Friday, 16 November 2018

Investigative Report: LMFA - There Will Be a Buyout, RTO or Corporate Transaction

LM Funding America, Inc. (LMFA) is a stock that came onto our radar screen after heavy volume but strange price action on Wednesday. The stock dropped after a reverse split and financing deal that appears to not make any sense. The company received way more cash than it needs. After doing substantial research into the background of the major buyer, we believe that this transaction will be a prelude to a larger one - either a buyout, a reverse takeover or some other kind of corporate transaction - that could result in a substantial price rise similar to what happened to YECO. We are up to 723 followers despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We have over 3,000 followers on Twitter as well.

Before getting into the deal, we will talk briefly about what LMFA does, because once you understand that, the rest of the pieces will make sense. LMFA is basically a bad debt buyer that tries to collect on overdue bills from problem tenants. From LMFA's website:

"Formed in January 2008, LM Funding is a financial services company that purchases delinquent accounts from community associations. We offer community associations a variety of financial products customized to an association’s financial needs.

We believe that condo associations and their owners shouldn’t have to take on the financial responsibility of delinquency and the hassle of collection. That’s why we “buy problems.” Before LM Funding, condo association owners would have to hire attorneys to collect bad debt. We’re changing that, with a unique business idea that turns debt into instant cash—freeing condo associations from the burden of collection and allowing them to continue to maintain their operations. LM Funding’s accumulated delinquent assessment balance is now in excess of $150 million. That is a lot of problems that we’ve bought, and we want more!"

This business plan has obviously not been that great if you look at the stock price and history of operating losses, save for a few quarters. LMFA plummeted in price after a 1-for-10 reverse split and a financing at $2.40, which at that time was below the market price. From the Q3 press release:

"On November 1, 2018, the Company closed an underwritten public offering that included the underwriters’ exercise of its option to purchase additional shares, which resulted in the issuance of 2,875,000 shares of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) and common warrants to up to 2,875,000 shares of the Company’s common stock. At closing, LM Funding received gross proceeds from the offering of approximately $6.0 million, before deducting underwriting discounts and commissions and other expenses payable by the Company. As a result of the offering, the Company’s stockholders’ equity will exceed $2.5 million and its publicly held shares (i.e., shares not held directly or indirectly by an officer, director, or greater-than-10% of the total shares outstanding) will be approximately 1.1 million shares."

So the important thing to extract from this paragraph:

1. The company closed an equity financing of 2.9 million shares at $2.40, bringing in $6 million.
2. The reverse split and cash injection kept the company eligible for listing on the NASDAQ.
3. The float is 1.1 million shares, leaving a lot of possibility for volatility, as witnessed this week.

Two more paragraphs to note from the release:

“In the third quarter, we took critical steps to improve our capitalization structure and balance sheet,” said Bruce Rodgers, LM Funding’s Chief Executive Officer. “We were successful in closing a $6 million financing transaction that has significantly improved our financial flexibility and allowed us to regain compliance with NASDAQ. With this additional working capital, we can focus on providing solutions to condominium and homeowner associations.”

"At September 30, 2018, the Company had cash and cash equivalents of $929,149, compared with $590,394 at December 31, 2017. For the nine months ended September 30, 2018, the net cash from our operating and investing activities was a net use of cash of $13,055 as compared to a net use of cash of $1,090,990 for the comparable 2017 period"

The company had over $900,000 in cash as of September 30, 2018 and only spent $13,000 in cash between operating and investing activities for the first nine months of the year. The company didn't need to dilute so much and bring in that much cash. It was probably fine with something like $2 million to remain listed on the NASDAQ. Instead it went for $6 million. This deal does not make any sense, especially since the stock price has tanked to the $1.50's since then. The only possible reason is that there is much more to this deal that we currently know, that there is something going on behind the scenes that investors are unaware of.

The clue to look at is in this 13D filing:



All this information is important in figuring out what is truly going on here. Mark Pajak. Craven House Capital. The address and phone number: 107 West Federal St, PO Box 480 Middleburg VA; +1 540 687 3166. There was a Florida address in another part of the 13D filing but that one looks like it belongs to the purchaser's lawyer.


Craven Capital purchased 640,000 units at $2.40 for a 31.45% stake in LMFA. That's a $1,536,000 investment, one of which Craven is already down over $500,000 two weeks after closing the deal.

What's more Craven Capital is a merchant bank that is listed on the LSE and has a market cap of only 6.3 million pounds, about $8 million. Craven released a news release about its purchase of LMFA shares, so it is obviously proud of this major investment:


Look at the bottom of the news release, about Craven:

"The Company's Investing Policy is to invest in or acquire a portfolio of companies, partnerships, joint ventures, businesses or other assets globally in any geographic jurisdiction. The company will invest in both developed and developing markets providing long term patient capital and is often involved in special situations, restructuring, expansion and turn around investments in crisis and transitioning economies."

Craven considers itself to be long-term, patient capital and is involved in "special situations", restructuring, expansion and turn around investments. We can reasonably expect that this is what they will be with LMFA. Craven was allowed to purchase a substantial stake in LMFA, so whatever Craven management has on their minds must have support of LMFA management.

Someone was dumping shares and shorting on Wednesday, but it certainly wasn't Craven given this level of engagement. So one has to wonder why would Craven spend $1.5 million to own over 30% of LMFA when Craven itself is only an $8 million market cap company? This is a very substantial and important investment to them, not the same as if Citibank were to throw $1.5 million at it, for instance. Craven is in LMFA to enact a substantial transaction, it says so right in its mission statement seen above.

This is not the first time Craven has done something like this. Despite its small size, it has made four acquisitions recently, excluding the stake in LMFA:


Here is a press release about the land acquisition in Brazil:

"The Company today announces that it has acquired the entire share capital of Universal Properties Brasil Administracao de Imoveis Ltda ("UPBAI") for a total cash consideration of USD $3,100,000.

