The Cannabis space continues to be one of the hottest investment theses of the 21st century. And, given the recently proposed bill in the US Senate, 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, that picture has only brightened.
Today, we want to take a look at three of the most interesting stocks in the space: NUGL Inc. (OTCMKTS:NUGL), Green Thumb Industries Inc (OTCMKTS:GTBIF), and Tech Central Inc. (OTCMKTS:TCHC).
NUGL Inc. (OTCMKTS:NUGL) is the world’s first cannabis search app built for the people, by the people.
According to the company’s site, NUGL connects cannabis companies across the nation, bringing the cannabusiness community closer together while facilitating connections with consumers in emerging and expanding markets. Its software platform is built to encourage and sustain networking connections and provide a more detailed, focused search experience for its users.
The company’s goal is to build the most user-friendly app experience in the cannabis industry by listening to its users and giving them what they want. NUGL is the only cannabis search app that offers equal and unbiased search results. The company doesn’t sell top-spot listings or fake reviews, so its data stays true.
Use NUGL to search for genuine user-rated dispensaries, strains, doctors, lawyers, cannabis service providers, vape shops, hydro stores, brands and more. NUGL’s flexible web app has no geographic limitations and can rapidly connect cannabis companies, related vertical services and users.
The NUGL iOS and Android app brings a powerful cannabis search tool within reach of anyone, anytime, anywhere with the ease of a smartphone.
Headquartered in Chino Hills, CA, NUGL Inc. is an unbiased search engine and online directory for the marijuana industry that adjusts rankings based on community input. NUGL database includes listings for dispensaries, strains, doctors, lawyers, service professionals, vape shops, hydro stores and brands.
The company focuses on leading the evolution in business relations, development and organic data in the cannabis industry with metasearch technology. Additionally, with the brand-centric search engine software, consumers can very easily find stores offering their favorite products while various brands can promote their offerings for sales and distribution.
NUGL represents both a technical and fundamental opportunity. The company is a play on the rapidly growing cannabis patch theme, with a strong offering in the services side, where competition is far less developed than in the production space.
In addition, we already see very strong growth. But the crowd has yet to pick up on the idea, so new prospective bulls on the stock have the chance to check it out here, at key support, where it major rallies have taken root in the recent past.
Green Thumb Industries Inc (OTCMKTS:GTBIF) bills itself as a company that manufactures and sells various cannabis products in the United States. The company’s cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals.
The company markets its products through third-party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name. The company was founded in 2014 and is headquartered in Chicago, Illinois.
According to company materials, “Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE(TM) dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven highly regulated U.S. markets. Established in 2014, GTI employs more than 350 people and serves hundreds of thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business.”
GTBIF just announced it will open Rise Mechanicsburg, its sixth retail location in Pennsylvania and 25th in the nation, on Thursday, June 27.
Even in light of this news, GTBIF hasn’t really done much of anything over the past week, with shares logging no net movement over that period. What’s more, the stock has registered increased average transaction volume recently, with the past month seeing 12% beyond what we have been seeing over the larger time frame.
“We are thrilled to open the sixth Rise location in Pennsylvania and to create additional jobs in the Harrisburg-Carlisle metropolitan area,” said GTI Founder and Chief Executive Officer Ben Kovler. “We look forward to providing exceptional customer care and to helping more people exercise their right to wellness.”
Currently trading at a market capitalization of $1.2B, GTBIF has about $112M in cash on the books, which stands against about $9.3M in total current liabilities. The company has pulled in about $14M in revenues on a TTM basis. We will update the story again soon as developments transpire.
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.
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.