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I trade mainly on sentiment & leave the more technical aspects to other Wolves, but I do chart. I have a group of traders that pool resources & $$$ to make the #Wolf-Fund. My persona on twitter @wolfofweedstreet only discusses Marijuana related stocks. I Am the Wolf of Weed Street and... More
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  • PR's For Show & Real Companies That Grow: A Tale Of A Few MMJ Stocks  16 comments
    Jun 23, 2014 12:40 PM | about stocks: TRTC, ATTBF, FITX, QEDN, TWMJF

    ***This is purely my opinion and not in any way, shape or form an endorsement to buy or sell any of the mentioned securities. It is merely here to be cross referenced whenever possible***

    We have all heard the whispers of companies getting ready to cross that mythical "Green Line" to start growing weed or "flowers" if you want to sound like a snob. The problem thus far have been plenty; One can chalk it up to state bureaucracy, no execution of Company vision, inability to raise capital, etc etc. While there has been movement on some fronts with a few of the OG's like TRTC in the medical Marijuana sector, for the most part it has been a bust or an outright attempt to blow smoke up a shareholders a$$. Even so new companies are emerging. GBLX (the story still unfolding & still needs serious DD) seemingly came out of no where to challenge TRTC in Nevada so to speak as publicly traded companies getting permits. QEDN a company I will get to later is flying under the radar big time & to my knowledge is the only publicly traded company with Weed growing in the United States.

    While there are many companies I like in this sector there are even more that I do not, but all are arranged in a 4 tier system. I won't give you some long winded & witty illustration of each tier, but they go as follows. Tier 1 is where I will take a nice sized position to a hold and accumulate with some minor trading with maybe 25-30% of my core for special breakouts etc. Tier two I would dip the tip or just trade in and out of on pure Momo and wait for the company to "say what they mean and mean what they say." Tier 3 is what I call "Dead Money," which means they will continue to slide for a while, remain stagnant & inevitably suck the life out of holders. Tier 3's are stocks people marry and often think will turn the corner, but fail to see fundamental issues with the stock like share count or business model that can be executed in a real world of set parameters. Tier 4's are summed up with two words and usually begin with a four letter word and ends with the word "NO." Some of these tiers border each other as you will see below, but these aren't absolutes and each case is different as many variables can influence any situation. As such investors should always adjust accordingly based on risk levels they can endure.

    In Canada you have a few companies that are either growing like ATTBF (Tier 2), Tweed (Tier 2/3) or trying to grow weed like FITX (Tier 3/4). There are other notable companies in Canada doing some interesting things like SPRWF (Tier 2) & CANLF (Tier 2 mainly, but 1 could happen sooner than later), but these two need their own instablog as well as more extensive DD.

    With regards to the Canadian plays I would like to focus on Tweed & FITX as if I mention ATTBF in the same paragraph I might get shot.

    Word on the street is that Tweed is having some major issues with their facility. If the whispers are true they are hemorrhaging money and having serious issues with their crop. To my understanding they are going through master growers like Leonardo Dicaprio goes through Victoria Secret models. Yes they are growing, but just growing a crop does not justify their current market cap of $111,000,000 in my eyes. Their facility (an old Hershey plant) is not being used at full capacity. Currently I'm hearing they are only using about 1600 square feet to grow. I am also hearing that they only have 1000 clients, but were expecting something like 10,000. There's also the 4.6 million shares that GMP Partners have as part of $15m in financing that will become unrestricted in 2 months at $3.20 a share (Tweed closed at $2.78 Friday 6/20).

    FITX is a saga that many are familiar with and many people have covered it much better than myself like Chris Parry from Stockhouse.com (here's an article http://www.stockhouse.com/news/newswire/2014/05/16/medical-marijuana-update-creative-edge-fitx-ceo-answers-detractors). The scoop is that there are literally hundreds of millions of shares becoming unrestricted each month, a Canadian License that is non existent at the moment and a facility that will take millions of dollars as well as municipality approval for power/water/ETC that will be months out. The thing we have noticed and tracked in our chat rooms at www.wolfofweedstreet.com is that for the last month at the beginning of some days and the end of those days there appears to be a little sell offs. PPS dips early morning then gets bought up. If you look at a 3 month chart there have been a few big sell-offs as you can see by the image below.

