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Business CBD Marijuana MMJ Stocks

Is it All Coming Together for Cannabis Strategic Ventures (OTCMKTS:NUGS)?

The drumbeat is getting louder. Can you hear it? We can’t hear anything else. It sounds like this: “Pot Stocks! Pot Stocks! Pot Stocks!” And on and on.

Check out the marijuana ETF (ticker: MJ). Check out Aurora (ACB) or Tilray (TLRY). Check out GRWG making new all-time highs this month. Check out the AdvisorShares Pure US Cannabis ETF (MSOS). The whole space is skying.

That means it’s time to start to digging around for unappreciated and excessively promising stories – the overlooked plays in the space that haven’t gotten the same fanfare, but may start to draw attention. That’s where the opportunity may be at this point.

And, with that in mind, our attention turns to Cannabis Strategic Ventures (OTCMKTS:NUGS), an interesting story on the OTC as a rapidly growing and potentially underappreciated cannabis stock with strong metrics and signs of increasingly productive positioning in the ecosystem of the booming California cannabis market.

The story for NUGS right now is about timing, luck, and execution – and raw numbers that tell a story of performance that can’t be easily dismissed.

 

Firing on All Cylinders

It was easy to look away from the cannabis market earlier this year after the pandemic got going at full blast. And, it turns out, most companies in that space seem to have done just that, with reduced headcounts, lowered production, and chopped investments in capacity and innovation.

The result was an undersupplied market for cannabis that hit the end market as an actual shortage in many places in May and June.

But Cannabis Strategic Ventures (OTCMKTS:NUGS) was one of the few players that went the other direction, stepping up its investment, driving increased product quality, and adding to its production capacity as its competitors were pulling back.

It was a contrarian bet that has paid off in a big way, but investors and market participants don’t seem to realize it yet, suggesting there may be an opportunity here.

Our thesis is that this type of contrarian bet doesn’t just lead to a short-term burst in superficial growth rate – by stepping into the gap in the market. But it leads to a sticky upgrade in market positioning as end market retailers come to rely on a new a reliable source of high-quality goods when the context is one of scarcity.

 

The Big Point

That has a long-term impact on relationships. We would argue that we have seen precisely that type of transition for Cannabis Strategic Ventures (OTCMKTS:NUGS) so far this year.

If you look back through the company’s releases so far in 2020 and at the close of last year, you will see the following the sequence: a projection about revenues late last year looking for “$5 million in 2020 sales related to cannabis products”, a better than expected push to start the year, a series of investments in expanded production capacity and improved product quality, reports of increased pricing out the door on a per-unit volume basis for production, increased output as capacity increases start to pay off, and an unmistakable trend in sales growth across basically every conceivable period-to-period comparison.

Now, here we sit with results crushing guidance and every sign that the company has made undeniable progress in execution and market positioning in a sector with widely understood cyclical tailwinds in a massive structural growth boom.

Long story short: Cannabis Strategic Ventures (OTCMKTS:NUGS) ticks all the boxes right now and should be worth a closer look.

 

 

COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click here. In addition, this article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

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Business CBD Marijuana MMJ Stocks

The Cannabis Sector Election Spotlight (GRWG, CRON, NUGS, CRLBF)

The polls say Biden/Harris could be the winning ticket by a landslide. Biden negotiated with Sanders to put out an explicit call for national decriminalization of cannabis in the US. And Kamala Harris directly called for a change, announcing in a virtual town hall that: “we will decriminalize the use of marijuana…”

That stacks the odds in favor of a Blue Wave election with major implications for cannabis stocks. With the election just a week away, stocks in the space may see ramping interest into the big day.

With that in mind, here’s a selection of some of the most interesting names in the space, including: GrowGeneration Corp (OTCMKTS:GRWG), Cronos Group Inc (NASDAQ:CRON), Cannabis Strategic Ventures (OTCMKTS:NUGS), and Cresco Labs Inc (OTCMKTS:CRLBF).

 

GrowGeneration Corp (OTCMKTS:GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States.

GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

GrowGeneration Corp (OTCMKTS:GRWG) just announced its acquisition of Big Green Tomato (“BGT”), a two-store chain in Battle Creek and Taylor, Michigan. Big Green Tomato is one of Michigan’s premier hydroponic equipment stores, founded in 2011 by a team of experienced executives with 25 years of combined experience in the industry. BGT has two well established locations with strong commercial operations and annual revenues approaching $16M. As part of the transaction, GrowGen purchased the 10,000 square-foot retail property in Battle Creek.