UPBAI is a holding company and as such has no trading activity. Its sole asset is a 500 hectare parcel of land in Canavieiras in the Bahia region of Brazil. The property comprises of four neighboring land parcels and benefits from 7.5km of direct ocean-front real estate.

Mark Pajak, Director, commented:

"We are delighted to announce the acquisition of this outstanding asset which represents our second substantial land holding in Bahia, just a few hundred kilometers from the 1,967 hectare property in Caravelas in which the Company is a minority shareholder. The land owned by UPBAI is ideal for both agricultural use or property development and we look forward to announcing further plans for these properties in due course. We continue to evaluate further land acquisitions in the region.""

It is interesting to see that Craven is into international beach front property development. It sounds kind of like the type of properties that LMFA offers financial solutions for.

So who is Mark Pajak? It is best to ask the man himself, up on the management section of Craven's website:

"Mark Pajak's duties include chairing the investment committee and direct board level involvement with the portfolio companies. Prior to his role at Craven House Capital, Mr. Pajak was Managing Director at Desmond Holdings and a member of their investment committee. He is also President and CEO of DLC Holdings Corp. (formerly Desmond Investments Ltd), a company listed on the TSX Venture Exchange in Toronto.

Mr. Pajak started his career at Taylor Wimpey Plc, the UK's largest property developer where he worked directly for the Chief Executive advising on M&A activity, corporate capital structuring and communications with shareholders and the financial community. He was among the youngest directors in the 130 year history of the company.

Mark holds both an undergraduate degree and MBA from Oxford University."

Note the two highlighted pieces. Mr. Pajak is the CEO of DLC on the Toronto Stock Exchange and worked with a property developer, specifically advising in M&A activities. Let's check out what DLC is up to:


DLC is a shell that will have a reverse takeover to publicly list Craven, and Ceniako, one of Craven's four acquisitions listed above. KwikBuild, noted as a company related to Craven, is a South African builder of homes.

So now we know that the head of the firm that purchased more than 30% of LMFA's shares has bought private companies and then taken them public through reverse takeovers in the past. Companies with beach front properties. In our opinion at a minimum, Mr. Pajak would be purchasing LMFA shares to expand its financing business to some of his other deals.

Recall the final piece of this puzzle. The address and phone number used by Mark Pajak on the 13D filing:

107 West Federal St, PO Box 480 Middleburg VA
+1 540 687 3166

Here it is again, owned by Wallach & Company:



While small companies do often share office space, it would be unusual to see them share a PO Box number and phone number. What's more, Wallach is the only company associated with this address other than Craven when doing an internet search. Wallach doesn't seem too active, for instance, there are no Yelp or BBB reviews. But there is one news article about this insurance company. So it is a small operation that seems to focus on health insurance to those who are travelling abroad.

So what does all this stuff mean?

Craven House Capital made a significant investment - both in terms of a large stake and a high proportion of its funds - into LMFA. LMFA provides financial solutions for condo associations. Craven has a history of doing reverse takeover transactions and invests in property development projects. What's more, it shares a mailing address and phone number of a company that offers health insurance to those travelling abroad and used that specific address on its 13D filing with the SEC.

What is our conclusion from all this? Craven's investment into LMFA is part of something bigger. We strongly believe that there will be a reverse takeover, just like with DLC in Canada, and it could involve one or more of Craven's other assets. Development of a resort property in Brazil might be where this is headed.

If you were caught at a bad price in the volatile trading of LFMA recently, do not fear. Craven House Capital likely has big plans for this investment. Look at what happened to YECO when it announced the close of its reverse merger deal.

Disclosure: We are long LMFA

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The Cryptocurrency Codex from the Cryptocurrency Institute 

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The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


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Saturday, 27 October 2018

Trade Alert: CREG Looks Ready To Follow YECO As The Next Chinese Stock To Spike

This past week we have been very bullish on Chinese-based stocks with small floats, particularly after the huge runs seen on Yulong Eco-Materials Limited (YECO), China Ceramics Co., Ltd. (CCCL) and The9 Limited (NCTY) in the previous week. YECO ran from $1.52 to a high of $17.87 on news of a completed acquisition that was first announced weeks ago. China Ceramics Co., Ltd. (CCCL) followed up with a 200% move out of nowhere on October 18 and The9 Limited (NCTY) with a 400% spike on the morning of October 19. We think China Recycling Energy Corporation (CREG) will be the next one to have a substantial break out based on very positive technicals and fundamentals that support a higher price. We are up to 720 followers despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We have over 3,000 followers on Twitter as well.

On Friday YECO was hot once again, rising 66% on 15 million of volume. This had a positive impact on CREG which shot up 20%, with most of that being in the last hour of trading. What makes CREG such a good candidate for a spike like YECO? Two reasons. First, CREG has a small float just like YECO. Second, CREG is fundamentally undervalued based on the assets held on the balance sheet. About a year ago CREG spiked from a little over $1.00 to over $9.00 out of nowhere. We think the conditions are right for that to happen again.




Let's review finviz data for CREG:


The key metrics to look at are:

Book value per share of $24.12
Cash per share of $7.81
P/B of 0.07
P/C of 0.20
P/FCF of 5.11
Shares outstanding 8.36 million
Float 5.56 million
Short float 3.95%

CREG has a book value per share of $24.12 and cash per share of $7.81, both substantially higher than its stock price of $1.59. This results in a price to book ratio of just 0.07x and price to cash ratio of 0.20x. Let that sink in for a second, CREG is trading 5 times lower than its cash balance. This stock would need to increase 5x just to come in line with the cash it has on its balance sheet and about 15x just to come in line with its book value.

Finviz doesn't recognize any revenue for CREG, but that is actually not true. It has a sales lease business model in which it records all of its income as interest income. The clue here is the P/FCF metric. While Finviz doesn't record any "revenues", it recognizes that it is generating free cash flow, and that its is trading at just 5 times its FCF.