    Now this could be normal profit taking, but it could also be the shares that are becoming unrestricted per month being sold by insiders as seen below. Its not unreasonable for them to take profits regardless; that's why people become investors in the 1st place.

    In the United States we have TRTC which has just been given a special use permit for Medical Cannabis cultivation & production. The great thing about TRTC has been that they have revenue coming in from Edible Gardens. They also have a much beloved CEO in Derek Peterson who continues to execute the business Model. I remember when I first heard about TRTC last August and everyone was saying that by New Year they would be growing, but that's ok because the longs over there are realists and nothing moves as fast as the investment community wants it to. Seeing the follow through is important to investors and now discussions that have been had a year ago are materializing.

    If that seemed like I was going off on a tangent my point is that licensing, bureaucracy, red tape, and funding all take serious amounts of time. Wouldn't it be great if there was a publicly traded company already growing MMJ here in the United States that we wouldn't have to wait for? What if I told you that there already was one? This brings us to QEDN.

    QEDN recently acquired Emerald Med Farms, Inc. as its wholly owned subsidiary as a marijuana cultivation company

    http://www.emeraldmedfarms.com/

    Emerald Med Farms, Inc. has a marijuana crop in the process of maturing that is expected to be ready within the next 3 to 4 weeks for harvesting. The current crop is estimated to yield between 3 and 4 pounds per plant and, upon the successful harvesting of these strains of marijuana, the product will be distributed through a Cooperative of California medical dispensaries. The was announced on June 4th in this PR:

    http://www.otcmarkets.com/stock/QEDN/news/QED-Connect-Inc--Completes-Filings--Growing-First-Marijuana-Harvest?id=82089&b=y

    The marijuana plants are from two strains: 1) The OG Kush Strain which was originally from Northern California and has quickly become known around the world for its distinct aroma and strong effects. The OG Kush strain is one of the most popular medical marijuana strains grown and sold by dispensaries today. 2) Sour Diesel Strain which is named after its pungent, diesel-like aroma. This fast-acting strain delivers energizing, dreamy cerebral effects that provides stress, pain, and depression relief and provides long-lasting relief making it a top choice among medical patients.

    Emerald Med Farms, Inc. is registered as a Domestic Corporation with the state of Nevada as can be confirmed within the NV SOS database:

    http://nvsos.gov/SOSEntitySearch/CorpDetails.aspx?lx8nvq=H69RZmxfGfuZyLq%252bxISP8w%253d%253d&nt7=0

    Emerald Med Farms, Inc. will be dual registered within the state of California as a Foreign Corporation of which its registration number is expected to be received any day.

    QEDN has recently reduced its Authorized Shares down to 600 Million from 1 Billion while also amending their Articles of Incorporation to where their Series A preferred shares will no longer have conversion rights to common shares therefore eliminating a potential 2.9 Billion shares worth of dilution:

    http://www.otcmarkets.com/stock/QEDN/profile

    Another important catalyst is that QEDN has initiated the process to have the DTC Chill lifted. Usually when DTC chills are lifted it is a very big driver for the stock. The fact that its being lifted for TD Ameritrade (biggest online broker) means a whole new group of potential buys can join in. One of the things I like most about this company is that they do not just throw PR's out just because they can. Case in point was the recent A/S reduction as seen above as well as their status becoming current on the OTC and acquisition of Emerald Med Farms which started as a letter of intent. In each case they waited to release the information as they did not want to rush the process. In each case they did what they said they were going to do which is very rare these days in the OTC. I'm sure more people will begin to cover QEDN, but one last thing to note is that since April 1st while the MMJ downtrend really got underway their have only been a handful of companies that have done well. QEDN is up 196% since April 1st, the chart is below.

    http://stockcharts.com/h-sc/ui?s=QEDN

    The Point of this instablog is to point out that there is intrinsic value in company's that do what they say and say what they do, weigh variables & tie them to risk. There is value in companies that don't PR every time they make a positive move just because they can. In the end its the OTC which is highly risky & very volatile, but every so often companies emerge to surprise the public while others can't seem to pull it together. PR's need to be read thoroughly as companies are crafty with language. They say things like "we have to stop taking on new clients" which some people take as we have too much demand and not enough supply, when the reality is they don't have that many clients they can service with their dwindling supply. You get the point etc etc etc.