According to the release, with the BGT acquisition, the Michigan market is expected to generate annual revenues well over $40M for GrowGen. It also brings the total number of GrowGen hydroponic garden centers in Michigan to six, with locations in Battle Creek, Grand Rapids, Livonia, Taylor, South Lansing and West Lansing.

Even in light of this news, GRWG hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Shares of the stock have powered higher over the past month, rallying roughly 11% in that time on strong overall action.

GrowGeneration Corp (OTCMKTS:GRWG) generated sales of $43.5M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 31.7% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($14.8M against $18.8M, respectively).

 

Cronos Group Inc (NASDAQ:CRON) casts itself as an investment firm in the biopharmaceutical space, with a strong emphasis on medical marijuana and cannabis-related research and products. In short, the company seeks to invest in other companies, either licensed or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marijuana for Medical Purposes Regulations (MMPR).

The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment but does not need control.

Cronos Group Inc (NASDAQ:CRON) recently announced the launch of Happy Dance, a new, clean, simple CBD skincare brand, co-founded with actress and New York Times best-selling author Kristen Bell. Happy Dance launches with a trio of high-quality, cruelty-free and vegan bath and body care products.

The new Happy Dance collection features a body butter, a coconut melt and a bath bomb, all formulated with Kristen Bell’s favorite clean ingredients and high-quality CBD from full-spectrum hemp extract. These multi-purpose products are infused with delightful blends of plant-based oils and butters in enjoyable textures that are effortlessly easy-to-use. The ultimate head-to-toe body treats, Happy Dance products are perfectly suited for the CBD enthusiast or for someone experiencing CBD for the first time.

Even in light of this news, CRON hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Shares of the stock have powered higher over the past month, rallying roughly 11% in that time on strong overall action.

Cronos Group Inc (NASDAQ:CRON) managed to rope in revenues totaling $13.7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 33.8%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.8B against $320.4M).

 

Cannabis Strategic Ventures (OTCMKTS:NUGS) bills itself as one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based and incubates, develops, and partners with category leaders within the cannabis and ancillary sectors.

The Firm’s NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands.

Cannabis Strategic Ventures (OTCMKTS:NUGS) recently announced September monthly performance data, which showed a strong continued pace of growth in sales of cannabis products during the month. The Company booked over $2.3 million in total sales from cannabis products during September. That compares to $1.8 million in total sales from cannabis products in August. This represents a sequential monthly growth rate of approximately 28%, reaffirming the overall growth trend that has defined the Company’s performance so far in 2020.

“We continue to see growing market positioning and overall performance despite variable market conditions for cannabis producers over the past two months,” commented Simon Yu, CEO of Cannabis Strategic Ventures. “It’s remarkable to look back and recall that our target for 2020 for the topline was around $5 million in annual sales. We have already more than doubled that, and we look forward to a very strong run into year-end.”

According to the company’s release, demand slowed in August due to macro forces. But September’s strong performance represents the Company’s robust growth trend driven by effective positioning, strong product quality and a growing end-market footprint.

If you’re long this stock, then you’re liking how it has responded to the announcement. NUGS shares have been moving higher over the past week overall, pushing about 3% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 5% in that time on strong overall action.

Cannabis Strategic Ventures (OTCMKTS:NUGS) pulled in sales of $3.4M in its last reported quarterly financials, representing top line growth of 1992.7%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($457K against $17M, respectively).

 

Cresco Labs Inc (OTCMKTS:CRLBF) manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products.

The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand.

Cresco Labs Inc (OTCMKTS:CRLBF) most recently announced the launch of its Remedi brand and its Renew and Realign spray tinctures and Renew capsules in New York. In addition, Cresco has received approval for both THC only and 1:1 CBD to THC capsules, spray tinctures, syringes and vape products from its Remedi line from the New York Department of Health.

“I’m excited to introduce Remedi, the first brand from our portfolio in New York. Remedi products are specifically tailored to meet the needs of medical patients, and they come in precise doses and form factors similar to other health and wellness products. Our new-to-market Sativa spray tincture, as well as new-to-market Hybrid and Indica capsules, are the only category-specific spray tinctures and capsules currently offered in the state,” said Greg Butler, Chief Commercial Officer at Cresco Labs. “This launch is the next step in expanding our branded wholesale business in New York, just as we have across the rest of the network throughout 2020.”