CREG's share float is 5.56 million on outstanding shares of 8.36 million with a relatively low short interest of just under 4%.

Now let's look at finviz data for YECO:


The key metrics to look at are:

Book value per share of $1.54
Cash per share of $0.37
P/B of 4.66
P/C of 19.26
P/FCF N/A
Shares outstanding 4.56 million
Float 1.09 million
Short float 2.45%

YECO has a book value per share of $1.54. Prior to its big move, it was actually trading at book value. The Millennium Sapphire deal closes for $50 million by issuing 25 million shares at $2.00. So book value per share will remain in the $1.50 to $2.00 range even after consolidation of the businesses. The rest of the value metrics do not compare as YECO has very little cash on its balance sheet and does not generate FCF.

The point of comparing CREG's fundamentals to YECO is to show that YECO was trading at higher ratios even prior to its move. The knock against CREG would be that it is a Chinese company and that they should trade below book value, which is clearly not the case with YECO. And even if CREG deserves to trade below book value, what is a reasonable amount? 50%? That still would lead to a $12 share price. At a minimum it should trade at $7.81, the per share amount of cash on hand.

The comparables which slightly favor YECO are the lower shares outstanding and lower float. But CREG still has a very small float by most trader's standards. YECO's shares outstanding will be considerably higher after consolidation. The short interest on YECO, at least as of the date of the last short report, is less than 3%. YECO's spike was not really due to a short squeeze, so CREG's low short interest should also not be much of a concern to traders at this time.

We find that comparing CREG's superior fundamentals to YECO is very valuable in determining that CREG is due for a huge pop. There was clear evidence that CREG was a sympathy to YECO on Friday afternoon after YECO spiked. We recommend that readers watch CREG very carefully next week, using YECO, CCCL and NCTY as three recent examples of what can happen to these Chinese-based stocks, and that these spikes tend to happen in groups.

Disclosure: We are long CREG

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The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


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The dividend stock report from dividendstocksonline.com



Tuesday, 23 October 2018

Trade Alert: Chinese-Based Stocks Ready To Spike

Last week was very profitable for Chinese-based stocks with small floats, sparked by a 10x move on Yulong Eco-Materials Limited (YECO) from $1.52 to a high of $17.87 on news of a completed acquisition that was first announced weeks ago. China Ceramics Co., Ltd. (CCCL) followed up with a 200% move on October 18 and The9 Limited (NCTY) with a 400% spike on the morning of October 19. Chinese stocks had a quiet down day on Monday thanks to a larger market pullback but we think there are two other small float stocks that are prime for a sudden spike like these three. They are China Recycling Energy Corporation (CREG) and Delta Technology Holdings Limited (DELT). We are up to 719 followers despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We have over 3,000 followers on Twitter as well.

This is a follow up to our alert from yesterday. These stocks were all green on Tuesday with CCCL increasing 16%, YECO 18%, NCTY 17% and our picks CREG 6% and DELT 9%. This bodes well for all of these stocks but we think CREG and DELT could be morning gappers like the rest have been on any given day.

What makes CREG and DELT such good candidates for the spikes we have seen on these other three stocks? Two reasons. First, they offer equivalent or better small floats from which squeezes can occur. Second, they are fundamentally undervalued based on the assets held on the balance sheet.

Let's review finviz data for CREG:


CREG has a book value per share of $24.12 and cash per share of $7.81, both substantially higher than its stock price of $1.30. This stock would need to spike 5-10x just to come in line with its book value. The share float is only 5.56 million on outstanding shares of only 8.36 million. Finviz doesn't recognize any revenue for CREG, but that is actually not true. It has a sales lease business model in which it records all of its income as interest income:


Most quarters it is profitable but it had a rough Q2. Still, it does not justify such a discount in our opinion. We think CREG is a prime target to go to $5 to $10 based on the small float and strong fundamentals.

Let's review finviz data for DELT:


DELT only has $0.02 per share in cash but $3.97 in book value per share, four times higher than its $0.98 stock price. Insiders own nearly half of the shares so its float is only 6.8 million on total shares outstanding of 12.29 million. DELT is another prime spike candidate based on float and fundamentals, though maybe not as extreme as CREG, something like $2 to $3.

An investor might say though, "Wait, all of these Chinese stocks trade at a fraction of their book value, and they never go up". This is not true at all.

Let's review finviz data for YECO:


YECO has a book value per share of $1.54. It was actually trading at its book value prior to its big run last week and obviously trades much higher than its book value now. Insiders own the majority of shares so that it has a float of 1.09 million on 4.56 million total shares, which may account for its extreme spike. But we see other examples that this is not always the case.

Let's review finviz data for NCTY:


NCTY actually has negative shareholder's equity, so there goes the theory that Chinese stocks trade at well below their book value. The float is 10.41 million shares on 24.42 shares outstanding, far higher than CREG or DELT.

YECO, NCTY and CCCL all spiked well over 100% on flimsy, old or non-existent news. With Chinese stocks back in play, CREG and DELT are prime candidates to spike 100% or more out of nowhere like these stocks. We think it can happen sooner rather than later. All three of the aforementioned stocks will have attracted shorts thanks to their high volume and volatility. They can move back up on a short squeeze at any time, bringing the entire industry up and pouring gasoline onto any rise of these two undervalued, low float plays.

Disclosure: We are long CREG and DELT

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The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

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The dividend stock report from dividendstocksonline.com


Monday, 22 October 2018

Trade Alert: Chinese-Based Stocks Ready To Spike At Any Moment

Last week was very profitable for Chinese-based stocks with small floats, sparked by a 10x move on Yulong Eco-Materials Limited (YECO) from $1.52 to a high of $17.87 on news of a completed acquisition that was first announced weeks ago. China Ceramics Co., Ltd. (CCCL) followed up with a 200% move on October 18 and The9 Limited (NCTY) with a 400% spike on the morning of October 19. Chinese stocks had a quiet down day on Monday thanks to a larger market pullback but we think there are two other small float stocks that are prime for a sudden spike like these three. They are China Recycling Energy Corporation (CREG) and Delta Technology Holdings Limited (DELT). We are up to 713 followers despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We have over 3,000 followers on Twitter as well.

