So with the goings on in the marijuana world right now, with stocks jumping and falling daily, I figured it was a good time to talk about what I'm personally getting into and out of at present.Tinley (TNY.C): Our newest client company has had a meteoric rise, so much so that its recently announced $2.5 million financing was locked in at 17c (with 25c warrants) as the stock rose to over 40c.
That company has since dropped a little (no shock, as some folks are definitely selling stock to buy into the PP), but I'm hearing the raise should be closed real soon if it isn't already, which puts everyone back out to open market buying. We're holding, and adding on dips. You should do whatever makes you feel good.
Indoor Harvest (INQD): We started buying this a few days ago on news Chuck Rifici has invested in the company. It was dying on the vertical farming vine, but Rifici doesn't just bring money, he brings connections to a bunch of other bigger players, like Aurora (ACB.V) and the upcoming studmonster Cannabis Royalties.
THC BioMed (THC.V) / Affinor (AFI.C): I got a call from folks connected with THC a few months back asking about Affinor, and I was as firm as I could be that they should avoid connections with the over-promoting scrapper. Connections were duly made, and I don't think it's been a fun time. Both companies got a rise last week on good THC news, but that news clarified for many that THC is a clone play, not a grow play, which we think limits its worth (especially considering a then $100m valuation). We said so publicly, and the stock has cratered since, with Affinor plummeting with it. THC down from $1.10 territory to 93c. We think THC's fair value would be around 65c. And Affinor's? Probably best not to say.
Golden Leaf Holdings (GLH.C): This thing finally turned into the monster it has long threatened to be, finally jumping the stock up past the debenture level, way past the long time 25-35c base, and into the 70c range, in just a week or so. For mine, I think that crazy jump comes from shorts getting squeezed out and finally abandoning their long running stock bashing game. Now that the company has managed to get out from under itself, I believe it has a strong next month to come. Though my average was around 35c, I'm adding in the 70's.
Cannabix (BLO.C): They're going on yet another promotion charge, with a deal at Stockhouse and other places, but I have long maintained there's no business there. A competitor is far closer to owning this space, already committing to police trials, while BLO's product is still desktop sized, rather than handheld. I think the $31m valuation on this stock is bonkers.
True Leaf Medicine (MJ.C): I've owned, sold, reowned and resold this company a lot in the last month, because while I think it has a nice firm base, it also shows frequent bursts of buying, followed by profit taking, and if you can time those moves right, free money falls from the sky. Long term, it's a hold for me. But, like Naturally Splendid (NSP.V), it's overrun by profiteers that are hemming in its growth on the market.
Naturally Splendid (NSP.V): Speaking of, this thing finally started running this week. I came out last week and said it had been missed by the marijuana lift, and that its fundamentals were exactly what they promised, and people suddenly started taking notice, with the stock jumping from 29c (its long time base) to today's 46c (which is actually down from yesterday's 50c). I think there's still value there, but I've been saying that for a year.
Aphria (APH.V): Folks have been asking who I like of the big players, and I keep coming back to this outfit. Vic Neufeld is a smart CEO and is acquiring good purchases like mad. They're hooked into Cannabis Royalties, they're expanding fast, and they're cashed up. I see Aphria as being a daily 2% rise in my money. It's got a strong buying base, it's looking to grow fast, and its risk profile is negligible, in my opinion. It won't give you a daily 25% jump like some, but it won't give you the big downswings either. Pension parker.
Calyx (CYX.V) stock is well up from 1.5c to 10c on the back of news that it has developed software it says is like Slack for industries. We've been following it all the way up and have seen some readers make mad profits on the thing. I'd be shocked if we didn't see a financing on this one if it can hold above 8c for the next few days. Or if it charges back up to 15c and up..
In resources:
I've made a couple of buys based on speaking to brokers around town that I have faith in. One is Sunvest Minerals (SSS.V), which has picked up a historic gold asset that has only been dormant because it was owned by a guy too far into his lifetime to really move it. Big interest forming.
Alix Resources (AIX.V) is a lithium play which has multiple properties advancing and has a nice tiny market cap, and Cruz Capital (CUZ.V) has a bananas number of cobalt properties locked up just as the big money is moving from lithium to that resource. I like cobalt a lot, and Cruz has it stacked. Stock chart is a thing of beauty.
The people behind these plays are VERY Vancouver, I'm sure you'll understand what I mean, but people I trust tell me that looking just at their promotional history would be an error in two of these three instances, that SSS and CUZ could be legacy companies down the road. We'll see, but for the moment, I'm in.
In tech, I wrote last week that I was hearing about activity at Helius Medical Techs (HSM.T). Stock is up from $1.45 to $1.63 since. Keep watching.
Finally, Laguna Blends (LAG.C) got its long awaited jump when it went from $0.25 to $0.38 over the last few days on the news it had bought a CBD bottled water company, and signed former Superbowl champ Marvin Washington as a brand ambassador. Strong showing. Story to come.
Hope you find some nuggets in among all that, do your own due diligence, and thanks for reading, folks.
Chris Parry, www.Equity.Guru
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