The stock has suffered a bit of late, with shares of CRLBF taking a hit in recent action, down about -3% over the past week. Shares of the stock have powered higher over the past month, rallying roughly 23% in that time on strong overall action.

Cresco Labs Inc (OTCMKTS:CRLBF) generated sales of $130.6M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 46.3% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($100.6M against $222.5M, respectively).

 

 

COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click here. In addition, this article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

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Business Marijuana MMJ

Cannabis Strategic Ventures (OTCMKTS:NUGS) Makes Fresh Strides into Green Wave Election

Heading into what may well go down as the most contentious and divisive election in US history, there’s one thing it would appear most Americans seem to agree on: cannabis should be legal.

In New Jersey, Mississippi, Montana, South Dakota, and Arizona, legalization measures will be on the ballot, and all are expected to pass according to polling data and expert analyst predictions. That follows the big boom in new legalizations we have seen in recent votes in 2016 and 2018. Red states and blue states all seem to be green states.

That could set up a run in cannabis stocks across the board over the coming 10 days, and one stock that looks particularly interesting in this context is a small-cap cultivator in Northern California called Cannabis Strategic Ventures (OTCMKTS:NUGS).

The company has been showing dramatic growth so far this year, with a series of consecutive month-over-month top and bottom-line leaps and a course of progress that appears destined to sharply exceed (maybe 2x or 3x) the company’s ambitious revenue guidance for 2020 issued late last year.

 

New Data

To add to that potential energy building up, Cannabis Strategic Ventures (OTCMKTS:NUGS) recently put out September monthly performance data, which featured a strong continued pace of growth in sales of cannabis products during the month.

According to the company’s release, which went out last week, NUGS booked over $2.3 million in total sales from cannabis products during September. That compares to $1.8 million in total sales from cannabis products in August. This represents a sequential monthly growth rate of approximately 28%, reaffirming the overall growth trend that has defined its performance so far in 2020.

That should also seal the deal on a coming very strong calendar Q3 performance update and 10Q which is destined to show record data across the board as well as extremely strong Q/Q growth.

“We continue to see growing market positioning and overall performance despite variable market conditions for cannabis producers over the past two months,” commented Simon Yu, CEO of Cannabis Strategic Ventures. “It’s remarkable to look back and recall that our target for 2020 for the topline was around $5 million in annual sales. We have already more than doubled that, and we look forward to a very strong run into year-end.”

 

Surge Potential?

We might also suggest that this strong September data highlights a resurgence in growth for Cannabis Strategic Ventures (OTCMKTS:NUGS) following a slight wiggle in August, which could presage a surge into year end, creating a lot of excitement in terms of performance relative to that guidance.

As further noted in the release, demand slowed in August due to macro forces. But September’s strong performance represents a resurgence that continues to point toward the robust growth trend ahead for NUGS driven by effective positioning, strong product quality, and a growing end-market footprint.

As we move toward election day, investors are going to hunting for cannabis names capable of riding the green wave vote now anticipated by analysts. NUGS may be an interesting opportunity in that context given its extremely cheap valuation, with shares currently trading around or perhaps under 1x forward sales in a space typically trading at 3-5x forward sales.

 

 

COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click here. In addition, this article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

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CBD Marijuana MMJ

The Story Turns Back to Pot Stocks (GRWG, CRON, MEDIF, NUGS)

The green machine is back. And we would expect the usual election hype to get started again ASAP. We are now closing in on the next moment when some percentage of the population will be focused more on whether or not their particular state is about to offer legal pot than on who’s the next president.

And that percentage is worth a mint to the industry and to investors who get in for the run into the election. In addition, this time around is super spicy because the polling numbers slant heavily in Biden’s favor and the Biden-Sanders “unity task force” put together a lengthy document of policy recommendations across a wide array of issues that is highly instructive on the pot stock election hype factor.

For example, among the issues that the task force considered was recreational cannabis legalization, calling for the decriminalization of marijuana using executive action. The task force also expressed support for the federal legalization of medical marijuana.

So, get your engines started folks. With that in mind, here’s a selection of some of the most active names in the space, including: GrowGeneration Corp (OTCMKTS:GRWG), Cronos Group Inc (NASDAQ:CRON), and Medipharm Labs Corp (OTCMKTS:MEDIF), and Cannabis Strategic Ventures (OTCMKTS:NUGS).