What makes CREG and DELT such good candidates for the spikes we have seen on these other three stocks? Two reasons. First, they offer equivalent or better small floats from which squeezes can occur. Second, they are fundamentally undervalued based on the assets held on the balance sheet.

Let's review finviz data for CREG:


CREG has a book value per share of $24.12 and cash per share of $7.81, both substantially higher than its stock price of $1.30. This stock could easily spike 5-10x just to come in line with its book value. The share float is only 5.56 million on outstanding shares of only 8.36 million. Finviz doesn't recognize any revenue for CREG, but that is actually not true. It has a sales lease business model which it records all of its income as interest income:


Most quarters it is profitable but it had a rough Q2. Still, it does not justify such a discount in our opinion. We think CREG is a prime target to go to $5 to $10 based on the small float and strong fundamentals.

Let's review finviz data for DELT:


DELT only has $0.02 per share in cash but $3.97 in book value per share, four times higher than its $0.98 stock price. Insiders own nearly half of the shares so its float is only 6.8 million on total shares outstanding of 12.29 million. DELT is another prime spike candidate based on float and fundamentals, though maybe not as extreme as CREG, something like $2 to $3. DELT was one of the few Chinese stocks to increase in price on Monday, a bullish sign.

An investor might say though, "Wait, all of these Chinese stocks trade at a fraction of their book value, and they never go up". This is not true at all.

Let's review finviz data for YECO:


YECO has a book value per share of $1.54. It was actually trading at its book value prior to its big run last week and obviously trades much higher than its book value now. Insiders own the majority of shares so that it has a float of 1.09 million on 4.56 million total shares, which may account for its extreme spike. But we see other examples that this is not always the case.

Let's review finviz data for NCTY:


NCTY actually has negative shareholder's equity, so there goes the theory that Chinese stocks trade at well below their book value. The float is 10.41 million shares on 24.42 shares outstanding, far higher than CREG or DELT.

YECO, NCTY and CCCL all spiked well over 100% on flimsy, old or non-existent news. With Chinese stocks back in play, CREG and DELT are prime candidates to spike 100% or more out of nowhere like these stocks. We think it can happen sooner rather than later. All three of the aforementioned stocks will have attracted shorts thanks to their high volume and volatility. They can move back up on a short squeeze at any time, bringing the entire industry up and pouring gasoline onto any rise of these two undervalued, low float plays.

Disclosure: We are long CREG and DELT

Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:

The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017

The dividend stock report from dividendstocksonline.com



Saturday, 20 October 2018

Rusoro Mining: Executes Billion Dollar Settlement Agreement with Venezuela; Target $0.80 CAD

Last weekend we presented Rusoro Mining Ltd. (RMLFF) (RML.V) as a stock with 7x to 12x upside after it entered into a settlement with the Venezuelan government to the tune of $1.28 billion U.S. It rose from $0.22 to $0.29 in Canada on the week, fueled by strength in Friday's trading after a mid-week pullback from a hot Monday. After an updated release as to the timing of the payments the company is to receive from Venezuela, we are updating our target to $0.60 U.S. or $0.80 Canadian. While we maintain that the stock has several times the upside, we are confident based on sufficiently conservative assumptions that the stock is worth this much today based on risk-adjusted cash flows. We are up to 711 followers despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We have over 3,000 followers on Twitter as well.

Before getting into the numbers, we would like to remind readers of this very important point from last week's news release:

"Rusoro Mining has Received a Settlement Proposal from the Bolivarian Republic of Venezuela

VANCOUVER, Oct. 11, 2018 /CNW/ - Rusoro Mining Ltd. (the "Company" or "Rusoro")  announces that it has agreed on the terms of a settlement proposal ("Settlement Proposal") with the Bolivarian Republic of Venezuela ("Venezuela") by which Venezuela agrees to pay Rusoro over US$1.28 billion to acquire the Company's mining data and for full release of the arbitral award (the "Award") issued in favor of the Company in August 2016 by a tribunal constituted pursuant to the Additional Facility of the International Centre for Settlement of Investment Disputes. In addition, it is contemplated that the parties will constitute a Mixed Commission to assess the current status of Rusoro's Choco 10 and San Rafael - El Placer former projects and on the basis of such assessments may by the end of January 2019 partner to exploit those projects. Rusoro expects to sign the formal settlement agreement (the "Settlement Agreement") shortly after completion of the schedules to the Settlement Agreement.

Note that Rusoro received a settlement proposal from Venezuela and has agreed to it. This means that Venezuela is not reluctantly resigned to the deal like it has been with other billion dollar awards mandated by arbitration; it has actively put forth a proposal which has been accepted by Rusoro. This proposal presumably has a payment timetable which is acceptable to the company. If Venezuela wants to remain in good faith with the deal that the country itself has put forth, it will do whatever it can to abide by it. Likely in lieu of other settlement deals where it was not the aggressor in settlement like it was here, but passive acceptance of its fate.

The Rusoro deal is the Venezuelan equivalent of a consumer proposal to get out of debt with their creditors, wanting to maintain a good relationship and keep whatever credibility the country has left. Rusoro is led and significantly owned by father and son duo Vladimir and Andre Agapov, Russian businessmen with influence. Rusoro once produced two-thirds of all gold mined in Venezuela.

