DISCLOSURE: I own shares in World Class Extractions (PUMP on the CSE and WCF in Frankfurt/Germany), and much of the information is biased. I may buy or sell shares at any time in the future. I am not a registered investment advisor and advise you to do your own due diligence (DYODD) with a licensed investment advisor prior to making any investment decisions. This company is highly speculative and not suitable for all investors. Any errors are mine and mine alone. Thanks
Instead of a long winding jargon filled article replete with pulchritudinous vocabulary (you get the point….) I will simply borrow from other sources and summarize with my own comments in the conclusion.
1) From Leafly.com :
One of the big trends for the cannabis industry is extracted products, which are used to provide alternatives to smoking or vaping cannabis flower, including edibles and concentrates. In some markets, the share of flower has declined to 50% with these derivatives making up the balance.
Flower sales still dominate, but extracts make up the fastest growing segment of the cannabis industry.
Even in Canada, despite substantial limitations on formats of concentrates and the exclusion of edibles, extracts are a major growth driver for the LPs.
Extracting cannabinoids like THC and CBD as well as terpenes can be done in a variety of ways. Some of the more popular methods include hydrocarbons like butane, CO2, alcohol and even water. Rosin extraction is done without any solvents. Some considerations for which method to use include safety, taste, efficiency and cost.
2) From a user from Stockhouse.com:
$ISOL went from 0.10 to $2.15
$MMJ went from 0.10 to $0.81
$HUGE went from 0.10 to $0.94
$ATT went from 0.10 to $0.94
$XLY went from 0.10 to $3.35
What do all of these companies have in common?? They had a great story early on, and the right people promoting it. All of these companies are trading significantly off their highs. They haven't proven themselves, but they still shot up on the rumors before they sold off. Will they ever be great companies? WHO KNOWS!?
$PUMP’s story is just as good as the companies I’ve noted (IMO better). They only listed in March and recently merged with Quadron. They are still very new to the public and haven’t really started to promote themselves yet. If you don’t think a couple good news releases will give this stock the momentum to hit 50+ cents, you haven't been around this sector long enough. What matters in this sector is: Market Cap, Cash (buying power), P/B ratio, and most importantly A GREAT STORY. So what is the story behind $PUMP????
TOTAL ASSETS= 70.1M ( 35.8M DEBT)= 34.3M equity
TOTAL ASSETS= 64.7M (9.9M DEBT) 54.8M equity
TOTAL ASSETS= 32.1M (NO DEBT) 32M equity
$PUMP is a large scale extraction company and the timing couldn't be better with edibles legalization this year. We also just teamed up with Rosy Mondin, one of the most powerful women in the industry. She is brilliant, a lawyer, and with the woman’s movement in full swing, definitely a huge asset. She will help $PUMP with securing contracts.
3) Due Diligence Content:
(i) Primer Video: https://www.youtube.com/watch?v=tmuLvGxjtbs
(ii) CEO Interview: https://www.youtube.com/watch?v=O0c6N1KVFGA
4) Technical Analysis:
Twitter thread with Technical Analysis from IPO to date: https://twitter.com/ndaloisi/status/1111458662135095296
5) My Comments:
I have worked at Bay Street as a Risk Analyst for the top financial institutions in the country but have been a trader/investor since late 2016 presently doing this full time. I enjoyed the fruits of the 2017 bull market but since then I have firmly been of the opinion that post 2017 the trading dynamics of the market has been geared more to suit speculative swing traders versus long term investors and that is a sector agnostic viewpoint. Some of the most accredited of investors I speak to begrudgingly admit to the same.
My trading thesis has been beneficial for the health of my swing trading account as well as I am up more than 400% for the year:
For my swing trading account my positions last weeks to months and have not lasted more than 8 months at most. Other than swing trading I also day trade for consistent income and have certain contrarian long term positions as well.
My personal bullet point thesis for $PUMP is simple:
- Trading close to financing prices with fully diluted 595m following the merger with $QCC
- $20 million in cash. ZERO Debt
- Industrial Extraction model focusing on Hemp/CBD in Canada/USA
- World leading capacity
- Multiple contracts pending announcement
- Same capital markets team that drew interest that moved $HUGE a 1.3 billion float from .08c to 90c
- Majority of paper (almost 50%) issues at $0.1265 (200M for First Republic)
- Warrants and options $0.11-$0.13 (roughly 48M in total)
All those points indicate that the treasury and technology is locked in and the time is ripe to furnish the capacity with contracts and I believe that coupled with seasonal cannabis sector fall rally will be the catalyst for improved share price optics.
One eye sore that sticks out for many is the large number of shares outstanding but like I jokingly say with the right mix of promotion and fundamentals “pigs can fly” and point to the impressive $CANN stock chart and also to my own personal trade on $RNX last year from .165 to $1+ https://ceo.ca/rnx?0c0980ad4fe3 and of course $HUGE as well.
As always, do your due diligence and trade/invest smartly.
You can follow me on https://ceo.ca/@dandan by subscribing and adding me to watch list for timely notifications. I am involved hands-on with ceo.ca private chat rooms and post actively on public boards too. Some other traders/speculators/investors on ceo.ca that command my attention in no particular order:
There are many more great posters so due apologies if I forgot any of you.
Lastly a big shout out to Tommy, Vaughan and Murat for working tirelessly to keep ceo.ca a great place for traders/speculators/investors to commune. No other platform comes close and CEOPRO Level 2 real time data is as good as it gets in my opinion.