 

GrowGeneration Corp (OTCMKTS:GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. Currently, GrowGen has 27 stores, which include 5 locations in Colorado, 5 locations in California, 2 locations in Nevada, 1 location in Washington, 4 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 1 location in Oregon, 3 locations in Maine and 1 location in Florida.

GrowGen also operates an online superstore for cultivators, located at https://growgen.pro/. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

GrowGeneration Corp (OTCMKTS:GRWG) just announced the pricing of an underwritten public offering of 7,500,000 shares of its common stock at an offering price of $5.60 per share. GrowGen expects the gross proceeds from the Offering to be approximately $42.0 million, before deducting the underwriting discount and other estimated offering expenses.

The Offering was upsized from the previously announced offering size of $35.0 million of common stock. GrowGen has also granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock offered in the public market. The Company expects to close the Offering on or about July 2, 2020, subject to the satisfaction of customary closing conditions.

If you’re long this stock, then you’re liking how the stock has responded to the announcement. GRWG shares have been moving higher over the past week overall, pushing about 7% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 10% in that time on strong overall action.

GrowGeneration Corp (OTCMKTS:GRWG) pulled in sales of $33M in its last reported quarterly financials, representing top line growth of 152%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($11.4M against $17.3M, respectively).

 

Cronos Group Inc (NASDAQ:CRON) casts itself as an investment firm in the biopharmaceutical space, with a strong emphasis on medical marijuana and cannabis-related research and products. In short, the company seeks to invest in other companies, either licensed or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marijuana for Medical Purposes Regulations (MMPR).

The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment but does not need control.

Cronos Group Inc (NASDAQ:CRON) just announced that the shareholders have approved a special resolution authorizing the Company to make an application for the continuance of the Company from the laws of the Province of Ontario to the laws of the Province of British Columbia, as further described in the Proxy Statement.

The Company believes the greater flexibility afforded by the British Columbia corporate statute by virtue of the absence of a Canadian residency requirement for members of the board of directors of the Company will allow the Company to consider Board candidates from a larger pool of candidates to ensure the Board maintains the right composition, skills, expertise and diversity to drive long-term value. The completion of the Continuance remains subject to the satisfaction of the conditions described in the Proxy Statement.

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action CRON shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -5% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. CRON shares have been relatively flat over the past month of action, with very little net movement during that period.

Cronos Group Inc (NASDAQ:CRON) generated sales of $11.3M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 17.6% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.9B against $286.8M).

 

Medipharm Labs Corp (OTCMKTS:MEDIF) bills itself as a company that primarily focuses on producing pharma-grade cannabis oil and concentrates in Canada. It also focuses on providing cannabis contract processing services to licensed producers and growers; supplying cannabis oil to companies for sale under its brand; and supplying raw materials and processing for the creation of ready-to-sell cannabis products. The company was founded in 2015 and is headquartered in Barrie, Canada.

This expert focus on cannabis concentrates from our cGMP (current Good Manufacturing Practices) and ISO standard clean rooms and critical environments laboratory, allows MediPharm Labs to produce purified, pharmaceutical-grade cannabis oil and concentrates for advanced derivative products. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream extraction methodologies and purpose-built facilities to deliver pure, safe and precisely-dosed cannabis products to patients and consumers. MediPharm Labs’ private label program is a high margin business for the company, whereby it opportunistically procures dry cannabis flower and trim from its numerous product supply partners, to produce proprietary cannabis oil concentrate products for resale globally on a private label basis.

Medipharm Labs Corp (OTCMKTS:MEDIF) just announced that it has appointed James (Jim) Maloney as Chief Financial Officer, effective July 20, 2020.

In his role, Mr. Maloney will be responsible for leading the finance function including all aspects of financial planning and analysis, setting Medifast’s financial and capital allocation strategies, and managing investor relations. He will serve as a member of the company’s leadership team and report directly to Chief Executive Officer Dan Chard.

The stock has suffered a bit of late, with shares of MEDIF taking a hit in recent action, down about -7% over the past week.

Medipharm Labs Corp (OTCMKTS:MEDIF) generated sales of $11.1M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -65.8% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($21.4M against $25.1M, respectively).

 

Cannabis Strategic Ventures (OTCMKTS:NUGS) bills itself as one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based and incubates, develops, and partners with category leaders within the cannabis and ancillary sectors.

The Firm’s NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands.