The news release on Friday states:

Rusoro Mining Executes Settlement Agreement with Bolivarian Republic of Venezuela

VANCOUVER, Oct. 19, 2018 /CNW/ - Rusoro Mining Ltd. (the "Company" or "Rusoro") announces that it has executed a settlement agreement ("Settlement Agreement") with the Bolivarian Republic of Venezuela ("Venezuela") by which Venezuela agrees to pay Rusoro over US$1.28 billion to acquire the Company's mining data and for full release of the arbitral award (the "Award") issued in favor of the Company in August 2016 by a tribunal constituted pursuant to the Additional Facility of the International Centre for Settlement of Investment Disputes.

The Settlement Agreement includes, among other terms:

Venezuela has agreed to pay the Company an initial payment of US$100 million in November 2018. Upon completion of that initial payment, the Company will suspend the legal enforcement of the Award and deliver the Company's mining data to Venezuela. 

Venezuela has agreed to pay the balance of the amounts due under the Settlement Agreement in monthly installments over five years, starting in January 2019. 

Upon the final and full payment of the Settlement Agreement, the Company will cease all legal activities related to the collection of the Award. 

The Company may resume the legal enforcement of the Award if any payment due under the Settlement Agreement is not received by the Company within the periods provided in the Settlement Agreement. The Company may also terminate the Settlement Agreement in certain scenarios if Venezuela defaults on its obligations. 

Venezuela retains the right to continue the proceedings to set aside the Award at the seat of the arbitration in Paris. If the Award were set aside, Rusoro will retain any payments made until that date as consideration for the termination of its mining rights and acquisition of its mining data.
In addition, the parties will constitute a Mixed Commission to evaluate the status of Rusoro's former projects and determine if the parties should proceed with a joint venture.

"The signing of this agreement represents a significant milestone in our continued relationship with Venezuela and we are excited for the Company and its shareholders to begin this new chapter," commented Vladimir Agapov, Chairman of Rusoro.

Signing the agreement is a significant development that should result in bullish movement on the stock. How much so? We think RML is worth $0.80 CAD or $0.60 US for RMLFF based on the risk-adjusted present value of the cash flows. As time passes and payments are collected from Venezuela, that target increases towards the $2 vicinity we mentioned in our prior write up.

Rusoro is getting over $1.28 billion US dollars broken down as:

1. $100 million upfront due in November.
2. The remaining $1.18 billion will get split into 60 monthly installments over five years. That comes to $19.7 million US per quarter.

Because Venezuela's finances are in a poor state, we are using a heavy discount rate of 2% per month in order to come up with a present value of the cash flows. The present value of an annuity can be seen here, with P = $19.7 million, r = 2% and n = 60. This would be roughly equivalent to 5 years of $236 million per annum payments at a 24% discount rate. Because payments start in January, this must be discounted for another 2 months at 2% each (annuity formula present values the cash flows to December).

The 60 payments totaling $1.18 billion are worth $683.6 million, about 58% of their face value. The $100 million payment discounted at 2% for one month is $98 million. That comes to a total of $755 million.

From there we have to subtract the costs. We are assuming that the contingent success fees and the fees owed to Calunius Litigation Risk Fund LP will take up 40% of the cash flows and will be paid at the time of receipt. If you read our last piece, you will see that we feel that 40% will be the higher limit, but we have chosen this to be conservative. $755 million multiplied by 60% is $453 million in net profits. Because Rusoro has an accumulated deficit of $882 million, we are assuming that it has sufficient tax loss carryforwards where this net profit will not be subject to income tax.

$453 million in net profits less $97 million in liabilities listed on Rusoro's last balance sheet leads to a net asset value of $356 million. With 585 million fully diluted shares outstanding, this leads to a per share value of approximately $0.60 for RMLFF. Translating these figures to Canadian dollars leads to a $0.80 per share value for RML. We expect the market to react positively to this news on Monday. RML closed at $0.29 in Canada on Friday before trading was halted. If Rusoro trades at a discount to this target on Monday, we view that as a continued investment opportunity because the market is using a more aggressive discount on the cash flows than we are. Under this circumstance, we would assume the stock would have a more substantial rise upon cash flows coming in and on time, starting in 2-6 weeks.

Again, this is our target value for Rusoro today after the settlement news. This should rise with time to $1.00 to $2.00 and possibly more than that upon successful collection of the upfront and monthly payments. We are fairly confident that Venezuela will make these payments a priority because Rusoro once produced two-thirds of all gold mined in Venezuela and the country wants to get back into the good graces with this company to get the mine up and running and the Russians and Chinese in general after the nationalization that took place under the Chavez regime. 

Disclosure: We are long Rusoro Mining

Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:

The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017

The dividend stock report from dividendstocksonline.com



Sunday, 14 October 2018

Rusoro Mining: A 7x To 12x Upside Based On Billion Dollar Settlement With Venezuela

The market took a big hit this past week. Despite that, our most recent picks NeutriSci International Inc. (NRXCF) (NU.V) and New Age Farm Inc. (NWGFF) (NF.CN), remain slightly in the green even as they have been victims of the weak market. These two companies continue to release a steady stream of news and are on the peripheral of a lightning hot cannabis market that we think is in a bubble. The bubble aspect of the cannabis market is exactly why we are going down the line to find cheap undiscovered gems like these rather than the market leaders like Tilray (TLRY) or market pretenders like New Age Beverages Corporation (NBEV) or India Globalization Capital, Inc. (IGC) which have insanely high valuations compared to their near-term revenue prospects. If the cannabis sector continues to climb, it will take companies like NU and NF with it as investors will look further down the line like we have to find cheap plays. Much like how in a housing bubble, condos and houses in less desirable areas in the city rise in price as well. But if the cannabis sector falls, these companies won't fall as much or might remain steady as they both have reasonably near-term revenue prospects that set a floor on their value. Both NU and NF sit closer to their 52-week lows than 52-week highs, so it is hard for them to fall in a bubble pop when their bubble, along with other CBD/hemp players like Isodiol occurred several months ago.

