Canada's Next Big MMJ CompanyEMC is my top marijuana play in 2017 for many good reasons.
- pharmaceutical division
- ability to expand current facility to produce 21000kg/yr
- small share structure of 65 million
- $27 million in cash
I got my toes wet at $3 and took a dunk for a bunch at $2.80 today. It could go lower in the short term but the upside potential for a longer term investment here negates much downside. The companies that can capture a big portion of the recreational market and diversify to create and expand revenue streams from a plant that
big pharma is beginning to lose out to will be worth billions in a few years time.
People use marijuana for many reasons and as science removes the
stigma of this plant that was brought on by self interest
groups it will advance to be very
beneficial in many forms.
Medical marijuana is already proving to be a game changer for the U.S. states that have legalized it
- $1 billion industry for Colorado in first 10 months of 2016 (20% increase from 2015)
link - savings to healthcare systems
link
- prescriptions per doctor down an average of 500/yr (opioids down 1800/yr)
link
- 25% drop in overdoses
- significant tax revenue
link - crime rate decrease
link - decrease of alcohol consumption
The potential for this incredible plant is massive and countries realizing it, are legalizing it. Marijuana useage has been severely underestimated as most prefer to keep it hush as it's still stigmatized - this is evidenced by a recent gallup pool that shows 1 in 8 americans use it. As the pill form and oils become more common form, the useage will likely climb to at least double that in a short time. So even though there have been huge gains I still see this is as the ground floor to invest in a new industry that has massive expansion potential. In the U.S. there are over 400 companies jumping on the marijuana bandwagon that are vying for investor attention, unfortunately many will drain their investors. In Canada there are only 35 regulated marijuana plays to choose from - my bets are on that EMC will be the model for huge growth in this sector for years to come.
In the next few months I believe valuations are going to surge like crazy as everybody realizes the upside is too hard to ignore. We'll see which companies act on this to bring true shareholder value in the mean time. The ones that successfully focus on market infiltration, branding and scientific research for pharmaceuticals like EMC will have no problem enticing investors for I believe this is will be a huge and important sector in a few years time, as does EMC.
"This is an incredibly important milestone for us as a company," says Gordon Fox, CEO of Emblem Corp. "With our ability to extract cannabinoids we can now actively execute the business plan we've built for our pharmaceutical division."
Emblem has hired three scientists to work exclusively in this division to pursue the development and manufacture of advanced dosage forms of cannabinoids.
EMC is a lot more than just a company with a license to grow pot.
Do your own DD