Thursday, 20 September 2018

IntelGenx: Deal Signed With Tilray

Looking over our picks in 2018, we have had numerous wins in the Canadian cannabis sector. We are going there once again, making IntelGenx Technologies Corp. (IGXT) (IGX.CN) our next trade alert after it signed a deal with Tilray (TLRY) on Thursday. We are up to 664 followers despite not giving out a lot of alerts, a fact that we think is indicative of a 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.

IGXT rose about 115% on both sides of the border after it announced the following deal with Tilray:

SAINT LAURENT, Quebec, Sept. 20, 2018 (GLOBE NEWSWIRE) -- IntelGenx Corp. (TSX-V:IGX) (OTCQX:IGXT) (“IntelGenx”) today announced that it has executed a non-binding letter of intent (the “LOI”) with Tilray, Inc. (NASDAQ:TLRY) (“Tilray®”), a global leader in cannabis research, cultivation, production and distribution, to co-develop and commercialize oral film products infused with recreational and medical cannabis (“cannabis-infused VersaFilm™”), in anticipation of amended cannabis regulations which would allow adult-use consumers to purchase edible products.  

Pursuant to the LOI, subject to entering into a definitive agreement and the satisfaction of customary closing conditions, IntelGenx and Tilray will fund 20% and 80% of the costs associated with the development of the cannabis-infused VersaFilm™ products, respectively.  IntelGenx will have rights to manufacture and supply the co-developed products to Tilray, and will also receive a fixed single-digit royalty on net product sales.  Tilray will have the exclusive, worldwide marketing and distribution rights for the co-developed products.

The LOI also contemplates that, at the time of entering into the definitive agreement, Tilray® will make a strategic investment in IntelGenx by way of a non-brokered private placement (“Private Placement”).  Tilray® will purchase 1,250,000 common shares of IntelGenx at a price of USD$0.80 per share, which is equal to the five-day volume weighted average closing price of IntelGenx’ common stock on the OTCQX for the period ended September 18, 2018.  IntelGenx intends to use the proceeds from the Private Placement for cannabis-infused VersaFilm™ product development in connection with the LOI.  The Private Placement will be subject to the approval of the TSX Venture Exchange.

“Our proprietary VersaFilm™ drug delivery platform offers a number of proven advantages - including increased bioavailability, precision dosing, accelerated onset of action, reduced side effects, child-resistant packaging and easier, more discrete administration - all of which we believe have the potential to improve the way people may use and experience cannabis in the future,” said Dr. Horst G. Zerbe, President and CEO of IntelGenx.  “This LOI marks the first step in forming an exciting partnership with Tilray®, a global leader in the medical and recreational cannabis industry.” 

Not only are IGXT and TLRY planning to enter into a partnership whereby TLRY covers 80% of the costs, but TLRY is also making a $1 million strategic investment into IGXT. so we know that this deal is serious even if it's only at the LOI stage. While IGXT more than doubled, we think that it has MUCH further to go as it still sits only at a $116 million market cap while TLRY has grown into a $16 billion company. If TLRY didn't pull back from its crazy run to $300, IGXT probably would have gone up over $5 on Thursday, similar to what New Age Beverages Corporation (NBEV) has done. With this lightning hot cannabis sector and thin asks on IGXT and IGX in Canada, we think that $5.00 will be possible soon, if not on Friday. IGXT is definitely one to put on your watch list, but be prepared for very high volatility if you buy it.

Disclosure: We are long IGXT

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



Friday, 7 September 2018

Netcoins: A Cash Flow Positive Cryptocurrency Company

In our recent write ups we have been long on cannabis and cannabis-related stocks, which have worked out pretty well for us and our readers. While we will continue to look for trading opportunities in this sector, we are switching gears for this pick into the cryptocurrency and blockchain industry. Netcoins Holdings Inc. (GARLF) (NETC.CN) announced that it achieved cash flow positive results for August. It traded over 7 million shares in Canada but ended up just 5% yesterday. We think that once the price of Bitcoin recovers in the fall and interest in blockchain stocks returns, this one will be an absolute monster. Netcoins has demonstrated that it has a quickly growing business that is already at the turning point of profitability. We are up to 660 followers despite not giving out a lot of alerts, a fact that we think is indicative of a 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.

Netcoins has a very simple business plan. It has set up three networks or methods for regular people to buy or sell Bitcoin, Ethereum and other leading cryptocurrencies (with that list growing with time) and makes a mark-up on the sale, as well as brokerage services for businesses and high net worth individuals interested in cryptocurrency. (See website)


The website is growing in popularity with Alexa results trending strongly in the right direction. It sits just outside the top 100,000 most active sites in Canada. However, these traffic results are based on the average of the last three months. Stuffgate, which discloses the last month of Alexa traffic rankings has Gonetcoins.com ranked #136,639 in the world. That means traffic to the website is greatly accelerating. Keep this in mind as this point will come up later when analyzing daily revenue trends. We suggest that investors look to these websites every so often to get an idea of the increasing trend of web traffic which will be correlated to revenue growth.



