There s A Few Hidden Breakout Stocks in this Crazy Marijuana Bull Market

There's Still A Few Hidden Breakout Stocks in this Crazy Marijuana Bull Market

  • On Oct. 17, Canada lifts the bar on adult marijuana sales, unleashing a potential $5.7 billion legal marijuana market next year 
  • Investors expecting the event have thrown so much money at Canadian MJ manufacturers their stocks are currently selling at 120X earnings or higher, and in the event of one lucrative company 1,900X earnings.   But most pot stocks are currently selling at valuations to thud that is likely loudly when they fall back to earth. Canopy Aphria and increase, for instance, both take market caps that are larger than the marijuana industry–such as tokers.
    There are still a few deals left, though.   These are the handful of stocks that investors have not followed closely enough. VIVO Cannabis Inc.TM (TSXV: VIVO) (formerly ABcann Global) has a set of premium brands across medical and recreational, with large production capacities. Supreme Cannabis (V: FIRE) is another.
    Then, there is Choom (CSE: CHOO; OTC: CHOOF), which came to the industry late last year and has stayed beyond the frenzy. It is.    
    In fact, Choom already has the confidence of Canada’s best MJ businesses. Aurora Cannabis has invested $7 million earlier this season, and VIVA BCann has inked a supply agreement.
    So where are the normal investors?

    Cracking Retail Wide Open

    Every market has its oddities, and in this one, Choom stands out. It’s”only” up 496% in the past year compared to 1,009% for HEXO Corp; 1,193% for Namaste, and 4,152% for Tilray. 
    The other big gainers worked the PR machines to make more noise… and sometimes they had been a lot more explicit about their plans. Tilray procured a well-publicized Nasdaq listing then got much-touted FDA approval to export cannabis to the US for research. The market reacted to repeated news releases like the company had personally cured the world’s diseases. Namaste’s e-commerce model set it to the ultra-rich accessories market with sales of other tools and vapes, pens.
    Knowing what every company”does” has become the secret to big gains in pot stocks.
    Choom has had a plan from the beginning that was somewhat harder for investors to warm –“acquire and develop retail and growing assets.” Well, who was not? Even the admirers of Choom have to admit that doesn’t sound very sexy, and until recently, it was clear what it would mean.
    But today, Choom is on the brink of establishing a massive footprint in the retail industry. It can point to a fifth place in the future that will be even bigger and four growing sites so far. There’s a lot of good information in the pipeline for investors to discover.

    Choom Focused on Fun Before Investors Were Ready

    Another subtle point that shouldn’t be overlooked in Choom’s silent beginning may be subtle, but it probably counts for something. That is Choom’s title and”good times” message, which spoke to its adult-market intent.
    The Canadian bud stocks started out entirely differently from US companies–they were all legal entities, approved and licensed by Health Canada. Seized and they appealed to investors who didn’t need to worry that the firms they backed could be raided any time, a fate that is still possible for US MJ companies. As if it to highlight this respectability, Canadian company names are extremely controlled: Emerald Health, Maricann, Organigram, Emblem, CannTrust…. 
    Then there was Choom–named after the”Choom Gang” of friends who smoked pot, surfed and lived for the good times, Choom was not a medical stalwart. It always looked forward to the market.
    At last, with Canada officially opening adult-use bud on Oct. 17, investors are prepared for Choom.

    Choom Has Coast to Coast Coverage In Sight

    up to now, Choom has three growing centers all in late-stage licensing approval and a fourth site under offer. The absence of licensed space meant once the likes of Aphria and Canopy Growth were on everyone’s radar that Choom was not making news. But now, the approvals of Choom are in very late period. Approvals should come within weeks.

    Phase 1 of its construction plans entails developing 37,300 sq. ft.  of indoor growing space in British Columbia capable of producing 3,700 kg dried cannabis each year. In Phase 2, when it will add facilities on Vancouver Island to the BC operation, Choom expects to expand to 68,200 sq. ft.  that can produce 6,500 kg of dried cannabis annually.

    At a wholesale price of $2,000 per kilo that means $13 million in earnings with all four farms running. That’s a projection. Supreme Cannabis Co.  prices its product at $6-$7 per g, three times as large [I]. Canopy Growth, selling at $8 a gram is four times as high. So $2,000 per kilo ($2 per gram) is an exceedingly safe benchmark[ii].

    Farther out, Choom intends to include 700,000 sq. ft. of indoor and greenhouse space in British Columbia and it’s another 120 acres in Saskatchewan lined up.

    But it is the retail plan that makes Choom particularly appealing. Not just for investors….   That is also the reason that rsquo & Canada;s second largest MJ company, Aurora Cannabis, just took a big stake in Choom.

    Choom has established 52 locations in British Columbia, Alberta, and Saskatchewan so far. It recently applied to Manitoba for a permit that it expects to have in hand when mature marijuana sales begin on Oct. 17.

    The Aurora Big Deal

    Investors might have missed Choom, but the industry and accredited investors who have been busy in the background are well aware of its potential.    Then by Aurora Cannabis, its increase that was $10 million included a hefty $ 7 million investment in June. Aurora holds about 6% of Choom stock.
    Aurora has a history of buying out good prospects. So, there is a buyout a potential with Choom but it is not the important point here.
    Choom’s deal with Aurora is probably exactly what Aurora says it is–a tactical position. Choom has planted its flag in the provinces and is a sure-shot to acquire rights in Manitoba, Ontario, and Quebec’s provinces quite soon. The company intends to have a coast-to-coast presence and is well on the way . Aurora would like a piece of that.
    Investors should consider Aurora’s move a high compliment from an industry leader. Both companies connected through Aurora’s Aurora Pro platform, which provides services to the business [iii] and allows Aurora let them enter the market and to support craft growers. Aurora invested in Choom having an insider’s eye.
    Choom has high upside potential, strong contracts, an ambitious and growing retail footprint and large votes of confidence by industry insiders. For the moment, it has a price.



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