Date : July 4, 2019

New Opportunity:  Tech Central Inc. (OTCMKTS:TCHC)

 

 

There are lots of interesting ways to be involved in the CBD space. As you likely know, the CBD market is exploding, with enormous growth expected from investors.

 

And this company is an interesting new beneficiary of that growth, with its recent move to create technology to help it dominate the CBD affiliate marketing space, which brings the affiliate marketing story into play as well. Our view is that this is a tiny float stock with fresh ties to two big growth stories.

 

In addition, the company and its investors are likely very happy to see the “Cannabidiol and Marijuana Research Expansion Act”, a bill to encourage scientific and medical research on marijuana and CBD, announced by Senators Dianne Feinstein (D-Calif.), Chuck Grassley (R-Iowa), and Brian Schatz (D-Hawaii) on Friday of last week.

 

If anything can ratchet up projections even further for the CBD market (recent Statista research now projects $23 billion total CBD market size by 2023), it would be further support from the US Federal Government.

 

 

Symbol:  TCHC

Company:  Tech Central Inc.

Quote:  http://finance.yahoo.com/q?s=TCHC

Latest News:  http://finance.yahoo.com/q/h?s=TCHC+Headlines

Who is TCHC

Tech Central Inc. (OTCMKTS:TCHC) engages in online video and photography content development and distribution businesses.

 

The company is also involved in Website and mobile app technology integration design and development activities. Its content services include video shoots, photography, photo shoots, video and photography editing, voiceover, and Ad copywriting. The company was incorporated in 2014 and is based in Temecula, California.

 

But perhaps more importantly, the company is moving into the CBD space with a new CBD Affiliate Marketing app that could cause a major stir.

 

The affiliate marketing space has become a dominant online and mobile avenue for product awareness and sales, now accounting, for example, for more than 40% of Amazon’s $100 billion in annual sales. The affiliate marketing space is expected to grow to nearly $7 billion in total size in coming years, and over 80% of online sellers now make use of the strategy for at least some portion of sales.

Affiliate marketing is an online commission advertisement/marketing process where affiliates get a piece of the revenue pie by turning up leads that actually result in sales. Businesses involved in e-commerce have become highly dependent on affiliate marketing because it gets results and the overhead is managed on a performance basis.

At this point, the strategy has become so popular that, on average, affiliate marketing generates over 20% of all online sales, according to thebrandonagency.com.

Recent Catalysts

The company recently announced that it is developing an APP, “CBD Affiliate Marketer,” dedicated to the CBD Industry.

 

According to the release, CBD products are among the hottest on the market right now. The passage of the 2018 Farm Bill has helped to pave the way for the CBD industry to grow in anticipation of full legalization of the cannabis plant. CBD sales have been soaring. Hemp-derived CBD alone was a $390 million market in 2018 and is expected to reach $1.3 billion by 2022 and that doesn’t even include all the CBD products derived from other forms of cannabis.

 

A problem the CBD industry is facing is that it can be a difficult product to market due to outdated advertising restrictions in place by Facebook and Google. TCHC sees potential in providing affiliate marketers the knowledge needed to market CBD products the correct way to capitalize on the industry.

The CBD Affiliate Marketer APP will be useful both for seasoned and new affiliate marketers. It will feature training for all of the top social media platforms and provide members with the tools needed to increase the odds of running a successful campaign. Members will benefit from training and high commissions, CBD sellers will benefit from having exposure of their products, and TCHC will benefit from a fee CBD sellers will provide to have access to the APP. It is important to note that the affiliate program is NOT “MLM,” or Multi-level Marketing.

 

Company President Joseph Lewis stated, “We are excited to enter the CBD sector with this APP. Our official Beta Version will be announced shortly. We feel that by building a presence now that the Company can provide much needed content to the CBD / cannabis sector and position itself for potential acquisitions in the CBD / cannabis sector.”

Technical Analysis

With a float of just 3.7 million shares, TCHC is primed for massive upside potential as new interest comes into the picture. A tight float creates a simple scarcity value premium for shares once the crowd starts to get a whiff of the opportunity at hand.

 

In addition, shares have recently found support on strong indicator readings and may find some additional strength should we see a move back above the 50-day moving average now hovering just above in the $0.47/share area

About TCHC

TCHC (Tech Central Inc.) engages in online video and photography content development and distribution businesses.

 

The company is also involved in Website and mobile app technology integration design and development activities. Its content services include video shoots, photography, photo shoots, video and photography editing, voiceover, and Ad copywriting. The company was incorporated in 2014 and is based in Temecula, California.

 

But perhaps more importantly, the company is moving into the CBD space with a new CBD Affiliate Marketing app that could cause a major stir.

Key Points:

  • TCHC just broke into two massive growth space: affiliate marketing and CBD.
  • TCHC has a small trading float of just 3.7M, which suggests the stock could launch higher on any additional influx of interest.
  • TCHC is making real money, with trailing revs already coming in.
  • TCHC is coming off an RSI trough under 40, pointing to a massively oversold stock now heading back the other way.
  • TCHC just recorded a MACD Bullish reversal, suggesting a technical change in trend.

Conclusion

 

There are two opportunities being highlighted here: CBD, which is a growth juggernaut, as you know. And affiliate marketing, which is emerging as another massive growth opportunity. TCHC is an emerging player with ties developing in both spaces given its new CBD affiliate marketing app.

 

As the market discovers this name, the tiny float will likely come into play, creating very interesting upside potential ahead.

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