Gonetcoins.com has generally received positive reviews in an industry where the first gut reaction from people with bigger mouths than brains online is to yell "scam" at everything:


None of this should be too surprising, given the corporate update that NETC provided yesterday:

"VANCOUVER, British Columbia, Sept. 06, 2018 (GLOBE NEWSWIRE) -- Netcoins Holdings Inc. (“NETC” or the "Company") (CSE: NETC(OTC: GARLF) is pleased to provide further transactions updates, plus information on its Retail, OTC and upcoming Dealer-Brokerage lines of businesses.
Revenues
In the first two months of Q3 of fiscal 2018 (July and August, 2018), Netcoins has generated $12.9 million in transactional revenues through its Retail and OTC lines of businesses. This represents a very substantial increase in revenue per day over Q1 and Q2, and was generated during months where Bitcoin experienced new 2018 lows below USD $6,000 per coin. Netcoins transactional revenues are not tied to the price of underlying cryptocurrencies, including Bitcoin.
Cash
At the end of August, Netcoins has over CAD $5.5M million in cash, and cash equivalents, with zero debt. Netcoins generated positive cash flow in August of $64,000, being the first cash flow positive month since going public in March 2018.
Coin Listings
Netcoins has now completed listing all of the top 7 coins by market cap, which is a substantial accomplishment, and makes our platform the only one in Canada to do so, to our knowledge. This also makes our platform more attractive to buyers/sellers/investors and also to altcoins as a place to be listed. 
Netcoins has listed (or has agreed to list) 7 new tokens in Q3. This has generated listing fees of approximately CAD $207,000 in Q3 thus far.
Retail Network
Our retail network continues to grow, with more than 21,000+ locations for acquiring crypto in Canada, Australia, and Europe. We have also added the ability for citizens of Kenya and Ghana to buy crypto from Netcoins with USD Flexepin vouchers. In the coming months, we expect to be adding Tanzania, Zambia, Uganda, Rwanda, South Africa, Nigeria, Zimbabwe, Malawi, Namibia and Botswana in the same fashion.
Further, we are seeking distribution partnerships to significantly expand the retail network in the coming months.
OTC Services
Netcoins OTC (Over-The-Counter) business, also known as our private brokerage, continues to gain strength in the global market. In Q3 so far, we have onboarded four cryptocurrency miners providing them with liquidity in addition to serving crypto hedge fund operators, crypto brokers and high net worth individuals. Our OTC business provides three distinct market advantages:
  1. Market Leading Service Fees
  2. Speed of Payment (often same day)
  3. Personalized Account Rep and an Always-on OTC platform for transactions at otc.gonetcoins.com
Dealer-Brokerage Services
Netcoins continues discussion with multiple leading Dealer-Brokerages in Canada to enable Canadian investors to buy and sell crypto from their cash trading accounts using their traditional brokers. Netcoins is also providing a business plan, including custodial options, to IIROC for regulatory evaluation in September/October.
“Netcoins is making significant progress on our mission to bring crypto to the masses. We are focused on becoming the leading crypto brokerage services firm in the country, with multiple lines of revenue generating business,” said Netcoins CEO, Mark Binns. “Our revenue curve from Q2 to Q3 shows that we are finding true product-market fit, and our customers are relying on us and referring us actively. We look forward to providing more updates on progress as it occurs.”
About the Company
The Company is in the business of developing software to make the purchase and sale of cryptocurrency easily accessible to the mass consumer and investor through brokerage services."
What stands out to us in this press release is:

1. Transactional revenue of $12.9 million so far for Q3, averaging $6.5 million each month, and likely weighted more towards August.
2. Generating positive cash flow of $64,000 in August.
3. Ending the month of August with over $5.5 million in cash.

Let's review the financial statements for Q2:



What can we learn from these results and comparing them to the end of June?

First, cash and equivalents have decreased $200,000 from $5.7 million to $5.5 million in two months. This claim of being cash flow positive for August would mean July would have been negative to offset that. However, this cash balance says nothing to the effect of the other working capital items. Did Netcoins use some of that cash to pay down trade payables? Is more money owed to the company through receivables? Did the cryptocurrency inventory increase (which would make sense in a rising revenue environment) through more purchases? Or did these account balances flow in the opposite direction to profitability?

The main point to gather from the cash balance - whether or not Netcoins pulled a slight profit in August or not - is that this company is at such a low and slowing burn rate that we can expect that cash balance to last without the need to finance for the foreseeable future. Cash went from $6.9 million to $5.7 million from Q1 to Q2, a $1.2 million drop. Over two months in Q3, it only dropped $200,000. A vast improvement. NETC's market cap in Canada is $12 million at $0.10 compared to the $5.5 million in cash with no debt. This quickly growing cryptocurrency business where investors can expect a reasonable chance of profitability soon is valued at an enterprise value of only $6.5 million.

Now to the income statement side. What we like about Netcoins' business is that it is very simple to understand from an operating perspective and analyze from a financial perspective. The company has set up a network to resell cryptocurrency and make a small mark-up on each transaction. For the first six months of the year, the company made $277,000 in gross profit on $10,218,000 in revenue, a 2.7% margin. That margin can be impacted by promotional rates throughout the year, but for simplicity's sake let's assume that the company achieved the same margin of 2.7% for July and August. Revenue for those two months was greater than the first six months combined, so it stands to reason that gross margin would be greater too. A 2.7% margin on $12.9 million in revenue leads to a $350,000 gross margin.

The net loss of $19.6 million for the first six months of the year looks ugly, but most of that is due to the substantial expense of the listing fees that were part of the reverse takeover of Gar Limited and the value of the stock options granted to management through the Black-Scholes valuation model. these options don't have any actual value unless the stock price surpasses $0.25 (lowest strike price) and $0.35 (the bulk of the options) within the next five years.


When you subtract out the $17.8 million comprising of these two line items, the operating expenses for the year are just over $2 million, or $340,000 per month. We estimated gross margin over the two months of Q3 to be $350,000 or $175,000 per month. That leaves a gap of $165,000 for average cash burn per month. Marketing was $600,000 for the first six months of the year, and is completely discretionary. If the marketing spend was a little less for Q3, and the revenue growth weighted more towards August, it is very conceivable that August was a profitable month in addition to being cash flow positive. Q3 has been boosted by significant transactions occurring on certain days, for instance. the company recorded $2 million in transactional revenue in one day in July. With the increasing web traffic to the site, and the ability to successfully complete 7-digit transactions, expect more users putting bigger orders through Netcoins.