Cannabis Strategic Ventures (OTCMKTS:NUGS) recently announce topline performance data for the month of June, which featured over $1.3 million in sales, representing over 40% sequential monthly revenue growth. This performance demonstrates a dramatic acceleration in month-over-month growth.

“June set new records for the Company, with a massive acceleration in the pace of growth, which is so far continuing in July,” stated Simon Yu, CEO of Cannabis Strategic Ventures. “We have successfully repositioned ourselves in the ecosystem of the California cannabis marketplace, moving up the ladder and widening our distribution footprint. We will continue to focus on ramping production capacity and steadily driving gains in quality, efficiency, and volume. That has been our focus all year. Besides dramatic expansion in sales volume by weight, we have also been rewarded by the market with steady gains in pricing. That represents the ultimate positive reinforcement.”

Even in light of this news, NUGS has had a rough past week of trading action, with shares sinking something like -2% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Shares of the stock have powered higher over the past month, rallying roughly 53% in that time on strong overall action.

Cannabis Strategic Ventures (OTCMKTS:NUGS) generated sales of $1.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 91.4% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($222K against $13.1M, respectively).

 

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

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CBD Marijuana MMJ

Cannabis Strategic Ventures (OTCMKTS:NUGS) and the Take-Out Contest

The cannabis cycle has been brutal in both directions, skyrocketing speculation gave way to dark depts of bankruptcy and bag-holding. That last part came to an end in March, when the cannabis patch capitulated into a final, trend-ending crash that killed off the rest of the weak hands – both in terms of bag-holders and bad balance sheets.

Now, here we are, with the herd thinned out and cash pouring onto the strong balance sheets from private equity, family offices, partners, institutional investors, and growing sales. With the space on strong-footing and analyst ratings starting to move higher (ie, companies able to grow fast enough that sandbagged outlooks are still above current forecasts), the next step is a likely wave of industry consolidation.

With that in mind, we want to talk about a tiny-cap cultivator in Northern California: Cannabis Strategic Ventures (OTCMKTS:NUGS).

When understanding how to invest on a “take-out” thesis, you have to realize you are moving out of the Keynesian Beauty Contest game – which is probably the most famous version of what the Game Theory folks call a “Common Knowledge Game”.

 

The Beauty Contest

The Keynesian Beauty Contest is something derived from how the legendary economist, John Maynard Keynes, used to explain what produced the movements of stocks in the stock market.

It works like this: imagine a beauty contest on a stage. In front of the stage are 3 judges. Behind them are rows of people in the audience. And you are standing at the back of the room watching it all.

The job of the judges is to decide which of the contestants is the most beautiful. To do that, they look at the contestants and pick who think is the prettiest.

Imagine that there was a contest going on at the same time that was an audience betting activity, where audience members could write on their seat-numbered ticket stubs who they thought the judges were going to pick as the winner. They would then turn in those stubs in a pass-the-hat process before the winner was announced. Anyone who got it right would win a prize.

Your job, standing at the back of the room, is to bet on which of the contestants will be the most popular choice by the audience.

So, everyone is watching the contestants. The judges are evaluating which is the most beautiful. The audience is judging which one looks like the one the judges will think is most beautiful. This is a different idea. Imagine the guy sitting in seat 1A. Let’s call him “Bob”. Bob may like contestant 2 the most. #2 is the one he thinks is the prettiest. But maybe that’s because she kind of reminds him of his babysitter – he had a huge crush on her when he was nine. So, Bob probably isn’t going to write “#2” on his ticket stub if he wants to win. However, if Bob was a judge, he might vote for #2. But #3 is the one he can tell is the more classically beautiful woman, so he writes “#3” on his ticket stub and puts it in the hat.

And you are judging which one you think the audience will think the judges will think the prettiest. It is one more step removed. And that’s the same job equity market investors have when selecting which stocks to invest in. You are trying to be one step ahead of the crowd, which means you have to figure out which one the crowd will end up liking the most.

 

The Take-Out Contest

As noted above, the takeout contest is a different game. Here, you move from the back of the room and sit in the audience. The big cash-rich mid-cap and large-cap companies and private equity investment fund boards are the judges. Your job is no longer about what the crowd is going to think. It’s about what the judges are going to like.

Which brings us back to Cannabis Strategic Ventures (OTCMKTS:NUGS). At 1x forward sales (based on extrapolation of the past 3 months), the stock is massively undervalued relative to larger peers given its recent jump in topline growth and new premium product pricing standard.

