Why Sun Kissed Industries Inc. (OTCMKTS:SKDI) is About to Explode Onto the Scene
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Okay, so this is a very speculative note, but one worth pursuing: Sun Kissed Industries Inc. (OTCMKTS:SKDI) is a little known, thinly traded penny stock that may just be setting up for something big.

Why? Because, after months of silence, the company just put out a very suggestive press release in the form of a letter to shareholders. The key to note here is that the CEO heavily indicated an imminent acquisition that would take this company from effectively a CBD-leaning shell vehicle to a major player in one of the most explosive markets on the planet right now.

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Ladies and Gentlemen of the Jury

I give you Exhibit A: “We have been quiet in recent months, but a lot of action has been going on under the surface. Significant announcements are forthcoming as we aggressively pursue an immediate acquisition that will position the Company as an emerging leader in the CBD products marketplace. We are already in advanced stages of negotiation with a very promising high-growth target.”

Those statements are not something the CEO of a publicly traded company is going to say lightly. If he said it, it’s going to be followed up by action.

Next, consider Exhibit B: “As such, we have put in place a strong strategy for carving out a dominant presence in a highly differentiated niche inside of the broader CBD marketplace. The first step will be taken via a meaningful M&A move on the immediate horizon. Keep an eye out for more details in the days that follow.”

Again, this is not the sort of thing that’s going to be said casually, with no follow-on event to back it up. Note the words, “on the immediate horizon”. That generally means ‘in the next day or two’ when it’s something of this magnitude being discussed.

We would also point to the reasoning expressed to justify this drumbeat and sense of urgency: “Our analysis suggests the CBD space continues to be ripe for massive overall growth that represents a multi-year boom, very little of which has actually taken place to date. The driver behind this boom is the process of mainstream adoption among North American consumers of CBD-infused products as supplemental ingredients in a healthy and vibrant lifestyle.”

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The Big Point

In this point, we can hardly argue. The CBD market is evolving from a tiny, niche marketplace populated by offbeat internet shoppers with alternative notions about ‘wellness’ to a major mass-market consumer powerhouse driven by very mainstream and often big-brand chain retail shoppers. The move from the former to the latter is like comparing an anthill to Tokyo. The scale is the important thing to appreciate.

When you hear these big numbers bandied about – “Brightfield Group shows 2019 to be the breakout year where CBD announces itself onto the grand stage for investors, with the full market for CBD products set to grow by over 900% this year,” – picture the CAGR on an anthill spontaneously evolving into Tokyo. The percentage change iterations across any sampled periodicity will be mind-blowing the whole way up the chain, but it shouldn’t be conceptually surprising. This is the birth of a brand new major industry.

So, it should be no surprise that capital is swarming to claim a seat on that fast-moving bus. Sun Kissed Industries Inc. (OTCMKTS:SKDI) is no different.

But, in this case, we are talking about a stock that has been very thinly traded in recent action, and reports a trading float of just 530k shares on OTCmarkets.com. That’s a recipe for something truly remarkable when it catches fire.

Expect big news here very, very soon.

 

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