Netcoins may be a profitable company as we speak. And if it's not, it will be soon at this pace. Once blockchain stocks get hot again, we expect NETC to be at the top of people's lists as one that has been successful in attaining profitable growth. The 52-week high was $0.65 on hype. The stock price is $0.10 now. You can see the return possibilities when Netcoins has industry hype AND the financial performance to back it up.

While the increasing price of Bitcoin and other cryptocurrencies would certainly help with sentiment on the stock, keep this in mind that should be made apparent from the business plan, the operating performance and the company's own statements - Netcoins is NOT impacted by falling cryptocurrency prices. A panic sell is just as good as a FOMO increase since it is volatility and volume that drives profitability to Netcoin's mark-up model. It does not have the same operating issues as the cryptocurrency miners when prices are low. NETC is the best cryptocurrency stock to own in our opinion because it will make money when cryptocurrencies go up or down. It will participate in the rise in sentiment during bull markets for cryptocurrency but will not go bankrupt during bear markets for cryptocurrency.

Disclosure: We are long NETC.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



Thursday, 6 September 2018

Trade Alert: A Cash Flow Positive Cryptocurrency Company

In our recent write ups we have been long on cannabis and cannabis-related stocks, which have worked out pretty well for us and our readers. We are now issuing a trade alert on a cryptocurrency company that announced that it achieved cash flow positive results for August, its sixth month of operations. This is an alert without much research because we wanted to move quickly so that our followers can take advantage of the opportunity, so make sure to do a level of due diligence that is acceptable to you. We are up to 660 followers despite not giving out a lot of alerts, a fact that we think is indicative of a 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.

Netcoins Holdings Inc. (GARLF) (NETC.CN) announced the following in its corporate update:

VANCOUVER, British Columbia, Sept. 06, 2018 (GLOBE NEWSWIRE) -- Netcoins Holdings Inc. (“NETC” or the "Company") (CSE: NETC(OTC: GARLF) is pleased to provide further transactions updates, plus information on its Retail, OTC and upcoming Dealer-Brokerage lines of businesses.
Revenues
In the first two months of Q3 of fiscal 2018 (July and August, 2018), Netcoins has generated $12.9 million in transactional revenues through its Retail and OTC lines of businesses. This represents a very substantial increase in revenue per day over Q1 and Q2, and was generated during months where Bitcoin experienced new 2018 lows below USD $6,000 per coin. Netcoins transactional revenues are not tied to the price of underlying cryptocurrencies, including Bitcoin.
Cash
At the end of August, Netcoins has over CAD $5.5M million in cash, and cash equivalents, with zero debt. Netcoins generated positive cash flow in August of $64,000, being the first cash flow positive month since going public in March 2018.
Coin Listings
Netcoins has now completed listing all of the top 7 coins by market cap, which is a substantial accomplishment, and makes our platform the only one in Canada to do so, to our knowledge. This also makes our platform more attractive to buyers/sellers/investors and also to altcoins as a place to be listed. 
Netcoins has listed (or has agreed to list) 7 new tokens in Q3. This has generated listing fees of approximately CAD $207,000 in Q3 thus far.
Retail Network
Our retail network continues to grow, with more than 21,000+ locations for acquiring crypto in Canada, Australia, and Europe. We have also added the ability for citizens of Kenya and Ghana to buy crypto from Netcoins with USD Flexepin vouchers. In the coming months, we expect to be adding Tanzania, Zambia, Uganda, Rwanda, South Africa, Nigeria, Zimbabwe, Malawi, Namibia and Botswana in the same fashion.
Further, we are seeking distribution partnerships to significantly expand the retail network in the coming months.
OTC Services
Netcoins OTC (Over-The-Counter) business, also known as our private brokerage, continues to gain strength in the global market. In Q3 so far, we have onboarded four cryptocurrency miners providing them with liquidity in addition to serving crypto hedge fund operators, crypto brokers and high net worth individuals. Our OTC business provides three distinct market advantages:
  1. Market Leading Service Fees
  2. Speed of Payment (often same day)
  3. Personalized Account Rep and an Always-on OTC platform for transactions at otc.gonetcoins.com
Dealer-Brokerage Services
Netcoins continues discussion with multiple leading Dealer-Brokerages in Canada to enable Canadian investors to buy and sell crypto from their cash trading accounts using their traditional brokers. Netcoins is also providing a business plan, including custodial options, to IIROC for regulatory evaluation in September/October.
“Netcoins is making significant progress on our mission to bring crypto to the masses. We are focused on becoming the leading crypto brokerage services firm in the country, with multiple lines of revenue generating business,” said Netcoins CEO, Mark Binns. “Our revenue curve from Q2 to Q3 shows that we are finding true product-market fit, and our customers are relying on us and referring us actively. We look forward to providing more updates on progress as it occurs.”
About the Company
The Company is in the business of developing software to make the purchase and sale of cryptocurrency easily accessible to the mass consumer and investor through brokerage services.
The market is reacting positively to this news so far. NETC is up 15% in Canada to $0.11 on nearly four million volume traded, but we think it should be up a lot more. To be able to get these kinds of revenue numbers and attain cash flow positive operations in the sixth month during weak times for Bitcoin trading is huge. NETC has a 52-week high of $0.65 so it is defintely overdue for a substantial turnaround, especially if Bitcoin picks up.

