1933 Industries Is Capitalizing On Two Of The Most Lucrative Markets In The United States

1933 Industries Is Capitalizing On Two Of The Most Lucrative Markets In The United States

Earlier this month, we highlighted 1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF) as an attractive play on the US market. Following a major development in California, we are even more bullish on the opportunity and this is a company that our readers need to be aware of.

During the last year, 1933 Industries has been nothing short of an execution story and the management team has done a fantastic job at expanding the business. The company is highly focused on some of the most attractive verticals of the cannabis industry and has leverage to a number of the most exciting growth markets in the US.

2020 has been a tough year for the US cannabis company and the recent pullback has caught our attention. Although 1933 Industries has substantially improved its value proposition, the shares have been trading lower with the cannabis sector and this is an opportunity that is flying under the radar.

A California Growth and Execution Story

Last week, 1933 Industries reported a major milestone and started to harvest its first cannabis crop in California. This represented a significant accomplishment and the company will use the cannabis for both its proprietary brand, Alternative Medicine Association (AMA) as well as for its licensing partner, Blonde Cannabis. Specifically, the harvest will be used for AMA premium packaged flower, pre-rolls and Blonde products. We are favorable on the amount of value that can be created through the sales of these products and believe that this is just the start of something substantial in California.

Last year, 1933 Industries became highly focused on the California market and we are impressed with how the management team was able to execute on this opportunity. The company is working out of a state-of-the-art facility that is 20,000 sq. ft. that has space for cultivation, extraction, manufacturing, and distribution.

In early March, 1933 Industries expects to start selling AMA and Blonde products in California and we will keep an eye on how these products gain traction. California is the world’s largest cannabis market and we are favorable on the leverage that 1933 Industries has to it. Over the next year, we expect to see the company report strong growth and for the California asset to play a key role in the growth of the business.

With regards to the California market, 1933 Industries is not solely focused on the tetrahydrocannabinol (THC) opportunity. The company has established local manufacturing for Canna Hemp, its proprietary CBD wellness line. 1933 Industries plans to sell Canna Hemp products to dispensaries and we expect this vertical to be an area of growth for the business. The company should make a splash in this market after the initial run of 30,000 units of full spectrum CBD Canna Hemp™ products passed mandatory state compliance testing.

A Highly Discounted Long-Term Growth Opportunity

Going forward, 1933 Industries is well positioned to improve the fundamentals of the business and we believe that the market does not fully appreciate the amount of value that can be generated through the expanded operation. With two capital projects now completed, the company will be able to control input materials, lower costs of production, and increase revenues and margins. The management team is focused on bringing the business down a path of profitability and we are favorable on how the company can better control costs on a going forward basis.

When we first started covering 1933 Industries, it was only levered to Nevada and was focused on increasing the size of its footprint in that market. The company has executed on this plan and moved into a much larger production facility in 2019. The state-of-the-art facility is going to play a key role in the growth of the business and we are bullish on the long-term opportunity associated with this asset.

Although 1933 Industries has come off its February lows, the company is trading at a substantial discount to its peers. On top of this, the company’s valuation metrics are attractive at current levels and we are favorable on the risk-reward profile. 1933 Industries has been impacted by the recent trend in the cannabis sector and this is an opportunity that our readers need to be aware of. The company has substantial growth prospects, has enough capital on the balance sheet to execute, and is led by a management team that is focused on creating value for shareholders.

If you are interested in learning more about the US cannabis company, please send an email to [email protected] to be added to our distribution list.

Pursuant to an agreement between StoneBridge Partners LLC and 1933 Industries we have been hired for a period of 180 days beginning January 15, 2020 and ending July 15, 2020 to publicly disseminate information about (TGIF) including on the Website and other media including Facebook and Twitter. We are being paid $5,000 per month for a period of 6 months. We own zero shares of (TGIF), which we purchased in the open market. We plan to sell the “ZERO” shares of (TGIF) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (TGIF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.


Share - Facebook

Share - Twitter

Authored By

Anthony Varrell

Anthony Varrell is Managing Director of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Wed, 04 Mar 2020 12:39:12 +0000

Posted in: Investing

Comments are closed.