Happy Holidays!Today is the last day for "tax loss selling" in 2016 which has been among the primary reasons that there has been such tremendous buying opportunities across the sector.
With the anticipated additional license amendments from Health Canada in early Jan, it is unlikely that the current SP will be available for too much longer. (IMO)
GLTA & DYODD
Wishing everyone a happy, healthy and prosperous festive season. All the best into 2017!
A few weeks back, THC Biomed hit a $1.50 / share when the first Health Canada updates for the company were released. THC BioMed (THC.C) came out of the gates like the shooting star that it is.
A typical pull back in the share price took place as investor expectations were not realised in the time frame anticipated. Lets face it; we all want our investments to shoot to the moon and beyond, and we want it yesterday. When real investors look deeper at the companys strategic plan they will observe that this company is positioned for success irrespective of the political environment around legalization. What appears to some as sell-offs by the companys CEO John Miller, is truly an investors dream. He is selling his shares to reinvest back into the company. This CEO places his investors ahead of his own greed and does not subject his stakeholders to accretive share dilution by a tide of back to back private placements. Right now, in my opinion, THC is a sure shot in a burgeoning stock sector.
THC Biomed is my favourite deal. They are the most licensed licensed producer with a license for cultivation and sale, a license for production and sale of fresh/oil, a license to sell starting materials and clones, and to allow THC BioMed scientists to do in-house analytical testing.
The company is focussed on service, sales and delivery under their current licenses; those changes are reflected on their company website. The CEO expects to have the license amendment for dried and oil sales to patients in the early New Year.
The clones sell $20 each.
Only one of the facets of their 4 pillars business model, the clone sales with the proprietary clone shipper is a business channel that will provide sustainable revenue for the years to come.
THC BioMed has engaged Affinor Growers (AFI.C), with their innovative vertical growth technology to supply vertical farming equipment to the firm. The yield per square foot with a vertical growth system is conservatively triple. This will effectively increase the potential growth area of THC Biomed to 210, 000 sq ft once they complete their second facility expansion.
Its a safe bet that each plant can produce $2500 of product. With THC Biomeds auto-flowering strains the projections for this company are astounding. Once all the systems are in place and we have determined the cycle/production yield time, it will be feasible to estimate the true earning potential of this 4 pillars business model.
To date THC Biomed has not communicated projection on sales valuations. There is no hype with this CEO. He places the emphasis on executing his strategic plan without accretive dilution and without accruing debt quarter over quarter. In fact THC Biomed has a below average burn rate and has a strategic plan that allows for diverse revenue streams and sustainable growth margins into the foreseeable future.
So I dont like THC BioMed..... I love it. It has yielded as much as 1000% profit margin for those who bought in when it traded south of $0.10 less than a year ago. A $100 million market cap is small in comparison to where we will see this company grow in the months ahead. It is my No. 1 pick amongst my small cap marijuana plays.