The McKenzie Speculator: I should have bought (BLANK)
January 12, 2017
I should have bought CanLabs, Inc. (CANL) when I had the chance. I looked at it for years and never pulled the trigger. I won't another chance.
CANL went from .25 per share up to over .50 in a couple days time. On the boards investors are talking a reverse takeover, and the Colorado Secretary of State’s records show the corporation has voluntarily dissolved. The smarts are saying management is holding their shares and own a large percentage of the company, and individual investors may do well to hold and see what happens.
CANL, of course, must be compared to Digipath, Inc. (DIGP), and of the two The McKenzie Speculator would have invested in DIGP over CANL, hands down, no question. DIGP stands at this writing still at a relatively palatable .19 per share on a float of 15 million shares, the latter being truly investor friendly. They also promise to turn around a test in 48 hours, which is quick. Didn’t buy DIGP either, at least not yet, still looking at it.
One really shouldn’t talk about CANL and DIGP without at least giving a mention to Signal Bay, Inc. (SGBY). And moving onto more promising issues …
SGBY’s float is more like a “share tsunami” and it’s just not truly speculator investment grade at an astounding 483 million shares. Talk about dilution, SGBY will be lucky to see a dime any time soon, at which point the market cap will be a hefty $50 million. DIGP and CANL shares will each be well over a dollar at a similar market level, showing the logic of pinning the third place medal on SGBY.
WHO AM I AND WHY SHOULD YOU CARE?
I am individual investor. I have traded individual issues off and on for over 30 years, as well as a self directed IRA. I must rely upon the funds in my 401k to feed me, so my investments there are conservative, almost cowardly. There I am pathetic and dreary.
In The McKenzie Speculator Small Cap Research Roth IRA, we laugh at risk. We eat risk for breakfast. There is no penny stock too small. Give us your small caps yearning to be big. Here we seek mighty mites, although often hearing a “clank” at the sound of the closing bell.
The investments discussed here are speculative small cap stocks. Penny stocks that no legitimate broker or advisor will discuss and will never advise you to buy. It is here in the OTC boards that I dwell. I might throw some lunch money -- $30 or $40 -- on a marijuana real estate company where it appears that someone ran off with the stash and cash, if the balance sheet looked okay and the float was right. They had to launder all that weed money somewhere. Maybe they buried it in their back yard.
Indirect Cannabis Connections
All of these stocks are ancillary providers to the cannabis industry. (I own no shares in any of these companies, but I may buy or sell any or all of these companies in the future.) While not growing or selling cannabis directly, these companies serve the quasi-legal American cannabis industry.
Consensus knowledge is that dispensaries and cultivators are spanked at tax time due to federal illegality. Cannabis real estate companies make good financial sense, so long as the companies stick to being landlords primarily, they can draw profitable rents from growers.
CANL, DIGP and SGBY operate in the cannabis testing lab sector, another area with decent investment promise. US “legal weed” states generally require marijuana to be tested for everything from pesticides to mold. California is the current exception to that rule, but the state will likely enact regulations to require analytical testing soon. Canada is also touting the wisdom of knowing what is in your smoke and may require testing soon.
Whereas almost anyone can grow pot, it takes some science, knowledge and equipment to be an analytical lab. The competition is fierce among dispensaries and growers. But a license could be revoked or suspended by the issuing authority. A heavy rain could come in late September and ruin an outdoor crop. But a testing lab is good day after day.
It’s sort of like the price of entry keeps the losers out of the testing arena. Speaking of losers, have you considered an investment in Pazoo (PZOO)? Check their litigation records before investing in that mess. They did just get a new license from the City of Las Vegas but it’s priced at nothing for a reason. It is worth about what it is worth.
The McKenzie Speculator (c) 2017
The McKenzie Speculator (c) 2017
The stocks discussed herein are high risk, speculative businesses. Investors should be caution when purchasing such securities because share prices may fluctuate wildly in and investors may lose all or part of funds invested.
This article contains my opinions and it is my own work. I was not compensated or induced in any way by party to write or comment on the stocks mentioned.
When investing in any securities it is important to thoroughly research the company before purchasing shares. Small cap stocks may be thinly traded or traded, so that one might not be readily able to purchase or sell shares. Buyer beware. Know what you buy.