    For myself I am staying away from companies with too many shares and too many question marks. I am focusing on companies that will benefit from volume coming back to the OTC with catalysts like the July rollout of recreational Marijuana in Washington as well as the states now jumping on board with the future they can not stop. As always do your DD and only invest what you're not afraid to lose. The stock market is not a magic ATM use caution, limit your risk and DO NOT go ALL IN on one stock, that's the quickest way to lose your wallet/mind. All the best-

    The Wolf

    Stocks: TRTC, ATTBF, FITX, QEDN, TWMJF
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Comments (16)
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  • Econ Student
    , contributor
    Comments (197) | Send Message
     
    My favorite out of these is (OTCPK:ATTBF). They have a good strategy. The worst one of these is (OTCPK:FITX). Overvalued with a tool for a CEO and delay after delay on their business plan. Not to mention way to much dilution.
    23 Jun, 01:28 PM Reply Like
  • John Mazza
    , contributor
    Comments (3) | Send Message
     
    Regarding FITX, your logic seems accurate. I got suckered into this several months ago when their license was "days away."

     

    It doesn't seem that the company's PPS is moving in the right direction. Sad for those investors who have more at stake than I do.
    23 Jun, 02:06 PM Reply Like
  • Carefiesta
    , contributor
    Comments (3) | Send Message
     
    Well maybe you should do a little bit more of research on FITX, I advice you to read this words from:
    "Bill Chaaban, FITX CEO: I applaud all of you arm chair critics who always find a criticism. In a very short time FITX has built out two world class sites and has called Health Canada for inspection. We have raised $21.1 million USD from private investors with no collateral. We have added two world class investment bankers, one of which is the top private regulator in the world. The other was the VP of JP Morgan Chase with 29,000 employees reporting to him. He then became the President of Fidelity Investments with 34,000 employees reporting to him. We attracted two world class physicians; one of which has received two NIH 10 year merit awards and a McArthur foundation award and is most likely up for a Nobel Prize for his groundbreaking research. He also ran clinical studies with approximately 250,000 patients participating. The other has received 8 NIH grants for Research. We have attracted and retained Computershare and Deloitte to achieve our goal of an uplist to a higher exchange. Maybe if one were to contemplate the achievements thus far and ask themselves what part of the story has not been told that has attracted such talent?

     

    Bill Chaaban, FITX CEO — Oh wait … that would take an unbiased opinion and some intellect. Sorry that most of you have been most likely burned in the past by poor investment strategies or advice… I continue to give 100% to FITX and its shareholders.
    Posted just now
    Bill Chaaban, FITX CEO — Let me clarify… we have a commitment of 21.1 million USD and have raised almost half thus far."

     

    That being said from the CEO, I will leave your not too smart article for new investors who believe anything coming from you and sell their shares while I buy them with confidence for a company that has big visions and big potentials.
    23 Jun, 02:14 PM Reply Like
  • The Core
    , contributor
    Comments (11) | Send Message
     
    Two words for you.

     

    Confirmation Bias
    23 Jun, 10:45 PM Reply Like
  • tudatm
    , contributor
    Comments (11) | Send Message
     
    Unfortunately Wolf of Weed Street via his twitter campaigns of the past attract nothing but shorters on any of his plays he makes public in the space.

     

    Nobody has confirmed this is yet an MJ company. I would like to have not only Wolf but another person verify this. QEDN has a very sketchy past.

     

    With regard to FITX, you have to be delusional to believe that this company is worth $200M currently. They are built for future success, but they are not anywhere near that currently.

     

    Overvalued to say the least.
    23 Jun, 02:49 PM Reply Like
  • jerryjamal
    , contributor
    Comments (4) | Send Message
     
    FITX is the best LONG-TERM play in this sector. It wont happen overnight, as they are doing a lot. All details to soon be released. Impatient stocks never rise.
    23 Jun, 05:48 PM Reply Like
  • jdogg69
    , contributor
    Comments (37) | Send Message
     
