RE:Fresh PropagandaI bought heavily yesterday. That's because I think we can draw a number of important conclusions from the presentation, if we read between the lines:
- To those who thought this penny stock might have been in some kind of trouble (so many penny stocks are), especially since they are repricing the warrants, I can say: FORGET THAT.
- Repricing the warrants is a normal way to access fresh funding, yes, but in this case it is obviously a way to take advantage of a growth opportunity. And the fact they could buy the Glacial Gold label and pay consultants with stocks (total consideration of about $200,000) is a very good sign and takes pressure off as regards liquidities.
- $100,000 in consultants fees for me indicates they did market research as for the value of this label (image, appeal), the characteristics of the products to be put on the market (product lines, packaging, dosage) and the location of this market (BC for a start). These indications are clearly stated in the presentation and are thus not simple speculation or wishful thinking.
- Focussing on BC, a market they understand, is wise. Moreover, since competitors are either confusedly aiming for the whole country or located in central Canada, NL will remain a potential attractive and complementary acquisition target should they dominate the BC market. The missing piece for any broad marketing strategy.
- Dominating the BC market also offers NL a long-term growth strategy once the US opens up: to be a key player on the very specific West Coast maket (California et als.). West Coast marketing expertise can also make NL a very attractive acquisition target once Canadian and US companies realize the marvellous position NL has put itself.
- "Human trials" are not a tool for the development of medical products, of course, but for a segmentation of the clientele. NL is thinking in marketing terms (very surprising for an oil refiner) and is definitely a huge step ahead of the competition. No over-extended investments and half-baked strategies towards the lofty Australian or German markets, just the next door BC and West Coast markets - BANG!
- Did I mention Nextleaf is debt-free and 24 cents a share?