CLS Holdings (OTCQB:
CLSH) just announced record sales of $1.16 million for the
month of August alone.
Miami,
FL, September 10 2019 -- InvestorsHub NewsWire –– EmergingGrowth.com,
a leading independent small cap media portal with an extensive
history of providing unparalleled content for the Emerging Growth
markets and companies, reports on CLS
Holdings USA, Inc. (OTCQB: CLSH).
CLSH
may not be at these levels much longer.
See the
Press Release and more on CLS Holdings,
Inc. (OTCQB:
CLSH)
at EmergingGrowth.com
https://emerginggrowth.com/stock-report/?code=clsh
CLS
Holdings (OTCQB:
CLSH) (CLSH.CN)
is a best of breed stock that combines all of the best attributes
of cannabis stocks into one company.
CLS
Holdings (OTCQB:
CLSH) just announced record sales of $1.16 million for the
month of August alone.
See the
full press release
here.
-
$50 million
acquisition which should throw off $20 million in EBITDA the first
year.
-
$10 million in
the Bank
-
Strong medical
and retail marijuana franchise in both Massachusetts and
Nevada.
-
With the advent
of recreational sales in in Massachusetts they are at an inflection
point where sales growth is going to compound
higher.
See the
full report on CLS Holdings USA, Inc. on EmergingGrowth.com
here.
See more
news on CLS Holdings USA, Inc. on EmergingGrowth.com
here.
CLSH's
management team has also fully aggregated one acquisition know
as
Oasis Cannabis. This is one
of the top dispensaries n Las Vegas and one glance at the interior
retail space will tell the story with its clean professional
look.
CLSH
Management also has another acquisition in the pipeline to hit in
Q1 2020. The next Brockton Acquisition called
In Good Health is unique, because
the total purchase price is $50 million in cash, notes and equity,
but they are getting a company that has the potential to throw off
$20 million in EBITDA the first year assuming modest growth.
Getting a marijuana company for 2.5X profits is unheard of when the
average price to sales is 17X.
They also
have a decent balance sheet with $10 million in the bank at FYE 19
and the past quarterly reports have showed a positive trend that
looks like they are turning the corner to profitability. They
also have plans to grow their operations capacity and have a retail
brand known as
City Trees which is a specially
formulated THC distillate used in vape products, tinctures, and
caplets. This product is gaining traction in the market and
is distributed in 47 dispensaries. They are vertically
integrated and in every way a seed to shelf company. This
means there are so many chances for cross promotion, which
eventually finds its way to the bottom
line.
Many
still see huge opportunity in cannabis but the industry itself has
gone through a massive correction in its price to sales multiples
in just the past 6 months. This means investors are not as
ready to pay for sales as they once were. Leading in the
contraction are the top players like Canopy Growth (NYSE:
CGC), Tilray, Inc. (NASDAQ: TLRY),
and CuraLeaf (OTC Pink:
CURLF) which nearly halved their multiples. The biggest
standout was Cronos Group, Inc. (NASDAQ: CRON)
which went from 255 down to 19. This multiple contraction
means that investors will need to see increasing revenue growth
quarter over quarter to sustain the stock prices of these
companies.
Investment
Summary
The
cannabis sector clearly looks like it has put in a double bottom on
a technical basis so now could be an opportune time to step into
the sector and buy value. The next stage of growth could very
well be mergers and acquisitions, but it's unlikely that the top
brands backed by conglomerates will be creating mega brands.
Those businesses like Tilray, Inc. (NASDAQ: TLRY),
Cronos Group, Inc. (NASDAQ: CRON),
and Canopy Growth (NYSE:
CGC) will start to work when these large brands start selling
and launching CBD or THC infused products. Mergers an
acquisition plays could also begin to happen in the space and
represent big upside for investors.
The sweet
spot in the sectors seems to be a company that can successfully
complete acquisitions at fantastic valuations while increasing
their revenues and profitability all at once. CLS Holdings USA,
Inc. (OTCQB:
CLSH) is a best of breed stock with all the characteristics an
investor is looking for including a great price. By all
metrics the stock seems extremely undervalued and ready to
run. After the acquisition in 2020 revenues are expected to
be $50 million. Using a modest multiple of 5X sales puts a one year
price target of $2.00 share on the stock. With so much upside
potential and very little downside risk it makes sense to go with
the best of breed.
CLSH
may not be at these levels much longer.
See the
Press Release and more on CLS Holdings,
Inc. (OTCQB:
CLSH)
at EmergingGrowth.com
https://emerginggrowth.com/stock-report/?code=clsh
Other
Companies in the news and featured on
EmergingGrowth.com
Verus
International, Inc.
Verus
International, Inc.
(OTCQB:
VRUS)
popped yesterday 10% on anticipation of an earnings
release. The stock has run up over 100% two weeks and has
strong resistance at $.038. Depending on the numbers, the
stock may gap but beware of the resistance level.
Have a look
at CLS Holdings,
Inc. (OTCQB:CLSH)
who just
released
numbers. This could be the most undervalued stock in the
cannabis sector.
NorthWest
Biotherapeutics, Inc.
Northwest
Biotherapeutics, Inc. (OTCQB:
NWBO) shot up over 20% on over 20 million shares traded in one
day at the end of August. Since, the stock has had a healthy
pullback and fun up again last week after it released its first
press release since June discussing the expansion of its management
team. Volume has been thinning so be mindful of its support and
resistance of $.18 and $.28 respectfully.
PCT
Ltd.
Yield
sign company PCT Ltd. (OTC: PCTL)
has been on a freefall since the stock was $2.50 per share over a
year ago. With no news to speak of on OTCMarkets and an NT 10-Q
filed last month for the period ending 6/30/19 volume maintains
over an average of approximately 20 million shares per day. After a
recent run of about 400%, the company has fallen and is on the
verge of going sub-penny. Be careful.
Have a look
at CLS Holdings,
Inc. (OTCQB:
CLSH)
who just released
numbers. This could be the most undervalued stock in the
cannabis sector.
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