The Best Way To Play The CBD Market
June 06 2019 - 1:05PM
InvestorsHub NewsWire
The Best Way To Play The CBD
Market
June 6, 2019 --
InvestorsHub NewsWire -- via Goldman Small Cap Research
--
Rob@GoldmanResearch.com
CBD-infused product
sales have been strong this year and demand is high. Which company
will come out on top in terms of sales growth and stock price
appreciation? Puration Inc. (OTC
– PURA – Speculative Buy). Here’s
why.
FAST
FACTS
- Demand Is So Strong,
PURA Opened a
2nd Plant. PURA
has been contending with an enviable problem; demand is high and
growing but production has not kept up. The new capacity
utilization should essentially double its previous production
capability.
- Despite PURA’s light
trading volume of late, a series of company initiatives and
industry events serve as catalysts to drive PURA’s volume higher
and the shares back to its 52-week high of
$0.25. Depending upon the
timing and magnitude of the aforementioned events, we
believe that these shares have the potential to reach the $0.35
mark.
- PURA Is the Best
Positioned CBD-infused
Provider. The bulk of PURA sales
are in the South/Southwest regions. This is key because some
southern states are designing their own regulatory guidelines
to foster sales, potentially bypassing the FDA in case they drag
their feet.
- The NOUV Dividend
Transaction Is a
Sweetener. In
our view, upon completion, the NOUV dividend adds meaningful value
to PURA’s stock. Based on the current market cap, we
believe PURA’s current share price does not reflect this hidden
value.
- Sales Estimates Likely
Too Low; M&A on the Way? Given the big
increase in production capacity, sales projections for 2019 could
be low and sales growth next year could be further bolstered by
M&A—which would leverage PURA’s early mover infrastructure,
sales, and its current formulation advantages. A critical mass of
sales from M&A could in turn make PURA a future buyout
candidate,
What does this all
mean?
These series of
company initiatives and industry events should serve as catalysts
to drive PURA’s volume higher and the shares back to its 52-week
high. Depending upon the timing and magnitude of the aforementioned
events, we believe that these shares have the potential to break
well above it.
See Goldman Small Cap Research’s full report on
PURA.
Goldman Small Cap
Research has also recently published research reports on Zenovtek
(ZVTK),
and Nouveau (NOUV).
Disclaimer
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disclosures related to all stocks referred to or mentioned in this
email that are profiled in The Goldman Guide, any
Opportunity Research (sponsored) reports, updates, alerts,
podcasts, or in our Market Monitorblogs, or under the
Marble Arch Research , Inc. banner.
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opportunities. Any opinions we may offer about the Company are
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has been compensated $3500 by the company for sponsored research
and distribution services. Since 2018, GSCR has been compensated a
total of $13,500 by the company for sponsored research services,
and a fairness opinion.
Rob
Goldman
Managing Director,
Research
Goldman Small Cap
Research
SOURCE: Goldman
Small Cap Research
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