In chasing the hot cannabis sector, we have strayed a little bit from our "Value Trades" theme on this blog. With our next pick, we can't think of a stock that fits this moniker better right now. Rusoro Mining Ltd. (RMLFF) (RML.V) entered into a settlement with the Venezuelan government to the tune of $1.28 billion U.S. RMLFF closed Friday with a $97 million market cap. Even after subtracting the nearly $100 million in liabilities on the company's balance sheet and the potential of  30-40% of the settlement going to the litigation funding agreement with Calunius and contingent success fees, this settlement implies a minimum of a 7 times upside and as much as a 12 times upside return upon its receipt. We are up to 705 followers despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We have over 3,000 followers on Twitter as well.

The first reaction one would have is that "if it is too good to be true, it usually is". RML has reacted positively to this news, moving from $0.12 to $0.22 on the TSX Venture on over 13 million volume over the past two days since this news was released. However, if this settlement is to be believed, RML should have immediately moved to $1.00 or more on 10's of millions of volume. There are a few simple reasons why we think this hasn't happened, and why we think it would be wise for readers to carefully consider this opportunity while it is so cheap:

  1. The market has been extremely weak during the release of this news. Long term investors and day traders have been suffering on the long side, which makes it easier for a stock to sell off on profit taking on anything that makes a bit of money. This includes a stock like RML which has had news which sends it into another stratosphere in terms of fundamental value.
  2. The balance sheet looks awful. This could cause some people to avoid the stock, thinking that any prolonged delay in payment will result in the company's insolvency or perhaps selling that settlement to a third party for a fraction of its value in order to get out of today's debt. Past deals to help fund the legal costs on a contingency basis could also turn some people off the stock as that is an unknown. 
  3. They just don't believe a Venezuelan settlement based on the poor financial state of the company and look to recent examples as evidence. 

#1 provides investors with a great opportunity. While many stocks suffered a loss this week, our experience has been that stocks that have good news with limited movement due to a weak market have the better short term upside potential during a market recovery compared to stocks recovering from a pullback. If the market does well this week, people will chase a good news story with momentum on FOMO.

#2 is the fear of the unknown. Rusoro has funded operating and litigation expenses and delayed debt repayments under the expectation that there will be a substantial settlement from Venezuela (the company has essentially no assets without it, so debt holders really had no choice). There is no chance that the company is going bankrupt now, but everyone involved with the company up until this point will get paid. Per financial reports, Rusoro's management estimated that the aggregate potential exposure related to contingent success fees will not exceed 15% of the Award. The deal with Calunius Litigation Risk Fund LP is more of a wild card because its terms are not clearly disclosed in the financials. Based on our research and knowledge of these types of contingency deals, there are two ways this deal could have been structured. It could be a straight percentage, likely not exceeding 30%, or a certain multiple, such as 5x, of the costs incurred by Calunius during this time. So Calunius could end up taking in excess of $100 million and maybe up to $400 million of this deal. But that still leaves a lot left over for Rusoro, well over $1.00 per share worth with 585 million fully diluted shares in the worst case scenario and likely around $2.00 for the Canadian listing RML or $1.50 for RMLFF for a more realistic scenario.

#3 Rusoro was trading at pennies on the dollar even after having been awarded a billion dollar settlement in 2016 by the International Centre for Settlement of Investment Disputes. The stock hit $0.35 in August 2016 shortly after the news but drifted downward after it became apparent that Venezuela was not willing nor able to play ball. This is where one must carefully read the latest news release to really understand what is going on here:

"Rusoro Mining has Received a Settlement Proposal from the Bolivarian Republic of Venezuela

VANCOUVER, Oct. 11, 2018 /CNW/ - Rusoro Mining Ltd. (the "Company" or "Rusoro")  announces that it has agreed on the terms of a settlement proposal ("Settlement Proposal") with the Bolivarian Republic of Venezuela ("Venezuela") by which Venezuela agrees to pay Rusoro over US$1.28 billion to acquire the Company's mining data and for full release of the arbitral award (the "Award") issued in favor of the Company in August 2016 by a tribunal constituted pursuant to the Additional Facility of the International Centre for Settlement of Investment Disputes. In addition, it is contemplated that the parties will constitute a Mixed Commission to assess the current status of Rusoro's Choco 10 and San Rafael - El Placer former projects and on the basis of such assessments may by the end of January 2019 partner to exploit those projects. Rusoro expects to sign the formal settlement agreement (the "Settlement Agreement") shortly after completion of the schedules to the Settlement Agreement.

"We are very pleased that we have agreed on terms of a settlement with Venezuela," commented Vladimir Agapov, Chairman of Rusoro. "We look forward to the execution of the Settlement Agreement and towards our continued relationship with Venezuela in assessing two of Rusoro's former gold projects regarding a potential partnership to restart production of the Choco 10 and San Rafael – El Placer mines."

Note that Rusoro received a settlement proposal from Venezuela and has agreed to it. This means that Venezuela is not reluctantly resigned to the deal like it has been with other billion dollar awards mandated by arbitration; it has actively put forth a proposal which has been accepted by Rusoro. This proposal presumably has a payment timetable which is acceptable to the company. If Venezuela wants to remain in good faith with the deal that the country itself has put forth, it will do whatever it can to abide by it. Likely in lieu of other settlement deals where it was not the aggressor in settlement like it was here, but passive acceptance of its fate.

Some investors are comparing this deal to the one accepted by Gold Reserve Inc. (GDRZF) (GRZ.V) and how this company is still trading at a fraction of the market cap of its settlement, despite already getting cash. This deal is not comparable, but also shows that Venezuela does have the ability and willingness to pay. Reading the news release that announced this deal, Venezuela merely agreed to pay the arbitral award. That's the equivalent of reluctantly agreeing to pay a massive parking ticket after trying to go to court to dispute it and failing. There are several news released produced by Gold Reserve which update the market on the progress of the settlement, with Venezuela eventually paying in installments but clearly dragging its feet.