Disclosure: We are long NETC.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



Wednesday, 5 September 2018

Making More Wins From Cannabis Plays

In our write up from yesterday "KBEV Announces World's First Cannabis Nootropic Beverage", we recommended Koios Beverage Corp. (SNOVF) (KBEV.CN) after it closed at $0.35 in Canada on Tuesday. Let's just say it did well as we expected as it closed up 54% to $0.54. While it is so easy to make money on cannabis stocks, we might as well keep on with them with another new pick and a reiteration of an undervalued favorite. We are up to 658 followers despite not giving out a lot of alerts, a fact that we think is indicative of a 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.

Centric Health Corporation (CHHHF) (CHH.TO) moved up 48% on nearly a million volume on the OTC symbol and 7.5 million in Toronto on the announcement of a strategic partnership with Canopy Growth (CGC) (WEED.TO):

TORONTO and SMITHS FALLS, ON, Sept. 5, 2018 /CNW/ - Centric Health Corporation ("Centric Health" or the "Company") (TSX:CHH) today announced that it has entered into multi-year supply and service agreements with Canopy Growth Corporation ("Canopy Growth") (TSX: WEED; NYSE: CGC) for the provision of medical cannabis. Under the agreements, Canopy Growth will be the preferred education partner and supplier of choice of medical cannabis primarily through its Spectrum Cannabis brand to Centric Health and the seniors that it serves both in long-term care and retirement residences, as well as seniors living in the community.

Spectrum Cannabis and Centric Health will work collaboratively to educate Centric Health's clinical pharmacists, as well as other healthcare partners, residents and seniors and their families, on the benefits and potential applications of medical cannabis. Centric Health's clinical pharmacists are in an ideal position to provide guidance on the safe use of medical cannabis as they are specially trained in geriatric medicine. Many seniors face significant barriers when it comes to access and knowledge around the benefits of medical cannabis but with the support of trained pharmacists and educators, the seniors that Centric Health serves and those living within the community will have the ability to receive assessments and on-going support from a pharmacist to ensure the highest degree of safety and efficacy. Centric Health's unwavering commitment to quality care and resident outcomes through their existing pharmacy operations and focused strategy of expanding service offerings to seniors in the community makes for an ideal long-term strategic partnership. 

"We believe that our partnership with Centric Health will help reduce many of the existing gaps in the continuing care space by having a trusted partner at our side who can provide education, assist in policy development and, most importantly, provide clinical pharmacist oversight of medical cannabis through medication management," said Mark Zekulin, President & Co-CEO, Canopy Growth. "The continuing care space is comprised of a patient population that can greatly benefit from the therapeutic effects of medical cannabis."

Canopy Growth and Centric Health have also entered into a separate business development agreement wherein Canopy Growth has advanced funds to Centric Health to help with improved education and assistance programs. As part of the business development agreement, Centric Health issued 850,000 warrants to Canopy Growth at an exercise price of $0.25 per common share for a life of 48 months with the vesting date set at September 4, 2020.

"Our strategic relationship with Canopy Growth leverages Centric's national Specialty Pharmacy footprint and respected clinical pharmacists with their sophisticated educational platform and range of medical cannabis products, including the Spectrum Cannabis line that makes it easy for seniors to understand the strength and dosage of the medical cannabis they are using as part of their treatment program," said David Murphy, Centric Health's President and Chief Executive Officer. "The combination of Centric Health and Canopy Growth capabilities will ensure that, where a healthcare practitioner has determined medical cannabis is appropriate, seniors and home operators will have the best possible support and oversight for medical cannabis treatments."

We think that the stock mainly moved up on the attachment to CGC, rather than the generic idea of being able to provide medical marijuana to the elderly residents of its buildings. We think that the business development agreement where CGC paid money upfront in exchange for CHH's participation in education and assistance programs is key.

We are having a difficult time in deciphering exactly how CHH will make money off of this agreement and have come to the conclusion that it is likely Canopy paying CHH through increased awareness to a potentially lucrative market that may be resistant to medical marijuana. Many retired people in North America grew up with the "war on drugs" as part of their political culture. This will be a challenge to break that moral code but if CHH can do it, it will be a massive achievement for the cannabis industry at large but for these two companies specifically. CGC may be seeking the expertise of CHH to crack this lucrative market.

CHH has otherwise been struggling with stagnant growth and lack of profitability, so this agreement with CGC might be exactly what it needs to get a shot in the arm. We think that shot in the arm will come primarily from the stock performance side in the short term and business development side much later. As in other words, we will be playing the spike on the hot cannabis sector and attachment to CGC in particular, but this is not a mid nor long-term hold for us.

In terms of a medium term hold, since our article "Buying Cheap Cannabis Warrant Plays In Preparation For Fall Pop" and "The Best Way To Play Cannabis Right Now", we have been highly recommending HIP.WT.A. The warrants have risen from $0.12 to $0.26 but despite that, we have purchased more warrants on Wednesday. As of August 31, the value chart on Canadianwarrants.com has HIP.WT.A valued at $0.62:


Here is an excerpt from our write up "Explaining HIP.WT.A And Why You Want To Buy The Warrants Over Stock". The prices used in the example are out of date but it still serves its purpose of illustrating the value in HIP.WT.A as a long term leveraged security in a hot cannabis sector.

HIP.WT.A are warrants on Newstrike Brands (HIP.CN) trading in Canada. The warrants came about from a financing that closed in June:

"TORONTO, June 19, 2018 (GLOBE NEWSWIRE) -- Newstrike Resources Ltd. (TSXV:HIP) (“Newstrike” or the “Company”) is pleased to announce that it has closed its previously announced short form prospectus offering on a bought deal basis, including the full exercise of the over-allotment option. A total of 69,000,000 units of the Company (“Units”) were sold at a price of $0.75 per Unit (the “Issue Price”), for aggregate gross proceeds to the Company of $51,750,000 (the “Offering”).

