Canadian CANNAINVESTOR Magazine May / June 2018 | Page 253

271

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

253

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 …

The above hits not only on marijuana but also on Industrial Hemp and a proprietary high yield CBD strain. Yes, an investment is necessarily prospective and speculative in nature but given the market cap, the assets, and the license application status … ACG may be one of the last low price hidden gems still out there. Toss in high yield CBD and industrial hemp as icing. Indeed, front and centre of their home page reads:

“Building a diversified global cannabis company focused not on where the market is today, but where it is going.”

Their proprietary tissue culture plantlet process reduces the crop life cycle to potentially under 8 weeks. One does not need to be an Accountant to know the faster one can get to market and sell its inventory, the potentially greater the margins could bell things being equal.

For those of you that are eligible Investors, there is currently a Private Placement open at about market price (CLICK HERE).