The Rusoro deal is the Venezuelan equivalent of a consumer proposal to get out of debt with their creditors, wanting to maintain a good relationship and keep whatever credibility the country has left. Rusoro is led and significantly owned by father and son duo Vladimir and Andre Agapov, Russian businessmen with influence. Rusoro once produced two-thirds of all gold mined in Venezuela. The post-Chavez regime likely values these people and Russian associates in general more than any other company Chavez screwed over during the nationalization process.

Gold Reserve is also paying income tax on each round of the settlement it receives, a major contributor to the discount it is trading to its settlement. Rusoro has recorded an accumulated deficit of $882 million U.S. according to its latest financial statements. As a result, the company should have substantial tax loss carryforwards which it can apply now to avoid taxes on any settlement payments net of contingency fees.

All things considered, Rusoro is trading at a substantial discount to where it should be after the settlement. RML hit $0.35 on the news of the award in 2016. Now that Venezuela is finally willing to pay for the award, $0.35 should be the minimum starting point and should see greater than $1.00 in reasonably short order upon further clarification of the collection process in our opinion.

Disclosure: We are long Rusoro Mining

Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:

The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017

The dividend stock report from dividendstocksonline.com



Thursday, 4 October 2018

Don't Buy U.S. CBD Fake News. Buy Canadian CBD Real News.

The pump and dumps have been picking up in intensity as traders are getting desperate to find "cheap" "cannabis" and "CBD" plays. Stocks like Canopy (CGC) (WEED.TO) and Tilray (TLRY) have gone on huge runs, adding billions in market cap and people are looking for the trickle-down effect on the microcaps. This has resulted in stocks running on pure rumor and conjecture:

  • New Age Beverages Corporation (NBEV) has developed a CBD beverage product portfolio. But that portfolio isn't even in the market yet - it will debut at the North American Convenience Store Show on October 8 - and the market cap is already $422 million.
  • India Globalization Capital, Inc. (IGC) merely identified potential markets for Hyalolex, its lead cannabis-based supplement for treating and managing Alzheimer’s patients and stated its desire to enter into the CBD energy drink space with a distribution agreement and saw its stock shoot up to $14 from less than $1 a couple of months ago. It's now in the dump phase of the stock cycle but at $6.00, still has a market cap of over $200 million.
  • DAVIDsTEA Inc. (DTEA) - actually a Canadian company, but trades only in the U.S. and Europe - has seen its stock move up well over $4.00 on heavy volume twice in the past three weeks - adding $25M+ in market cap both times - before the company itself squashed any fake rumors about getting into the CBD beverage space. 
  • Pain Therapeutics, Inc. (PTIE) nearly tripled in price on Wednesday, adding over $30 million in market cap, as the company announced a strategic conference call and traders were speculating that it was getting into the cannabis market. After the call took place on Thursday and reality set in that it was just an update on its pipeline, the stock tanked more than 57% to pare most of those gains.

Instead of chasing these overvalued companies trying to get into CBD market or random companies not even trying to get into the CBD market. U.S. investors should look north of the border to get their CBD fix. There are two companies we have identified as legitimate players with products in the market that are trading for a mere fraction of what these U.S. companies are valued for what amounts to be nothing more than "plans" to get into the CBD market or nothing more than fake news made up by traders. NeutriSci International Inc. (NRXCF) (NU.V) which trades at a $15 million market cap under its OTC symbol and New Age Farm Inc. (NWGFF) (NF.CN) which trades at a $29 million market cap under its OTC symbol.

Before getting into our report, we want to assure readers that our recent history into trading the cannabis hype in Canada has shown that we know what we are talking about. Since re-focusing on the Canadian market in August, most of our picks have been on a tear, resulting in tremendous gains for our readers:
  • In our write up on August 14, Buying Cheap Cannabis Warrant Plays In Preparation For Fall Pop, we called KALY.wt at $0.03 and HIP.WT.A at $0.12. KALY.wt closed today at $0.065 for a 117% gain and HIP.WT.A closed at $0.275 for a 129% gain.
  • In our write up on September 4th, we picked KBEV at $0.35 (a company also getting into the CBD beverage space). It is $0.65 now for an 86% gain
  • In our write up on September 5th, we picked CHH at $0.355 after it signed a deal with Canopy to get elderly people who live at their facilities and who spent their younger years listening to Richard Nixon's no tolerance policy on drugs to open up to the idea of medicinal uses of cannabis. CHH closed at $0.40, for a 13% gain
  • The next day, we picked a cryptocurrency stock NETC at $0.10. NETC closed at $0.18, for an 80% gain. One of the very few cryptocurrency stocks out there to make a true bounce from its lows.
  • Not everything can go right. Our pick of IGX on September 20th aftr it announced a collaboration with Tilray has dropped from $2.35 to $1.52 as Tilray pulled back significantly after its first bubble-like run up. The SIC area play PIVT has dropped along with SIC crashing, from $0.155 to $0.125 since August 3rd and another area play to GBR, BTU has dropped from $0.08 to $0.04 since our trade alert on August 27th
No one will be perfect on the stock market, but as you can see our track record has been very good overall, taking advantage of the cannabis bull market that is turning into a cannabis bubble - but also managing to pick a cryptocurrency stock that has nearly doubled while most other cryptocurrency stocks are still in the gutter. We are up to 690 followers despite not giving out a lot of alerts, a fact that we think is indicative of this successful, diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We have over 3,000 followers on Twitter as well.