    Fitx hasn't done bad but has overpromised IMO like in March they acted like they would have a crop going by end of April. Well I knew that was crazy cause I live in Mi. and the ground still was frozen rock hard and covered with snow. I told some invested that in maybe a yr. they would have their first crop and they were like "no way". I still think if you say go by say a 2-3yr timeframe you could do quite well. So as a long term hold provided they get their license they would be a good play. However I see no reason to buy their stock in the short term.
    23 Jun, 05:52 PM Reply Like
  • Smart guy 1
    , contributor
    Comments (8) | Send Message
     
    The only smart play in the entire MMJ sector is FITX. They have the best plan, A far better management team then many co-operations 20 times its size. They Have a very large facility that is spring loaded to be a massive success.
    If you're not in this one now, you're are soon going to wish you were.
    23 Jun, 06:07 PM Reply Like
  • WolfofWeedStreet
    , contributor
    Comments (41) | Send Message
     
    Author’s reply » sounds like most of you guys should just keep buying FITX, unless I am wrong about any of the arguments I make.
    23 Jun, 06:15 PM Reply Like
  • Long PennyStocks
    , contributor
    Comments (52) | Send Message
     
    I don't want to say which is the worst but I will say which, in my view, is the best of them all: ATT(BF). Once licensed, it will not only provide any investor with the advantage of having at least 5 independent revenue-generating divisions, but with a world-class management running the show, a reasonable A/S and O/S share count and the advantage of being primarily, a Canada-based company with only an "ADR" floating in the United States OTC market. Hence, the stock is better positioned [in relation to its US counterparts] in front of potential SEC trading-halts for operating in the [still federally-illegal] MMJ market
    23 Jun, 07:05 PM Reply Like
  • unclewoo
    , contributor
    Comments (62) | Send Message
     
    ATTBF Yes, FITX not only no, but Hell no.
    23 Jun, 07:40 PM Reply Like
  • Future8Jerry
    , contributor
    Comments (6) | Send Message
     
    I agree with the above Pro-FITX comments as well. FITX represents perhaps the biggest and best opportunity to get in on the ground floor of a future corporation. Or do you recommend chasing stocks? In addition to the above where else can you find such a transparent CEO ---with the ability to knock the ball way over the fences?
    23 Jun, 09:18 PM Reply Like
  • robswiedals
    , contributor
    Comments (3) | Send Message
     
    Hey wolf, what happened to your previous 'tier 1's:
    Frtd...your big unicorn...from 0.04 to 0.001. I have deep symathy for your followers.
    Spli/vpor...'anything under 0.30 is a bargain'...oh yeah!?...now trades at 0.055.
    Erbb...the pick you 'trimmed' into your following...now at 0.02.
    Anyone reading this article needs.to look up the recent history on those 3 tickers.
    23 Jun, 10:45 PM Reply Like
  • robswiedals
    , contributor
    Comments (3) | Send Message
     
    Hey wolf, in what tiers did you rank the following:

     

    ERBB
    SPLI/VPOR ('anything under 0.30 is a bargain')
    FRTD....seriously dude....this was your big unicorn. What's that trading at nowadays?
    *All lost 70% - 99.9%
    23 Jun, 10:45 PM Reply Like
  • WolfofWeedStreet
    , contributor
    Comments (41) | Send Message
     
    Author’s reply » Myself and many others thought FRTD could be a unicorn based on 2 major things...

     

    1st: The share reduction they said they were going to do
    2nd: The Crowd funding partnership with Primarq

     

    We were told the deal was nearly done, we learned otherwise later.

     

    Erbb: I set a target of .10 early on and I got out at .108

     

    VPOR has been raped by MM's, if you look at what they are doing financially with revs I still think its a bargain. Remember I 1st alerted it at .0043
    24 Jun, 12:55 PM Reply Like
  • User 24577733
    , contributor
    Comment (1) | Send Message
     
    The emerald farms website has pictures of the current crop. Sorry. Not 3 to 4 pound plants and not close to ready. They don't have buds on them yet. They are in greenhouses and unless they are doing light dep(forcing them to bud by blacking out the greenhouse with a huge tarp every day)they won't be ready until fall. Also, outdoor and greenhouse weed is dirt cheep in CA. Under current CA law you can not profit off medical marijuana. You can only pay directors a reasonable salary which most people cap at 100,000 to 150,000 dollars per year. So how is that supposed to increase pps? I would love to know.
    24 Jun, 11:14 PM Reply Like
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