To hammer this home further, the company just announced record topline performance data for the month of June, which featured over $1.3 million in sales, representing over 40% sequential monthly revenue growth.

“June set new records for the Company, with a massive acceleration in the pace of growth, which is so far continuing in July,” stated Simon Yu, CEO of Cannabis Strategic Ventures. “We have successfully repositioned ourselves in the ecosystem of the California cannabis marketplace, moving up the ladder and widening our distribution footprint. We will continue to focus on ramping production capacity and steadily driving gains in quality, efficiency, and volume. That has been our focus all year. Besides dramatic expansion in sales volume by weight, we have also been rewarded by the market with steady gains in pricing. That represents the ultimate positive reinforcement.”

According to the release, helping to drive performance in June, management notes that the Company’s move in April to more than double its production capacity paid off in the form of expanded production last month as harvest size increased sharply. Prior to the expansion in harvest size, the Company had been consistently selling out of its entire inventory on a weekly basis.

The company is also setting up to expand its production capacity again, bringing on another 300k sq ft of capacity to power continued growth in the second half of the year.

NUGS has also demonstrated a power position in the California cannabis market in terms of distributor relationships.

The stock deserves a look as something the judges may pick as the prettiest face. The growth is spectacular, and the company has built up serious production capacity potential and a powerful position in the California market. For large balance sheet players that don’t have exposure to the California market, it might be an interesting opportunity.

 

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

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Business CBD Marijuana MMJ Stocks

Cannabis Investors Search for New Leadership (TCNNF, NUGS, GTBIF, MJNA, ACB, CGC, TLRY)

The new pot stock bull is underway, and investors are hard at work, searching for the next champ picks that will lead the way in the new trend. Last time around, we saw the likes of Aurora Cannabis Inc (NYSE:ACB), Canopy Growth Corp (NYSE:CGC), or Tilray Inc (NASDAQ:TLRY), each of which sported thousands of percentage points in investor gains over about 2 years into the 2018 highs.

Bull markets are fundamentally about expanding excitement ultimately rooted in a theory or vision about the long-term future of business in a sector. In this case, the long-term vision remains in place, complete with gawdy growth forecasts from the Street and plenty of major catalysts ahead. The bear we have seen, which has now come and gone, was about investors getting ahead of the game a bit too far, and about too many pretenders issuing shares into the mix.

However, the bear did its work. The weak-handed money has been expunged from the system, and the weak balance sheets and frauds have gone the way of the Dodo.

With that in mind, we take a closer look at a few of the more active names in the space: Trulieve Cannabis Corp (OTCMKTS:TCNNF), Cannabis Strategic Ventures (OTCMKTS:NUGS), Green Thumb Industries Inc (OTCMKTS:GTBIF), and Medical Marijuana Inc (OTCMKTS:MJNA).

 

Trulieve Cannabis Corp (OTCMKTS:TCNNF) recently announced the doors of a record 50th location within the State of Florida opened on Friday, June 26th.

According to the release, the Ocala location is Trulieve’s 52nd location in the United States, 50 of which are located in the Company’s home state of Florida. Near downtown Ocala, the dispensary supports the Company’s mission to expand and ensure safe, reliable patient access statewide. It also joins Trulieve’s 49 other dispensaries statewide, including in nearby Gainesville, Lady Lake, and Daytona Beach. At approximately 4,400 square feet and with 10 point-of-sale stations, the dispensary will be the Company’s first in Marion County.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.

It offers a suite of Trulieve branded products with approximately 155 stock keeping units, including smokable flower, flower pods for vaporizing, concentrates, topicals, capsules, tinctures, and vape cartridges. As of May 22, 2020, the company operated through 50 dispensaries, which included 48 locations in Florida.

According to company materials, “Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.”

TCNNF hasn’t really done much of anything over the past week, with shares logging no net movement over that period. TCNNF shares have been relatively flat over the past month of action, with very little net movement during that period.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) managed to rope in revenues totaling $129.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 118.5%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($143.5M against $104.7M).

 

Cannabis Strategic Ventures (OTCMKTS:NUGS) just announced continued robust growth in total volume of cannabis sales and revenues during the month of June, which is now on pace to be a record-setting month for the company.

This announcement comes as Cannabis Strategic Ventures rides a streak of consecutive record months in terms of sales volume and monthly revenue growth. According to its release, the strong performance seen so far in June was aided by a single day (June 4) when NUGS booked $400,000 in sales – its largest ever single day of sales. Management notes that the Company booked a record $929K in sales in May (7% more than its April sales total, which was also a monthly sales record, itself). The company had already amassed nearly $900K in June sales with 30% of the month remaining.