Each Unit is comprised of one common share of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant is exercisable to acquire one Common Share at an exercise price of $1.00 per share, subject to adjustment in certain events, until June 19, 2023."

HIP.WT.A has a strike price of $1.00 on HIP and expires in June 2023. That means if you hold the warrants, you have the right to buy HIP at $1.00 any time between now and nearly 5 years from now by exercising them. Since they trade on the open market, you can always sell them at any time before then too, and it is usually the preferable move because of time value. HIP is less than $1.00 now, so HIP.WT.A's value is in the ability to spend less money to gain a position in HIP in hopes that it does go up well over $1.00 within the next few years. The easiest way to explain this is in a chart:









Here are the choices in our example, just to make the math clean and easy to follow. You can either buy 10,000 HIP shares at $0.77 for $7,700 or 10,000 HIP.WT.A at $0.21 for $2,100, 20,000 warrants for $4,200 or 30,000 warrants for $6,300. In all three scenarios you would be risking less than the $7,700 you would spend on shares.

HIP is a risky stock, very much an all-or-nothing play. We think that five years from now it will either be much higher than $0.77 or a failed investment, and that most people interested in the stock will feel the same.

Looking at the chart, if HIP becomes a complete dud and goes to $0.10, your warrants are worthless. But the shares also took a big hit and because you risked less money on the warrants, you lost less money overall. You would lose $6,700 on the stock in this scenario but only $2,100 to $6,300 on the warrants, depending on how much you bought.

Now let's look at the other extreme. Let's say HIP is a success and goes to $3.00 (and keep in mind it was higher than this price earlier this year on hype). Someone who bought 10,000 shares at $0.77 has a position worth $30,000 now and cashed in $22,300 of profits. But someone who instead bought 30,000 warrants saw their $6,300 investment turn into $60,000 for a $53,700 profit. You either have the choice to exercise the warrants, where you pay $30,000 to buy 30,000 shares and immediately sell them for $90,000 or sell HIP.WT.A on the open market where it should be worth at least the intrinsic value of the warrants ($3 less $1 strike) plus maybe a few cents time value depending on how many years are left on the warrants.

Why do you want to buy HIP.WT.A instead of HIP? Simple. You have the opportunity to risk LESS money for GREATER upside. The caveat to this is in the middle of the chart. If HIP stays at $0.77 or goes only to $1.00, the shares make some money but the warrants get wiped out. But keep in mind that you have nearly FIVE YEARS for this position. That is a long time and any investor should assume that HIP is either a $3.00+ or $0.10 stock by then. And if by next year you decide you don't like HIP, there is still plenty of time to sell the warrants for some value as they will still have 3-4 years time left and someone else will pay for that gamble.

There is also HIP.WT. We actually traded these warrants with success earlier in the year. See our write up "Cannabis is on the Rise Again". The difference between HIP.WT.A and HIP.WT is the terms of the warrants. HIP.WT have a strike price of $1.75 and expire in February 2020. The higher strike price and less time value makes these warrants much more risky. HIP could double to $1.50 and both shareholders and HIP.WT.A holders make good money but HIP.WT holders get wiped out. Otherwise the same trading strategy as presented in the above chart applies but with the $1.75 strike price instead of $1.00. We think it is best to buy and hold HIP.WT.A until HIP hits around $1.20 and then HIP.WT starts to make more sense as the leveraged upside buy.

Disclosure: We are long HIP.WT.A and CHH

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


Tuesday, 4 September 2018

KBEV Announces World's First Cannabis Nootropic Beverage

Since our write up on August 14 called "Buying Cheap Cannabis Warrant Plays In Preparation For Fall Pop", cannabis stocks have done extremely well. This includes the leveraged warrants we recommended in our report - KALY.WT and HIP.WT.A - though the sector is still led by Canopy Growth Corporation (CGC)(WEED.TO). We expect smaller players like these ones and our next pick to play catch up as long as CGC remains strong and investors will look for cheap cannabis stocks. On Tuesday, a beverage maker came onto our radar screen after announcing the world's first cannabis drink of its kind and we think it will have much more to run. We are up to 656 followers despite not giving out a lot of alerts, a fact that we think is indicative of a 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.

Koios Beverage Corp. (SNOVF) (KBEV.CN) moved up 75% to $0.35 in Canada on 3 million volume after announcing that it will release the world's first Cannabis Nootropic Beverage:

"VANCOUVER, Sept. 4, 2018 /CNW/ - Koios Beverage Corp. (CSE: KBEV)(OTC: SNOVF) (the "Company" or "Koios") is pleased to announce it will be launching two additional products in October to augment its existing line of beverages.

The first product slated for release in October is a beverage infused with cannabidiol (CBD), a cannabinoid derived from hemp plants, along with Koios' proprietary nootropic stack.

CBD is commonly used in medical practice to deal with inflammation, pain, anxiety, and epileptic seizures. Unlike THC, which is also produced in the cannabis plant, CBD is not a psychoactive cannabinoid and does not cause the sensation of 'getting high' which is often associated with marijuana.

Nootropic supplements are used to enhance human productivity without using harmful chemicals or stimulants.  Koios products can enhance focus, concentration, mental capacity, memory retention, cognitive function, alertness, brain capacity and create all day mental clarity.

"We are just scratching the surface of what cannabinoids like CBD can do for human health," said Miller. "CBD is the best researched of all the cannabinoids within the cannabis plant, and is well known for its restorative effect on human health, and in dealing with various types of pain.

"With our focus on creating optimal human performance and health through our natural supplements, a CBD-infused beverage was a natural next step," Miller added. "With our current nootropic stack we will bring a product to market that aims to produce high levels of natural focus while simultaneously creating calming effects for the end user. A CBD infused beverage will be a tremendous value to the market and will allow us to come one step closer to realizing our vision of helping a billion people live healthier lives."

