Thursday, 4 October 2018

Don't Buy U.S. CBD Fake News. Buy Canadian CBD Real News.

The pump and dumps have been picking up in intensity as traders are getting desperate to find "cheap" "cannabis" and "CBD" plays. Stocks like Canopy (CGC) (WEED.TO) and Tilray (TLRY) have gone on huge runs, adding billions in market cap and people are looking for the trickle-down effect on the microcaps. This has resulted in stocks running on pure rumor and conjecture:

  • New Age Beverages Corporation (NBEV) has developed a CBD beverage product portfolio. But that portfolio isn't even in the market yet - it will debut at the North American Convenience Store Show on October 8 - and the market cap is already $422 million.
  • India Globalization Capital, Inc. (IGC) merely identified potential markets for Hyalolex, its lead cannabis-based supplement for treating and managing Alzheimer’s patients and stated its desire to enter into the CBD energy drink space with a distribution agreement and saw its stock shoot up to $14 from less than $1 a couple of months ago. It's now in the dump phase of the stock cycle but at $6.00, still has a market cap of over $200 million.
  • DAVIDsTEA Inc. (DTEA) - actually a Canadian company, but trades only in the U.S. and Europe - has seen its stock move up well over $4.00 on heavy volume twice in the past three weeks - adding $25M+ in market cap both times - before the company itself squashed any fake rumors about getting into the CBD beverage space. 
  • Pain Therapeutics, Inc. (PTIE) nearly tripled in price on Wednesday, adding over $30 million in market cap, as the company announced a strategic conference call and traders were speculating that it was getting into the cannabis market. After the call took place on Thursday and reality set in that it was just an update on its pipeline, the stock tanked more than 57% to pare most of those gains.

Instead of chasing these overvalued companies trying to get into CBD market or random companies not even trying to get into the CBD market. U.S. investors should look north of the border to get their CBD fix. There are two companies we have identified as legitimate players with products in the market that are trading for a mere fraction of what these U.S. companies are valued for what amounts to be nothing more than "plans" to get into the CBD market or nothing more than fake news made up by traders. NeutriSci International Inc. (NRXCF) (NU.V) which trades at a $15 million market cap under its OTC symbol and New Age Farm Inc. (NWGFF) (NF.CN) which trades at a $29 million market cap under its OTC symbol.

Before getting into our report, we want to assure readers that our recent history into trading the cannabis hype in Canada has shown that we know what we are talking about. Since re-focusing on the Canadian market in August, most of our picks have been on a tear, resulting in tremendous gains for our readers:
  • In our write up on August 14, Buying Cheap Cannabis Warrant Plays In Preparation For Fall Pop, we called KALY.wt at $0.03 and HIP.WT.A at $0.12. KALY.wt closed today at $0.065 for a 117% gain and HIP.WT.A closed at $0.275 for a 129% gain.
  • In our write up on September 4th, we picked KBEV at $0.35 (a company also getting into the CBD beverage space). It is $0.65 now for an 86% gain
  • In our write up on September 5th, we picked CHH at $0.355 after it signed a deal with Canopy to get elderly people who live at their facilities and who spent their younger years listening to Richard Nixon's no tolerance policy on drugs to open up to the idea of medicinal uses of cannabis. CHH closed at $0.40, for a 13% gain
  • The next day, we picked a cryptocurrency stock NETC at $0.10. NETC closed at $0.18, for an 80% gain. One of the very few cryptocurrency stocks out there to make a true bounce from its lows.
  • Not everything can go right. Our pick of IGX on September 20th aftr it announced a collaboration with Tilray has dropped from $2.35 to $1.52 as Tilray pulled back significantly after its first bubble-like run up. The SIC area play PIVT has dropped along with SIC crashing, from $0.155 to $0.125 since August 3rd and another area play to GBR, BTU has dropped from $0.08 to $0.04 since our trade alert on August 27th
No one will be perfect on the stock market, but as you can see our track record has been very good overall, taking advantage of the cannabis bull market that is turning into a cannabis bubble - but also managing to pick a cryptocurrency stock that has nearly doubled while most other cryptocurrency stocks are still in the gutter. We are up to 690 followers despite not giving out a lot of alerts, a fact that we think is indicative of this successful, diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We have over 3,000 followers on Twitter as well.

NU is a stock we picked earlier this week , when it was trading at $0.15 in Canada. It proceeded to trade as high as $0.25 before putting back to $0.185 on Thursday. We continue to be very long on this stock and consider Thursday's pullback an opportunity as it is nearly 30 times cheaper than NBEV despite being ahead of the game in the CBD product space. NU's background and technology is used to develop nutraceutical products, but with cannabis legalization and the increasing popularity of cannabidiol for a variety of health benefits, the company quickly pivoted so that it is planning to offer products such as this:

NU has teamed up with Nutritional High International (EAT), bringing Cannabis-Infused Nu Energy Tablets to the market:

"TORONTO, July 10, 2018 (GLOBE NEWSWIRE) -- Nutritional High International Inc. (the “Company” or “Nutritional High”) (CSE:EAT) (OTCQB:SPLIF) (FRANKFURT:2NU) is pleased to provide an update on its previously announced partnership with NeutriSci International Inc. ("NeutriSci") (TSX-V:NU) (OTCQB:NRXCF) (FRANKFURT:1N9) (see press release dated May 30th, 2018).

