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6. Revenue to Low Market Cap strategy
There is not much to add to this industry leading strategy. What has changed of course is the need to increased due diligence to ensure you are not selecting a company that may on the decline.
7. M&A Candidates
It is strange to see household names purporting to be
industry experts and particularly on the investment side only
now recognizing that there will be increased mergers and acquisitions, failing companies, new companies, and as we read earlier, the potential for short term over supply in a few years combined with the possibility of cannabis being reduced to a commodity. This once again is Consolidation Curve 101 and how any Ecosystem evolves. Our readers have been prepared for this for over two years. I fully expect to see a multi company merger announcement before long. The closest to date may be DOJA with Tokyo Smoke to form HIKU Brands and before long HIKU Brands announced its M&A with WeedMD. That is still a sequential order of events however.
8. Reliable sources …
u Ask your source if they have companies as ongoing clients.
u Some paid promoters and influencers have no problem flaunting right in their paid commentary that they own options, shares, rights, or are directly paid. That does not discount the accuracy of any facts they are presenting, but rather alerts you to the potential for a conflict of interest.
u Use the notes and other filings to get the true deep dive and picture of the company because news releases and paid editorials tend to present a slanted view only.
u Use SEDAR, SEDI, IIROC, and the stock exchanges as often as possible.