The second product slated for October will also be released through the Cannavated subsidiary, and will be a collaboration with the Company's partner Keef Brands, a division of CanCore Concepts Inc. (CanCore).

Keef Brands will manufacture, market and sell a line of beverages that are not only infused with THC, but also contain the nootropic supplements from the Koios line of brain enhancing functional beverages. The resulting product will be the first in the world to combine cannabis infusion with nootropic supplements that enhance the consumer's mental acuity.

Keef Brands has the exclusive rights to the Koios blend for Colorado, with the option of expanding the licensing agreement to Canada and the U.S., provided it complies with all rules and regulations in the markets where cannabis has been made legal.

The timing of the release of these products was pushed back due to the overwhelmingly positive result we have had launching our Pear Guava flavour. 

"The product sold out in its first month and forced us to alter our production schedule to meet the demand of our customers and retail partners," said Miller. "The timing on these new releases is critical and we want to ensure proper vertical alignment with our distributors as we approach the busy season.""

The first of anything for cannabis is sure to turn some heads in this hot industry and KBEV ended at its day high of $0.35, a signal that it has a good chance to continue its run. The fact that the product sold out in the first month is encouraging as the hype is on the product side as much as it is on the stock side. KBEV has a reasonable 50 million shares outstanding, something that investors and traders should look for when trying to find the next multi-day, multibagger runner.

In this market environment, we think that KBEV has as good of a chance as any to run hard. Though one has to be wary that all microcap risks are still applicable to it, like the risk of dilution and being susceptible to a cooling off period in cannabis. However, we think that cannabis will remain hot for the next little while and that the risks of immediate dilution are small. The sky is the limit for how high KBEV could go in our opinion. It all depends on market sentiment over this potential game-changer for the cannabis drinks and healthy living industries.

Disclosure: We are long KBEV.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



Monday, 27 August 2018

Still The Best Way To Play Cannabis, Plus A New Gold Area Play

Since our write up two weeks ago "Buying Cheap Cannabis Warrant Plays In Preparation For Fall Pop", HIP.WT.A has more than doubled for us and our followers to $0.28. We think that these warrants are still the best cannabis play out there right now and has much more to move. Another low-float gold area play has been brought to our attention and we think it is set to run further. We are up to 650 followers despite not giving out a lot of alerts, a fact that we think is indicative of a 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.

HIP.WT.A are warrants on Newstrike Brands (HIP.CN) trading in Canada. The stock closed at $0.80 along with the warrants at $0.28 on Monday. The warrants came about from a financing that closed in June:

"TORONTO, June 19, 2018 (GLOBE NEWSWIRE) -- Newstrike Resources Ltd. (TSXV:HIP) (“Newstrike” or the “Company”) is pleased to announce that it has closed its previously announced short form prospectus offering on a bought deal basis, including the full exercise of the over-allotment option. A total of 69,000,000 units of the Company (“Units”) were sold at a price of $0.75 per Unit (the “Issue Price”), for aggregate gross proceeds to the Company of $51,750,000 (the “Offering”).

Each Unit is comprised of one common share of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant is exercisable to acquire one Common Share at an exercise price of $1.00 per share, subject to adjustment in certain events, until June 19, 2023."

HIP.WT.A has a strike price of $1.00 on HIP and expires in June 2023. That means if you hold the warrants, you have the right to buy HIP at $1.00 any time between now and nearly 5 years from now by exercising them. Since they trade on the open market, you can always sell them at any time before then too, and it is usually the preferable move because of time value. HIP is less than $1.00 now, so HIP.WT.A's value is in the ability to spend less money to gain a position in HIP in hopes that it does go up well over $1.00 within the next few years.

In our write up "Explaining HIP.WT.A And Why You Want To Buy The Warrants Over Stock", HIP was at $0.77 and HIP.WT.A was at $0.205. Since then, the stock has increased 4% but the warrants 37%, so the advantage of buying the warrants over the stock is closing, but it is still there. The easiest way to explain this is in a chart, which we have updated from the one we made in the previous report:









Here are the choices in our example, just to make the math clean and easy to follow. You can either buy 10,000 HIP shares at $0.80 for $8,000 or 10,000 HIP.WT.A at $0.28 for $2,800, 20,000 warrants for $5,600 or 30,000 warrants for $8,400. Previously, in all three scenarios you would have been risking less than the money you would spend on shares, but since HIP.WT.A has outperformed the stock, 30,000 warrants cost more than 10,000 shares now (but may still be worth it).

HIP is a risky stock, very much an all-or-nothing play. We think that five years from now it will either be much higher than $0.80 or a failed investment, and that most people interested in the stock will feel the same.

Looking at the chart, if HIP becomes a complete dud and goes to $0.10, your warrants are worthless. But the shares also took a big hit and because you risked less money on the warrants, you lost less money overall. You would lose $7,000 on the stock in this scenario but only $2,800 to $5,600 on 10,000 to 20,000 warrants. If you purchased 30,000 warrants, you would have lost $8,400 overall.

Now let's look at the other extreme. Let's say HIP is a success and goes to $3.00 (and keep in mind it was higher than this price earlier this year on hype). Someone who bought 10,000 shares at $0.80 has a position worth $30,000 now and cashed in $22,000 of profits. But someone who instead bought 30,000 warrants saw their $8,400 investment turn into $60,000 for a $51,600 profit. You either have the choice to exercise the warrants, where you pay $30,000 to buy 30,000 shares and immediately sell them for $90,000 or sell HIP.WT.A on the open market where it should be worth at least the intrinsic value of the warrants ($3 less $1 strike) plus maybe a few cents time value depending on how many years are left on the warrants.