As of July 11th, 2018, NeutriSci and Nutritional High will commence the production process of its newly developed chewable, sublingual THC product (“Nu Energy Tablets”) for sale and distribution in the state of California. The Nu Energy Tablets will be produced at the Company’s Pasa Verde manufacturing facility, located in Sacramento, California. Delivery of the first purchase orders is on track and set to begin in Q3 of 2018. Initial distribution will begin in approximately 400 dispensaries across the state.  

The recreational use cannabis market in California is expected to exceed $5 billion in 2019.  By comparison, beer sales in California hit $5 billion in 2018, according to industry research group IBIS World.

Jim Frazier, CEO of Nutritional High commented: “We are pleased to announce this milestone in our working relationship with NeutriSci and look forward to rolling out the distribution of the product across California. As a Company, we strive to provide our customers with unique best-in-class cannabis products, and this signifies the continuance of that strategy.”

NeutriSci’s CEO, Glen Rehman stated, “We are very pleased to announce that the manufacturing of the new sublingual melts using NeutriSci’s patent pending CRYOLISATION™ technology will begin July 11, 2018.  This signifies a major step forward in gaining a strong foot-hold in the California market for both companies.  Our partnership with Nutritional High has secured distribution for our ground-breaking product in dispensaries across the state of California.  We are excited to bring our product to the California marketplace!”

EAT has a $90 million market cap in Canada - much bigger than NU's market cap, but much smaller than many other cannabis players - and is another stock that could go on a substantial run. With EAT's aggressive expansion into Nevada, we think there could be news of expanding the tablets to sell in that and other states too, leading to more positive catalysts for NU.

Something very important that can't be overlooked is that NU has signed distribution agreement with one of the largest food retailers in Canada, enabling them access to the shelves of over 1,000 supermarkets:

"Vancouver, British Columbia – January 17, 2017 – NeutriSci International Inc. (the “Company” or “NeutriSci”) (TSX-V: NU) (FRANKFURT: 1N9) the innovator and pioneer behind neuenergy®, announces its latest distribution agreement with Sobeys and Safeway Canada.

Sobeys Inc. and Safeway Canada are wholly-owned subsidiaries of Empire Company Limited (“Empire”).  Empire is one of the largest food retailers in Canada, with over 260 Sobeys and 183 Safeway supermarkets operating in Canada, with an additional 1,200 stores operating under banners such as IGA and IGA Extra, Thrifty Foods, Foodland, FreshCo, Price Chopper, Lawtons Drugs, Rachelle-Béry, Needs, Marché Bonichoix and Les Marchés Tradition."

If NU can get its CBD product eligible/legal for sales in supermarkets, the distribution agreements will already exist for fast expansion. A report independent of ours authored by someone who appears to be a long-term shareholder highly familiar with NU called "The Fundamental Roadmap to $1 for NU" made a brief but informative bullish case for the stock. We suggest you read it.

NF is a stock that we have just started writing about today. It rose 15% in Canada on 12 million volume and it did so for good reason. Despite the move, it is still 15 times cheaper than NBEV and light-years ahead of it in terms of having a CBD beverage on the shelves. The company just purchased Drink Fresh Water LLC last week and on Thursday announced that its flagship Fresh Water CBD beverage is now being sold in 35 States across the U.S. Not plans to sell a CBD beverage like NBEV or IGC, but it is actually selling something in the market:

VANCOUVER, British Columbia, Oct. 04, 2018 (GLOBE NEWSWIRE) -- New Age Farm Inc. (CSE:NF) (OTC:NWGFF) (FSE:ONF) (“New Age Farm” or the “Company”) is pleased to announce that Fresh Water, the flagship product of the Company’s newly acquired wholly owned subsidiary Drink Fresh Water LLC, can now be found in retail stores in 35 states across the nation.  Fresh Water has continued to rapidly expand its footprint since inception.

Joshua Bartch, New Age Farm’s Chief Executive Officer, stated: “We couldn’t be more pleased with the rapid growth of Fresh Water.  Not only does the company’s footprint span more than 50% of the nation but we are continuing to see rapid growth and an amazing retention rate.  Additionally, we are currently working to drop the product in the established distribution through We Are Kured, LLC as well as evaluate new products to add to the line. We are very excited about the future of Fresh Water and will be updating our shareholders on more advancements in the near future.”

If stocks like IGC and NBEV can go on substantial runs, adding well over $100 million in market cap merely on plans to enter the CBD market and even stocks like DTEA and PTIE can temporarily add $25 million market cap or more on rumors before pulling back once those rumors are squashed, how much can NeutriSci with its minuscule $15 million U.S. market cap and New Age Farm with its very small $29 million U.S. market cap move with CBD products actually in market and distribution in place? We expect these stocks to go on monster runs, because investors who want to chase cheap CBD players will eventually come looking for something with substance after being burned on stocks like PTIE and DTEA and turned off by the valuations of the great planners like NBEV and IGC.

Disclosure: We are long NU.V and NF.CN

Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:

The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017

The dividend stock report from dividendstocksonline.com



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