California Rec. Is Coming And These Companies Are Going To Capitalize In A Big Way
TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
The California recreational cannabis market is set to open next week and investors are looking for opportunities levered to this milestone in the industry.
This development has caught the attention of the mainstream media and outlets such as CNBC have recognized the magnitude of this opportunity.
The cannabis stock market has been on fire this week and many investors want to buy in before the California market opens. Today, we have highlighted three companies levered to the California recreational market and recommend keeping an eye on one in particular.
FinCanna: A New California Cannabis Opportunity
Although many cannabis stocks have already recorded significant gains, FinCanna Capital Corp has not. The company will commence trading on the CSE today under the symbol CALI.CN and we are bullish on this new opportunity.
FinCanna is a royalty company for licensed medical cannabis with a focus on California. FinCanna, led by a team of finance and industry experts, is building its portfolio of investments in scalable best-in-class projects.
FinCanna’s flagship investment is to fund Cultivation Technologies Inc.'s indoor medical cannabis facility to be developed in Coachella, California. This will be a state-of-the-art facility that will include cultivation, extraction, manufacturing, testing and distribution.
We are favorable on this structure since FinCanna will own equity in the business and be entitled to a royalty based on the amount of revenue generated. This is an attractive approach and we are favorable on the deals that have already been signed.
Kush Bottles: An Ancillary Opportunity
While Kush Bottles (KSHB) does not actually sell cannabis, the company is levered to the growth of the legal cannabis market. We are bullish on Kush Bottles and find it to be one of the most attractive ancillary opportunities.
Kush Bottles sells the packaging for the physical cannabis product and should see significant growth over the next year. Over the last year, Kush Bottles has expanded its reach and we are favorable on the long-term outlook
Kush Bottles is one of the few OTC cannabis companies to be covered by a Wall Street firm. Earlier this quarter, Cowen and Company raised its price target on KSHB from $3 to $4.50. This is a company that investors need to keep an eye on.
EVIO: A Cannabis Lab Testing Opportunity
As demand for legal marijuana grows, so will demand for laboratory testing services. EVIO Inc. (EVIO) is levered to this burgeoning opportunity and the shares have been in rally mode this week.
Although the last week has been significant, we still consider EVIO to be an undervalued opportunity. The company has expanded its reach in California as well as in Colorado and in Oregon. EVIO is in the middle of a coast-to-coast expansion and we are favorable on this opportunity.
Earlier this month, EVIO strengthened its balance sheet and we expect to see the company put this money to work. This is a stock to watch and we have the company on our radar ahead of California’s recreational market opening
California Dreaming: Stocks to Watch
When Colorado’s recreational cannabis market opened in January 2014, cannabis stocks surged higher. California’s recreational cannabis market is expected to be the largest in the world and we expect to see cannabis stocks trade higher once this market opens.
Some companies levered to the California recreational cannabis market include: Medicine Man Technologies (MDCL), GrowGeneration (GRWG), Terra Tech (TRTC), CannaRoyalty (CRZ.CN) (CNNRF), Future Farm Technologies (FFT.CN) (FFRMF), Marapharm Ventures (MDM.CN) (MRPHF) and American Cannabis Company (AMMJ).
Disclosure: This report was authored by and is property of Technical420.All information and data relied upon in drafting this report is publicly available.The author believes and considers its ...
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