Why do you want to buy HIP.WT.A instead of HIP? Simple. You have the opportunity to risk LESS money for GREATER upside. The caveat to this is in the middle of the chart. If HIP stays at $0.80 or goes only to $1.00, the shares make some money but the warrants get wiped out. But keep in mind that you have nearly FIVE YEARS for this position. That is a long time and any investor should assume that HIP is either a $3.00+ or $0.10 stock by then. And if by next year you decide you don't like HIP, there is still plenty of time to sell the warrants for some value as they will still have 3-4 years time left and someone else will pay for that gamble.

There is also HIP.WT. We actually traded these warrants with success earlier in the year. See our write up "Cannabis is on the Rise Again". The difference between HIP.WT.A and HIP.WT is the terms of the warrants. HIP.WT has a strike price of $1.75 and expires in February 2020. The higher strike price and less time value makes these warrants much more risky. HIP could double to $1.60 in the next two years and both shareholders and HIP.WT.A holders make good money but HIP.WT holders get wiped out. Otherwise the same trading strategy as presented in the above chart applies but with the $1.75 strike price instead of $1.00. We think it is best to buy and hold HIP.WT.A until HIP hits around $1.20 and then HIP.WT starts to make more sense as the leveraged upside buy.

Take a look at the value chart on Canadianwarrants.com:



This chart was updated on August 24th. At a price of $0.76 for HIP, this site gave HIP.WT.A a value of $0.59, which was 2.5x higher than the $0.235 price it was at the time, and still 2.1x higher than HIP.WT.A's $0.28 close on Monday (with HIP 4 cents higher).  HIP.WT is also trading at a bargain, with a value of $0.24 versus a price of $0.085 at the time, making it undervalued by 2.8x or 2.5x its close of $0.095 on Monday. Last week, HIP.WT.A was relatively cheaper than HIP.WT, but that has since flipped thanks to the volatile and rising stock price. We still think HIP.WT.A is the better warrant to play right now because its strike price is closer to being in-the-money, making its vega higher, but that can change if HIP rises well above $1.00. Either one of these warrants will make holders a lot of money on less money risked than holding HIP shares should the stock price continue to move quickly like it has for the latter half of August.

Why does this website value HIP.WT.A at $0.59? Because that's how much the time value should be worth with five years left for the opportunity. Imagine our chart above but if HIP.WT.A was trading at $0.35 instead of $0.28. You could buy 20,000 warrants for $7,000 instead of 10,000 shares for $8,000 and still have a more favorable outcome once HIP hits $3.00. The fact that you can buy at $0.28 instead and have an even better leveraging opportunity than what should exist should be considered a bonus that bulls on HIP cannot not pass up in our opinion.

Another stock to pay close attention to is BTU Metals Corp. (BTU.CN), which popped over 100% on Friday after announcing that it acquired the Dixie Halo Property which is contiguous to Great Bear’s Dixie Project in the Red Lake District in Ontario, Canada:

"Vancouver, British Columbia (FSCwire) - BTU METALS CORP. (“BTU” or the “Company”) (BTU-TSX:V)  pleased to announce that the Company has acquired 10 claims comprising 85 units (1,514 hectares) adjoining the northern and eastern boundaries of Great Bear Resources Corp.’s (GBR – TSX:V) Dixie Project located in the Red Lake District of Ontario. Great Bear recently reported a high-grade discovery in drill core assaying 16.35 meters of 26.91 g/t gold and 7 meters of 44.47 g/t gold in two holes on the “Hinge Zone” at the Great Bear’s Dixie Project (see PR dated August 22, 2018).

The Dixie Halo property wraps around the north-eastern and eastern portions of the Great Bear’s Dixie Project. The northwestern portion of the Dixie Halo property is approximately 2.3 kilometers northeast of Great Bear’s “North West Step-Out” target and approximately 4.5 kilometers northeast of the “Hinge Zone”. Portions of the Dixie Halo property were actively explored as recently as 2008 (Trueclaim Resources Inc.-Assessment Report # 20006619) with two drill holes located within 250 meters of the Dixie Halo property boundary. A complete review of the assessment files will be initiated immediately."

Great Bear (GBR.CN) has jumped from $0.72 to $1.95 in the week since the discovery was made on its property. The Sokoman Iron Corp (SIC.CN) area plays didn't have much staying power as SIC has dropped 50% from its high, so keep that in mind when trading these types of stocks. However, the move on GBR appears to be stronger and the trading on BTU looks really good. BTU jumped 114% on Friday, but closed at its day low of $0.075. After dropping to $0.06 in early trading on Monday, it perked up considerably in the afternoon to close at $0.08. We think it will challenge and break through that $0.105 high that it made on Friday. It has 36.5 million shares outstanding for a $3 million market cap compared to a $47 million market cap for GBR. It did a recent financing at $0.06, but those shares are on lock-up until October. This is not a typical "value trade" that we like, but rather a favorable chart setup on a stock that could move a lot on hype. 

Disclosure: We are long HIP.WT.A and BTU.

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, 23 August 2018

Explaining HIP.WT.A And Why You Want To Buy The Warrants Over Stock

In our write up called "Buying Cheap Cannabis Warrant Plays In Preparation For Fall Pop", we have so far been correct in calling another run in the cannabis industry. HIP.WT.A has nearly doubled for us and our followers but we think that it makes the best cannabis play out there right now and it still has much more to move. There have been some questions and misunderstandings about these warrants so we will use this write up to explain the opportunity. We have also found an extremely low-float non-cannabis stock that we think is due for a huge run. We are up to 647 followers despite not giving out a lot of alerts, a fact that we think is indicative of a 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.

