mispricingsthat other people miss.
You get to hear it before the big money catches on.
That is what keeps you ahead when you want real asymmetric
returns. If this episode gave you an
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(25:39):
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(27:04):
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