Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of buying low and waiting for recovery [1][2] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks can lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: GrowGeneration (GRWG) Analysis - GrowGeneration (GRWG) has shown significant price momentum, with a four-week price change of 45%, indicating strong investor interest [4] - Over the past 12 weeks, GRWG's stock has gained 33%, and it has a high beta of 3.29, suggesting it moves 229% more than the market [5] - GRWG has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to GRWG earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - GRWG is currently trading at a Price-to-Sales ratio of 0.53, suggesting it is undervalued, as investors pay only 53 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides GRWG, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]

Financial Data and Key Metrics Changes - The company reported net revenue of approximately $41 million for Q2 2025, exceeding guidance of $40 million and reflecting a decrease from $53.5 million in the same period last year [7][15] - Gross margins improved to 28.3% in Q2 2025, up from 26.9% in Q2 2024, driven by higher proprietary brand sales [9][17] - The net loss for Q2 2025 was $4.8 million, or negative $0.08 per share, an improvement from a net loss of $5.9 million, or negative $0.10 per share, in Q2 2024 [18] Business Line Data and Key Metrics Changes - Proprietary product sales accounted for nearly 32% of total revenue in Q2 2025, up from 21.5% in the same period last year, indicating a stronger focus on higher-margin products [8][15] - In the MMI storage solutions segment, revenue reached $8.1 million, up over 69% sequentially, reflecting strong demand and product diversification [12] Market Data and Key Metrics Changes - The company is expanding internationally, having signed a distribution agreement with V1 Solutions for commercial sales across the European Union and launched a proprietary product line in Costa Rica [11] - The company noted a significant backlog in durable goods, indicating a recovery in demand within the industry [40] Company Strategy and Development Direction - The company is focused on transforming into a leaner, more profitable, product-driven business with an emphasis on B2B customers [6] - The acquisition of Viagro is seen as a strategic move to enter the home gardening market and strengthen the proprietary brand portfolio [11][27] - The company aims to achieve gross margins in the 30% range and is actively working to mitigate tariff impacts through diversified sourcing and improved supply chain efficiency [30][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in the lawn and garden space and the positive impact of cannabis reform on the cultivation ecosystem [14][27] - The company is not providing full-year 2025 guidance due to uncertainties in global trade policy and cannabis reform but expects sequential revenue growth in Q3 2025 [20] Other Important Information - The company ended Q2 2025 with $48.7 million in cash and no debt, providing flexibility for working capital and growth initiatives [13][19] - The company is continuing to rationalize operations and expects further cost savings in the latter half of 2025 [20] Q&A Session Summary Question: Insights on the Viagro acquisition and opportunities in the gardening space - Management sees tremendous opportunity in the lawn and garden space with the Viagro acquisition, which brings strong relationships and products that can crossover into cannabis [27] Question: Future gross margin expectations amid tariff risks - Management aims for gross margins to reach the 30% range and is implementing strategies to mitigate tariff impacts while maintaining competitive pricing [30][33] Question: Status of expense reductions and future cuts - Management confirmed ongoing cost reductions and expects additional improvements in SG&A and operating expenses in the latter half of the year [38] Question: Industry outlook and capital investments - Management noted a significant backlog in durable goods and observed clients beginning to refurbish their portfolios, indicating a positive shift in industry dynamics [40] Question: Timeline for repositioning the business towards commercial focus - Management believes most internal needs are met and anticipates significant savings and growth opportunities by the end of Q4 2025 [46][48]

Core Points - Pinnacle Food Group Limited has received a notice from Nasdaq regarding non-compliance with listing rule 5250(c)(1) due to the failure to file its Annual Report on Form 20-F for the year ended December 31, 2024 [1][2] - The company has 60 calendar days, until July 15, 2025, to submit a plan to regain compliance, and if accepted, it may have up to 180 days from the original due date to file the Form 20-F [2] Company Overview - Pinnacle Food Group Limited is based in Vancouver, Canada, and specializes in selling smart hydroponic growing systems and technical support services to households, community groups, and urban farms [3] - The company offers tailored hardware solutions and data-driven support to optimize smart farming productivity [3]

Financial Data and Key Metrics Changes - The company reported first quarter net revenue of $35.7 million, down from $47.9 million in the same period last year, reflecting the impact of 19 fewer retail locations [13][14] - Gross profit margin improved to 27.2%, up from 25.8% year-over-year, indicating a 140 basis point improvement primarily due to increased proprietary brand penetration [14][15] - The net loss for the first quarter was $9.4 million, or negative $0.16 per share, compared to a net loss of $8.8 million, or negative $0.14 per share, in the prior year [17] Business Line Data and Key Metrics Changes - Net sales in the cultivation and gardening segment were $30.9 million, down from $43.1 million year-over-year [13] - Proprietary brand sales accounted for 32% of cultivation and gardening sales, up from 22.6% in the previous year, reflecting strong growth in proprietary products [14][8] - The storage solutions segment remained flat year-over-year at $4.8 million in revenue, facing some margin pressure [10] Market Data and Key Metrics Changes - The company experienced softness in durables and consumable demand due to regulatory and tariff concerns, particularly noted in March [6] - The company anticipates revenue in excess of $40 million for the second quarter of 2025, while withdrawing full-year guidance due to macroeconomic uncertainties [12][18] Company Strategy and Development Direction - The company is transitioning from a legacy retail model to a more agile fulfillment-centric model, repurposing former stores into regional fulfillment centers [7] - The launch of the GrowGen Pro portal aims to migrate more commercial transactions from brick-and-mortar stores to a digital platform, enhancing operational efficiencies [9] - The focus is on transforming GrowGen into a high-margin product-centric commercial business powered by a digital platform and a simplified physical footprint [13] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing volatility in the market due to tariff-related uncertainties but expressed confidence in the company's ability to return to profitability [11][19] - The company is actively managing costs and exploring tuck-in acquisitions aligned with its brand portfolio, maintaining a strong liquidity position with $52.6 million in cash and no debt [10][18] - Management emphasized the importance of proprietary brand penetration and servicing commercial customers as key to future growth [30] Other Important Information - The company incurred approximately $1.1 million in restructuring costs during the first quarter, impacting operating expenses [16] - The company is evaluating the closure of an additional 10 stores to streamline operations and strengthen margin performance [12] Q&A Session Summary Question: Insights on tariffs and proprietary products - Management indicated that less than 10% of proprietary brands come from China, with efforts to diversify sourcing and negotiate pricing with vendors [24][25] Question: Potential for store closures - Management expects store closures to be spread out, primarily aligned with lease expirations, as consumer traffic has decreased significantly [29][30] Question: Incremental distribution opportunities for proprietary brands - Management highlighted efforts to expand distribution outside the U.S. and work with large stores for distribution, despite store closures [35][36] Question: Consumer pressures and market conditions - Management noted significant weakness in the cannabis industry, particularly in durable goods, while consumables remain strong [48][49] Question: Capital position and future acquisitions - Management emphasized the importance of maintaining capital on the balance sheet while actively seeking acquisitions that are accretive to shareholders [55][56]

These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement for the offering filed with the SEC. Although the Company believes that the expectations expressed in these forward- looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may diff ...