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Gnomestar Craft Inc VDQSF

Gnomestar Craft Inc. is a Canada-based craft cannabis company. The Company is engaged in the medical and recreational marijuana business. It operates in one business segment, the marijuana industry. The Company produces hand trimmed cultivars in its 12,000 square foot indoor facility in Delta, British Columbia.


GREY:VDQSF - Post by User

Comment by Vodisisnotrealon Jun 26, 2018 3:47pm
65 Views
Post# 28232239

RE:Just dumped the $hit out of this garbage.

RE:Just dumped the $hit out of this garbage.Here’s a gift $MNKD on Nasdaq recently added to Russell

CONS

-Heavy debt
-short interest averages 70% 
-short don’t have to cover until its in the high teens
-Management is full of Doctors and Pharmacists not sales guys other than rookie CEO who is a Doctors and Wharton grad. 
-was shorted by Martin Shkreli, Jim Cramer and Big Pharma
-downside is bankruptcy

PROS

-Proved partner had conflict if interest and settled a 50million dollar debt
-Fairvalue is $7
-Revenue traction is about 700k per week 2million is magic number
-ADA conference with wall street will guide interest again due to drug product line potential
-FDA approved 
-Insulin is new and safer than current standard; Importan in Americas market 40billion dollars of it
-upside is potentially there need %2 of market share to become a buyout target
-its for type 1&2

They’re averaging about $1.90 and when they run can gain about 400%-500% on common stock twice that on buying calls. Swinging it is pragmatic to trade around the core. I started with about 5000 shares from 65 cents have churned it to 23000 shares on stink bids writing calls and paying attention to the fundamental events. Insider buying, analyst radings. Buy rumor sell news.

Not much of a chartis but I’m sure if you are or know someone that specializes on that discipline they can anticipate a few catalysts.

In the next half of the year I anticipate that Mannkind will detach from its current price side since their poison pill shares will be full disseminated. Biggest institutions buying are David E Shaw and Blackrock. Furthermore because its biotec I quantified it as a company with a new product appealing to a younger demographic and weighed it against the patents in insulin which are ending.

In about 18 months it should reach sustain a support level of $5 and when it does mutual fund managers have to incorporate a percentage of the portfolios into it as it belongs to the Russell.
This is where we should expect a major cash infusion by an American partner, compounded by expansion into Canada and China; they already are on track to move into Brazil and India(meaningless as margins aren’t great but gives them more people to benefit from treatment.

A hostile take over isn’t likely while they have reserved shares to use increasing market cap which I believe is currently baked into the suppressed price.
But over all the ideal is the company expands its proven delivery system to marijuana (they talk about this in their guidance but say nothing except drug laws in u.s are not conducive to this side of business; im thinking legalization in canada changes this)

expected drugs to show similar effectiveness in the coming three years
-erectile dysfunction treatment
-nicotine withdrawal treatment
-hypertension treatment
-medical marijuana delivery 

They just started their pediatric studies to expand coverage more and in conclusion recently doubled coverage by insurance in the U.S. Without insurance it costs about $1300 Canadian but with insurance its about $5.80 a month.  A package lasts 3 months and doesn’t go bad like current insuling regimens if not refrigerated.

Really neat product in a recovering company.

But if there is anythig I specialize in its value investments (although pot made that go out of style I think consolidation is going to being it back in fashion.

currently portfolio consists of

2015 holds
CM
KL first obtained in its KLG days
BBD first obtained in 2015
APH
BE
CGC
ACB
THC
AMD
MNKD
NFLX
DPW (down about 50% but only less than 3% of portfolio)

The best investment is the one you don’t have to trade. You can crystalize gains and pay 15% tax or less on gains. I mean past performance isn’t indicative of future performance but I think everyone deserves to earn money and not be limited to the abrassive ambiguous cheerleading that goes on in the forum. Every week I get to see the people who become millionaires are the ones who are asking any question and provides perspective on how to achieve plan. The investors that lose are the ones who over leverage their position and need to take out before execution to strike.
Also learning to use Options is a nice way to deal with the ebs and flows.

But I realized awhile ago that unfortunately thw flaging system is abused on some forums and the people who think everyone deserves to make money. I mean lol when I started trading I didn’t even know about settlement dates. You’d think a brokerage would bring that up for someone.
But yeah I digress. Do your dilegence. I like MNKD and can stomach the risk my plan was 2 years and we’re coming up on the first year. But don’t take the gamble on my account. I just happen to believe its going to be something I never sell and will be my biggest win. Ideally it just pays dividends on account of its product line potential.
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