Commenting on Canadian Cannabis
Perhaps some of you may have already seen the stories that have been circulating about the current state of medical marijuana in Canada. This is a very complex issue that we are going to try to briefly break down to brass tacks. Essentially, beginning on the 1st of April, we are looking at the end of Canada’s MMAR (Medical Marijuana Access Regulations program, introduced more than a decade ago to allow Canadians with a need for cannabis to obtain a license to grow their own, or purchase it through one of the many dispensaries now operating across the nation.
The new rules will relegate supply duty to one of Health Canada’s eight commercial growers, or to one of roughly a dozen new growers that the Canadian health organization expects to lisnce when the new program takes effect. The move certainly has its opposition in the medical community and private sector, but barring some major development (such as a ruling by the Supreme Court of B.C., where the government is being sued under the assertion that the new laws are unconstitutional), all growing will fall to just a handful of state-sanctioned operations. What excites us most about the potential behind this development, is the direct involvement of some of the companies that we’ve been successfully tracking for quite some time which have formed a series of strategic partnerships.
Among the expected participants is one of our recent favorites in the sector, Creative Edge Nutrition, Inc (FITX). We’re eagerly awaiting further news regarding the status of its build on a 53,000sq. ft. grow facility in Lakeshore, Ontario, where it will become the largest such facility in all of Canada.
This also implicates another of our top pot performers, GrowLife, Inc. (PHOT) which has joined forces with FITX’s CEN Biotech subsidiary in this venture. The operation is expected to yield over a million pounds of marijuana annually to be distributed, with government approval, to the nearly 40,000 medical marijuana patients in Canada, a consumer-base that is expected to grow exponentially over the next few years.
Also in on the deal is ENDEXX Corp. (EDXC), whose “M3Hub Seed to Sale Tracking Platform” will be implemented to help track and maintain compliance for the facility’s huge crop output.
Other pot stocks we’ve covered stand to gain from Health Canada’s new regulations as well. Many of you will recall the huge gains we’ve already seen from Easton Pharmaceuticals, Inc. EAPH. Earlier this month, we received word that the company formed an alliance with a private B.C-based firm which has obtained government approval for its own grow operation.
All in all, we see the upcoming changes as even more reason why we can’t let the cannabis sector slip off of our radars. The new developments have been rolling in at a rapid rate, something we expect to continue indefinitely. Be sure to stay tuned as we keep you up to date on all of the exciting happenings!
Other Marijuana Related Interests
Fortitude Group, Inc. FRTD - We observed nice intraday activity from FRTD on Friday, as we had for most of the week up to that point. On the strength of a PR outlining the company’s new medical marijuana product “MariMist” designed for cancer patients, the stock made an intraday run of 43% as it spiked from a low of .0181 to touch a new high of .0259. From our initial alert low (Tuesday) at .0081, Friday’s high represents an overall move of 220%
Triton Distribution Systems, Inc. TTDZ - TTDZ has undergone a recent consolidation period after delivering us some sizable gains. Today we see news regarding the absorption of Triton into Green Cures, a story that we’re going to want to follow closely, as it could be just the catalyst we’re looking for to see TTDZ bounce back and potentially afford us a rebound opportunity:
TIBURON, CA–(Marketwired – Mar 3, 2014) – Green Cures, Inc. and Triton Distribution Systems, Inc. (OTC Pink: TTDZ) managements, announced today the conclusion and the closing of the takeover transaction and the full control of Triton by the Green Cures management. >> Full PR
Advanced Cannabis Solutions, Inc. CANN - Our first alert on CANN came on January 8th, at which point we observed a low of 6.31. What we’ve seen since then has been a rousing success-story, as the stock has gone on to hit a new high of 35.88. That’s a monstrous move of 469%, an unbelievable figure considering the price range of this stock.
Also, we have a couple of new marijuana stocks to add to our ever-expanding watchlist:
Cannabusiness Group, Inc. CBGI
Intelligent Living, Inc. ILIV
Central European Media Enterprises Ltd. CETV
We originally caught CETV on a Form-4 scan back in May of last year. We were excited to see the buyer listed on the form as Time Warner. At the time, the stock was trading at 2.67. By late October, it hit a high of 6.60. After consolidating gradually to find support near our original alert price, prompting us to include it on Friday’s extended watchlist. After dipping to a morning low of 3.30, the stock would run as high as 5.17. marking an intraday move of 57%
Positive ID Corp. PSID
PSID has been responding extremely well since we re-commenced coverage on the stock on February 18th. At the time we observed a low of .0572. On Thursday, after several consecutive sessions of positive movement, the stock reached a high of .125, good for an overall move of 119%
We prepared a video of the PSID chart, pointing out current levels of support and resistance:
TVIX, DNDN, ARRY, NIHD, EGO, IAG, FNMA, FMCC