MCTC: Prime Low-Float Pick-and-Shovel Gem in the Hemp and CBD Space

Date : December 19, 2019

New Opportunity:  MCTC Holdings Inc. (OTCMKTS:MCTC) – aka Cannabis Global, Inc.

Investors and analysts disagree about most things in the world today. But one thing everyone agrees on is the explosive growth potential in the cannabis space. This applies to both marijuana and CBD. And, in both cases, the growth function is rooted in the transition from a highly compartmentalized niche market to a mainstream phenomenon.

It’s like moving a goldfish from a small bowl to a lake: it grows and grows to fit the container. Mainstreaming a consumer good works in much the same way. And there’s a ton of evidence that this is actually happening right now. The growth is not just theoretical. It’s evident.

However, the hemp and CBD side of the equation is also suffering from a coming supply glut that is being actively discounting by the markets right now. For investors, this combination of end-market demand growth and the discounting of a coming glut is a challenge.

MCTC is extremely interesting precisely because the company has positioned itself to effectively have its cake and eat it, too. This is a science-based pick-and-shovel providing end-market consumers in the hemp and CBD space with a value proposition built of advancing the experience of consuming these products.

According to company materials, Cannabis Global, Inc. is a global player in the fast growing and highly lucrative cannabis marketplace headquartered in bustling Downtown Los Angeles, California. The Company will be involved in both the industrial hemp markets, where permitted and legal under the 2018 Farm Bill, and the legal marijuana markets as permitted and licensed by way of various state and local laws and regulations.

The company is involved in projects including up to 100 acres of hemp cultivation, unique powdered cannabis drinks, and IP in the space, including patents and trademarks. All of this is geared toward advancing the means of delivery for consumers of hemp and CBD – an enormous and rapidly growing market. And, once again, this model does not suffer from the shadow of an advancing supply glut.

The float here is tiny, by the way, at just 3.5 million shares. And the action on the chart suggests a strong potential that the timing is right to take advantage of the enormous growth implied by the macro context and the company’s interesting approach.

 

Symbol:  MCTC
Company:  MCTC Holdings Inc.
Quote:  http://finance.yahoo.com/q?s=MCTC
Latest News: 
http://finance.yahoo.com/q/h?s=MCTC+Headlines
Company Website:
 Cannabisglobalinc.com

Who is MCTC

MCTC Holdings Inc. (OTCMKTS:MCTC) focuses on cannabinoid research. It plans to develop and commercialize hemp extracts and cannabinoids, and other consumer products. The company was incorporated in 2018 and is headquartered in Los Angeles, California.

The company has announced a pending name change to Cannabis Global, Inc., is an integrated cannabis business operation concentrating on high growth and high margins sub-sectors of the marketplace.

Initial business interests include an industrial hemp cultivation effort in Southern California, a hemp oil remediation business that produces ultra-pure cannabinoids free of psychoactive effect producing Tetrahydrocannabinol (THC) and an innovative nano-infused line of THC and CBD powdered drink products.

Cannabis Global Inc is also committed to technology innovation via its advanced R&D efforts relating to bioavailability and sustained release of cannabinoids to the human body.

Recent Catalysts

One of the big factors in play here is the company’s recent reorganization. During late May of this year, a new management team lead by Arman Tabatabaei was installed and an experienced board of directors was appointed. The core team has been involved in various aspects of the cannabis and hemp markets for a considerable period of time. According to the company, “We are in the process of changing our corporate identity to Cannabis Global, Inc., which we plan to re-domicile to the state of Nevada.”

The company also recently announced the filing of a patent on a new hemp extract and cannabinoid delivery system for food and beverages.

According to the release, “the technology enables formulators to utilize very small amounts of extracts in order to produce similar or superior results compared to other infusions. As the Company recently announced, independent testing laboratories confirm when used as directed, Hemp You Can Feel is undetectable in industry standard testing protocols. MCTC plans to market products based on the novel infusions under its Hemp You Can Feel brand and to license the technology were appropriate.”

“We have produced some spectacular results and test data on this new technology and we are in discussions with several companies that are planning product introductions based on Hemp You Can Feel technology,” commented Chief Executive Officer, Arman Tabatabaei. “This marks our 5th patent with several more expected over the short term. We have already begun development to create polymeric nanoparticles of this material, which we believe could represent an additional industry breakthrough. In addition, we are in the process of developing our THC-V and CBN nanoparticle creation protocols.”

The company also just provided information concerning new test results for its Hemp You Can Feel technology, a revolutionary hemp-based infusion designed as a replacement for alcohol in many beverages.

“Our new test results for our Hemp You Can Feel infusion technology are very impressive, exceeding even our optimistic expectations,” commented CEO Arman Tabatabaei. “While Hemp You Can Feel is based on hemp extracts, certified independent laboratory testing utilizing high-performance liquid chromatography (HPLC) indicated undetectable levels of all hemp extracts and major cannabinoids and an absence of other compounds. We believe the uses for this advanced infusion technology are many, especially as a replacement for alcohol in various beverages.”

Technical Analysis

MCTC shares are at key support and triggering bullish signals by the day. And, it should be noted, there aren’t very many of those shares. With a float of just 3.5 million, MCTC is about as tight as you’re going to find.

It’s important that investors and traders appreciate the critical role that float size plays in the evolution of any chart. Supply and demand forms the basis for the pricing of any good or service. And that goes for shares of a stock as well. You can increase the price of anything by either increasing demand or reducing supply. In this case, the available supply of unrestricted shares has been reduced down to a very small amount. Now, as we see it, demand is about to be increased.

Given the overall posture of this chart, the result could be explosive.

About MCTC

MCTC (MCTC Holdings Inc.) is an integrated cannabis business operation concentrating on high growth and high margins sub-sectors of the marketplace.

Initial business interests include an industrial hemp cultivation effort in Southern California, a hemp oil remediation business that produces ultra-pure cannabinoids free of psychoactive effect producing Tetrahydrocannabinol (THC) and an innovative nano-infused line of THC and CBD powdered drink products.

Cannabis Global Inc is also committed to technology innovation via its advanced R&D efforts relating to bioavailability and sustained release of cannabinoids to the human body.

Key Points:

  • MCTC is a pick-and-shovel play in the hemp and CBD space, offering value-add science-based solutions for delivery of hemp extracts and cannabinoids to the human body.
  • MCTC has a small trading float of just 3.5M, which suggests the stock could launch higher on any additional influx of interest.
  • MCTC has already made huge progress on the IP side of the equation, and has positioned itself to harness growth in the Hemp and CBD space without suffering with producers from oversupply.
  • MCTC is coming off an RSI trough under 40, pointing to a massively oversold stock now heading back the other way.
  • MCTC just recorded a MACD Bullish reversal, suggesting a technical change in trend.

Conclusion

The big-picture point here is this: there are too many CBD producers and hemp cultivators. And yet, without doubt, the hemp and CBD, and the overall cannabis patch, story is still going to the moon because of mainstreaming at the end-demand level.

The best-case scenario for investors is a name that has positioned itself to benefit from that demand without suffering from the supply glut. MCTC fits that description to a “T”. The company is driving toward value-add solutions in terms of the delivery of hemp extracts and cannabinoids to the human body with a scientific approach and model that heavily emphasizes defensible IP.

The chart agrees with this analysis in that all the technical evidence shows a timing advantage for new money entering the equation at this stage. And the tiny float suggests the potential for truly explosive upside targeting for traders.

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