Shares of GD Entertainment and Technology (OTCMKTS:GDET) continue to show a great deal of promise as the stock works higher over the past month on improving catalysts and fundamental data.
The company is an interesting mix of blockchain and CBD-based products. The most recent catalyst driving the action is the company’s announcement on Tuesday that its wholly-owned subsidiary, The Greenery (TheGreeneryCo.com) received what appears to be the last major shipment of product in establishing its initial product inventory before what the company notes will be “an aggressive distribution process”.
In other words, here comes a more intensely commercial stage for GDET.
Why it Matters
For small and micro-cap investors, the shift from inventory building to rampant commercialization is often a sweet spot for healthy speculation. In this case, the company just brought in 9,500 units of 10mg CBD Gummies for sale under The Greenery brand label.
We will wait for the company to let us know the total value of its inventory, but a quick bout of research suggests that this delivery alone may have a market value of in the ballpark of around $142K. According to the release, this will add to a large inventory that is already full paid off.
“We have amassed a very strong inventory of products now at The Greenery, and we are ready to focus on distribution and monetization going forward,” remarked Anil Idnani, CEO of GDET. “Our large inventory of CBD oil, tincture, salve, pet treats, masks, and our signature Honey Hemp infusion is all fully paid-for. The process of monetizing that inventory represents pure upside for shareholders going forward. Our Greenery segment is in a terrific position, which will allow us to be very aggressive in the weeks and months ahead.”
That bodes extremely well for the company provided they can make good on their distribution plans.
Relentless Upside Potential
The release also went on to note a key strategic point of view: Management believes that, along with topical skin products, gummies represent among the most accessible modes of delivery of CBD to the mainstream retail consumer market.
Accordingly, the company also strongly believes that mainstream consumer adoption of CBD products represents a tailwind set to push overall CBD sector growth in the quarters ahead.
Mr. Idnani continued, “The Greenery is positioned as a leadership play in a rapidly growing space. The overall CBD market continues to blow up, and we have targeted a branding and distribution strategy that will differentiate us from the herd as that growth curve continues to ramp higher. Now that we have amassed a sufficient inventory of premium quality branded products, shareholders can expect more tangible results. Keep an eye out for more details to follow.”
We would also note that, in a previous release, the company announced it had just taken over a high-traffic affiliate marketing site that was quickly outfitted as a primary vehicle to help in ecommerce sales of its inventory. The final hint in its most recent press release suggests some more big news is likely on the way to further develop on that marketing plan to get this big stockpile of high-value product to market and bring a mountain of cash into the company’s coffers.
If true, the action in GDET shares could be explosive. This is definitely one to keep on the radar in coming days.