Simon Yu, CEO of Cannabis Strategic Ventures, stated, “We continue to benefit from our decision in March to get more aggressive rather than retrench in response to the coronavirus crisis. The cannabis shortage we have seen in California since that time has afforded us a golden opportunity to sharply expand our distribution footprint and nurture a widening network of key distributor relationships. June is on pace to be our third consecutive record sales month. Given our strong positioning and expanding production capacity, we anticipate continued robust growth ahead.”

Cannabis Strategic Ventures (OTCMKTS:NUGS) is one of fastest growing stories in the cannabis space, with a strong presence in the California cannabis marketplace showing consistent growth on a sequential monthly and quarterly basis. Q2 2020 appears to be a breakout quarter for the company based on the data and communications so far established.

In addition, the company has recently successfully expanded its production capacity by as much as 2.5x. That expansion was necessary to keep up with demand as overall top line sales have increased rapidly during calendar Q2, with the monthly pace of sales this quarter on pace to average more than 800% above the average monthly pace seen in calendar Q1. The new farm will presumably balloon that capacity factor when it comes online for operations.

Cannabis Strategic Ventures (OTCMKTS:NUGS) pulled in sales of $1.4M in its last reported quarterly financials, representing top line growth of 91.4%. The company also has provided data from recent operations that suggests it is on pace to surpass $11M in sales in 2020, outperforming its guidance from December projecting $5M in 2020 sales.

 

Green Thumb Industries Inc (OTCMKTS:GTBIF) just announced it will open Rise Duncansville, its 47th retail location, on June 30. According to the release, profits from the first day of sales will be donated to Last Prisoner Project, a nonprofit coalition of cannabis industry leaders, executives, and artists dedicated to bringing restorative justice to the cannabis industry. Green Thumb also donated the first day of profits to the Last Prisoners Project when Rise Chambersburg opened in Pennsylvania earlier this month.

“We are grateful to create jobs throughout the state as we continue expanding our retail footprint in Pennsylvania during the COVID-19 crisis,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “The team is also honored to partner with the Last Prisoner Project on the important work of redressing the past and continuing harms of unjust laws and policies so that victimless cannabis prisoners can walk free.”

Green Thumb Industries Inc (OTCMKTS:GTBIF) as a producer and distributor of cannabis products including flower, concentrates for dabbing and vaporizing, edibles, and topicals. The company markets its products through third party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name.

The company is a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve.

GTBIF hasn’t really done much of anything over the past week, with shares logging no net movement over that period. GTBIF shares have been relatively flat over the past month of action, with very little net movement during that period.

Green Thumb Industries Inc (OTCMKTS:GTBIF) managed to rope in revenues totaling $138M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 271.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($101.8M against $182.5M, respectively).

 

Medical Marijuana Inc (OTCMKTS:MJNA) just announced that Raul Elizalde, co-CEO of its subsidiary HempMeds, has been invited to speak on Endeavor’s expert digital panel, “Cannabis in Mexico: The Debate and Opportunities for an Emerging Industry,” which was held on June 24.

“Raul pioneered the cannabis industry in Mexico and played an integral role in helping us find a pathway to legally selling CBD in several Latin American countries,” said Dr. Stuart Titus, CEO of Medical Marijuana, Inc. “We stand behind him in his legislative advocacy efforts and believe that he will add great value to this event.”

Medical Marijuana Inc (OTCMKTS:MJNA) bills itself as an investment holding company that operates in the medical marijuana and industrial hemp markets.

Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries. The company licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry.

It engages in the research and development of cannabinoid-based pharmaceuticals; and marketing and distribution of cannabidiol hemp oil-based products. In addition, the company provides management support and services to cooperatives, collectives, health and wellness facilities, and medical clinics; and consulting and securities services to businesses and individuals in the legal cannabis industry.

Further, it focuses on the treatment of pain and other medical disorders with the application of chewing gum-based cannabis/cannabinoid medical products.

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. MJNA shares have been relatively flat over the past month of action, with very little net movement during that period.

Medical Marijuana Inc (OTCMKTS:MJNA) managed to rope in revenues totaling $16.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a declining rate of top line growth of -4.2%, as compared to year-ago data in comparable terms.

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