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A strategy where investments are made in companies that are providers of necessary equipment for an industry, rather than in the industry's end product. A pick-and-shovel play, in practice, could be within the oil industry; an investor would purchase stock in a company that manufactures seismic data equipment that exploration and production (E&P) companies need to find new oil and gas deposits, rather than on the E&P company itself.
“During the Gold Rush, most would-be miners lost money, but people who sold them picks, shovels, tents and blue-jeans (Levi Strauss) made a nice profit.”-Peter Lynch
This is a great investing principle that most people tend to overlook. When you identify a booming industry or stock, don’t forget to look at the companies supplementing that industry. For example, when Apple Inc. (AAPL) became successful with the iPhone, a lot of other companies supplying them with technology and raw materials also made huge money. With EnWave we can make money from all weed producers instead of competing against them.
Cost-Saving, Weed-Drying Machines
a "Pick & Shovels" Marijuana Play
Written by: Trent Blair
TSXV:ENW; OTC:NWVCF; FRA:E4U.F
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Alefia Health Inc. (CSE:ALEF; OTC:CAMDF)
Per Investing.com at time of Writing: STRONG BUY
ALEF is an LP with its HQ in Markham and its facility in Scugog Ontario. Through an M&A, it merged with Cannabo Medical Clinic (CMM).
- CEO is Julian Fantino and the CEO of CMM is John Philpott.
- Because this is a new listing and the stock of CMM was halted, there is not a lot of news other than the obvious – if you agreed CMM on its own was a value priced stock then what is CMM + an LP with prominent figures at the helm worth?
- See also the investment by Quinsam Capital later in this case study …
There is nothing wrong with following the influencers (paid stock promoters), bloggers, and those that mistake popularity contests for serious hard work but never lose sight that those sources are guided by self interest or some other metric.
Please enjoy this month’s feature case studies on Alliance Growers Corp and on Organigram Holdings Inc. As always, no direct compensation was received or offered. The companies were not aware in advance of these case studies. No options, shares, etc were offered for these case studies. In other words, no compensation or request was offered or made. Case studies are academic exercises for discussion purposes only and in no way should be construed as investment or financial advice.
As always, please remember that all content (cover to cover) is to raise an awareness of companies, strategies, and industry direction & opportunities and in no way is intended as investment, financial, legal, or tax advice. No matter the source whether it be within or without CannaInvestor Magazine, always assume a contributor may own shares of a company appearing somewhere within the content. Until next time, invest long and prosper.
CannaInvestor (regardless of font and case) is a registered Trademark and the weedman characters are equally protected and additionally through registered copyright as artwork. Use of the name CannaInvestor is strictly forbidden. Reproduction of any kind pf the weedman character or its reasonable likeness without the expressed written consent of Louis Kyron is strictly prohibited.
COMING SOON!