NU is a stock we picked earlier this week , when it was trading at $0.15 in Canada. It proceeded to trade as high as $0.25 before putting back to $0.185 on Thursday. We continue to be very long on this stock and consider Thursday's pullback an opportunity as it is nearly 30 times cheaper than NBEV despite being ahead of the game in the CBD product space. NU's background and technology is used to develop nutraceutical products, but with cannabis legalization and the increasing popularity of cannabidiol for a variety of health benefits, the company quickly pivoted so that it is planning to offer products such as this:

NU has teamed up with Nutritional High International (EAT), bringing Cannabis-Infused Nu Energy Tablets to the market:

"TORONTO, July 10, 2018 (GLOBE NEWSWIRE) -- Nutritional High International Inc. (the “Company” or “Nutritional High”) (CSE:EAT) (OTCQB:SPLIF) (FRANKFURT:2NU) is pleased to provide an update on its previously announced partnership with NeutriSci International Inc. ("NeutriSci") (TSX-V:NU) (OTCQB:NRXCF) (FRANKFURT:1N9) (see press release dated May 30th, 2018).

As of July 11th, 2018, NeutriSci and Nutritional High will commence the production process of its newly developed chewable, sublingual THC product (“Nu Energy Tablets”) for sale and distribution in the state of California. The Nu Energy Tablets will be produced at the Company’s Pasa Verde manufacturing facility, located in Sacramento, California. Delivery of the first purchase orders is on track and set to begin in Q3 of 2018. Initial distribution will begin in approximately 400 dispensaries across the state.  

The recreational use cannabis market in California is expected to exceed $5 billion in 2019.  By comparison, beer sales in California hit $5 billion in 2018, according to industry research group IBIS World.

Jim Frazier, CEO of Nutritional High commented: “We are pleased to announce this milestone in our working relationship with NeutriSci and look forward to rolling out the distribution of the product across California. As a Company, we strive to provide our customers with unique best-in-class cannabis products, and this signifies the continuance of that strategy.”

NeutriSci’s CEO, Glen Rehman stated, “We are very pleased to announce that the manufacturing of the new sublingual melts using NeutriSci’s patent pending CRYOLISATION™ technology will begin July 11, 2018.  This signifies a major step forward in gaining a strong foot-hold in the California market for both companies.  Our partnership with Nutritional High has secured distribution for our ground-breaking product in dispensaries across the state of California.  We are excited to bring our product to the California marketplace!”

EAT has a $90 million market cap in Canada - much bigger than NU's market cap, but much smaller than many other cannabis players - and is another stock that could go on a substantial run. With EAT's aggressive expansion into Nevada, we think there could be news of expanding the tablets to sell in that and other states too, leading to more positive catalysts for NU.

Something very important that can't be overlooked is that NU has signed distribution agreement with one of the largest food retailers in Canada, enabling them access to the shelves of over 1,000 supermarkets:

"Vancouver, British Columbia – January 17, 2017 – NeutriSci International Inc. (the “Company” or “NeutriSci”) (TSX-V: NU) (FRANKFURT: 1N9) the innovator and pioneer behind neuenergy®, announces its latest distribution agreement with Sobeys and Safeway Canada.

Sobeys Inc. and Safeway Canada are wholly-owned subsidiaries of Empire Company Limited (“Empire”).  Empire is one of the largest food retailers in Canada, with over 260 Sobeys and 183 Safeway supermarkets operating in Canada, with an additional 1,200 stores operating under banners such as IGA and IGA Extra, Thrifty Foods, Foodland, FreshCo, Price Chopper, Lawtons Drugs, Rachelle-Béry, Needs, Marché Bonichoix and Les Marchés Tradition."

If NU can get its CBD product eligible/legal for sales in supermarkets, the distribution agreements will already exist for fast expansion. A report independent of ours authored by someone who appears to be a long-term shareholder highly familiar with NU called "The Fundamental Roadmap to $1 for NU" made a brief but informative bullish case for the stock. We suggest you read it.

NF is a stock that we have just started writing about today. It rose 15% in Canada on 12 million volume and it did so for good reason. Despite the move, it is still 15 times cheaper than NBEV and light-years ahead of it in terms of having a CBD beverage on the shelves. The company just purchased Drink Fresh Water LLC last week and on Thursday announced that its flagship Fresh Water CBD beverage is now being sold in 35 States across the U.S. Not plans to sell a CBD beverage like NBEV or IGC, but it is actually selling something in the market:

VANCOUVER, British Columbia, Oct. 04, 2018 (GLOBE NEWSWIRE) -- New Age Farm Inc. (CSE:NF) (OTC:NWGFF) (FSE:ONF) (“New Age Farm” or the “Company”) is pleased to announce that Fresh Water, the flagship product of the Company’s newly acquired wholly owned subsidiary Drink Fresh Water LLC, can now be found in retail stores in 35 states across the nation.  Fresh Water has continued to rapidly expand its footprint since inception.

Joshua Bartch, New Age Farm’s Chief Executive Officer, stated: “We couldn’t be more pleased with the rapid growth of Fresh Water.  Not only does the company’s footprint span more than 50% of the nation but we are continuing to see rapid growth and an amazing retention rate.  Additionally, we are currently working to drop the product in the established distribution through We Are Kured, LLC as well as evaluate new products to add to the line. We are very excited about the future of Fresh Water and will be updating our shareholders on more advancements in the near future.”

If stocks like IGC and NBEV can go on substantial runs, adding well over $100 million in market cap merely on plans to enter the CBD market and even stocks like DTEA and PTIE can temporarily add $25 million market cap or more on rumors before pulling back once those rumors are squashed, how much can NeutriSci with its minuscule $15 million U.S. market cap and New Age Farm with its very small $29 million U.S. market cap move with CBD products actually in market and distribution in place? We expect these stocks to go on monster runs, because investors who want to chase cheap CBD players will eventually come looking for something with substance after being burned on stocks like PTIE and DTEA and turned off by the valuations of the great planners like NBEV and IGC.

Disclosure: We are long NU.V and NF.CN

Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:

The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017

The dividend stock report from dividendstocksonline.com