HIP.WT.A are warrants on Newstrike Brands (HIP.CN) trading in Canada. The stock closed at $0.77 and the warrants at $0.205 on Wednesday. The warrants came about from a financing that closed in June:

"TORONTO, June 19, 2018 (GLOBE NEWSWIRE) -- Newstrike Resources Ltd. (TSXV:HIP) (“Newstrike” or the “Company”) is pleased to announce that it has closed its previously announced short form prospectus offering on a bought deal basis, including the full exercise of the over-allotment option. A total of 69,000,000 units of the Company (“Units”) were sold at a price of $0.75 per Unit (the “Issue Price”), for aggregate gross proceeds to the Company of $51,750,000 (the “Offering”).

Each Unit is comprised of one common share of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant is exercisable to acquire one Common Share at an exercise price of $1.00 per share, subject to adjustment in certain events, until June 19, 2023."

HIP.WT.A has a strike price of $1.00 on HIP and expires in June 2023. That means if you hold the warrants, you have the right to buy HIP at $1.00 any time between now and nearly 5 years from now by exercising them. Since they trade on the open market, you can always sell them at any time before then too, and it is usually the preferable move because of time value. HIP is less than $1.00 now, so HIP.WT.A's value is in the ability to spend less money to gain a position in HIP in hopes that it does go up well over $1.00 within the next few years. The easiest way to explain this is in a chart:









Here are the choices in our example, just to make the math clean and easy to follow. You can either buy 10,000 HIP shares at $0.77 for $7,700 or 10,000 HIP.WT.A at $0.21 for $2,100, 20,000 warrants for $4,200 or 30,000 warrants for $6,300. In all three scenarios you would be risking less than the $7,700 you would spend on shares.

HIP is a risky stock, very much an all-or-nothing play. We think that five years from now it will either be much higher than $0.77 or a failed investment, and that most people interested in the stock will feel the same.

Looking at the chart, if HIP becomes a complete dud and goes to $0.10, your warrants are worthless. But the shares also took a big hit and because you risked less money on the warrants, you lost less money overall. You would lose $6,700 on the stock in this scenario but only $2,100 to $6,300 on the warrants, depending on how much you bought.

Now let's look at the other extreme. Let's say HIP is a success and goes to $3.00 (and keep in mind it was higher than this price earlier this year on hype). Someone who bought 10,000 shares at $0.77 has a position worth $30,000 now and cashed in $22,300 of profits. But someone who instead bought 30,000 warrants saw their $6,300 investment turn into $60,000 for a $53,700 profit. You either have the choice to exercise the warrants, where you pay $30,000 to buy 30,000 shares and immediately sell them for $90,000 or sell HIP.WT.A on the open market where it should be worth at least the intrinsic value of the warrants ($3 less $1 strike) plus maybe a few cents time value depending on how many years are left on the warrants.

Why do you want to buy HIP.WT.A instead of HIP? Simple. You have the opportunity to risk LESS money for GREATER upside. The caveat to this is in the middle of the chart. If HIP stays at $0.77 or goes only to $1.00, the shares make some money but the warrants get wiped out. But keep in mind that you have nearly FIVE YEARS for this position. That is a long time and any investor should assume that HIP is either a $3.00+ or $0.10 stock by then. And if by next year you decide you don't like HIP, there is still plenty of time to sell the warrants for some value as they will still have 3-4 years time left and someone else will pay for that gamble.

There is also HIP.WT. We actually traded these warrants with success earlier in the year. See our write up "Cannabis is on the Rise Again". The difference between HIP.WT.A and HIP.WT is the terms of the warrants. HIP.WT have a strike price of $1.75 and expire in February 2020. The higher strike price and less time value makes these warrants much more risky. HIP could double to $1.50 and both shareholders and HIP.WT.A holders make good money but HIP.WT holders get wiped out. Otherwise the same trading strategy as presented in the above chart applies but with the $1.75 strike price instead of $1.00. We think it is best to buy and hold HIP.WT.A until HIP hits around $1.20 and then HIP.WT starts to make more sense as the leveraged upside buy.

Take a look at the value chart on Canadianwarrants.com:


This chart was updated on August 20th which is already far out of date compared to current market prices but can still be used as an illustration of relative value. At a price of $0.55 for HIP, this site gave HIP.WT.A a value of $0.39, which was 2.4x higher than the $0.16 price it was at the time. HIP.WT is also trading at a bargain as well, with a value of $0.12 versus a price of $0.06, making it undervalued by 2x. But on relative terms, HIP.WT.A is cheaper than HIP.WT. That's why HIP.WT.A is the preferred buy, though HIP.WT is by no means a bad decision. With HIP being at $0.77, HIP.WT.A would be worth much more than $0.39 once this website updates its chart.

Why does this website value HIP.WT.A at $0.39? Because that's how much the time value should be worth with five years left for the opportunity. Imagine our chart above but if HIP.WT.A was trading at $0.35 instead of $0.21. You could buy 20,000 warrants for $7,000 instead of 10,000 shares for $7,700 and still have a more favorable outcome once HIP hits $3.00. The fact that you can buy at $0.21 instead and have an even better leveraging opportunity than what should exist should be considered a bonus that bulls on HIP cannot not pass up in our opinion.

Another stock to pay close attention to is Tel-Instrument Electronics Corp. (TIK) which we think is about to go on a huge run after releasing its Q1 2018 results ended June. We first called it on August 20th, and it has moved up a little bit - from $2.90 to $3.05 - since. TIK is valued at less than $10 million market cap. For that kind of market cap, its financial performance is what you would expect with stagnant revenues and operating losses. However, it's not the past that we are looking at when looking at a potential big spike, but the near future. TIK's management is painting a picture of the future that looks quite bright in the Q1 SEC filing released Monday evening:

"We have recently been informed by Germany that they plan to award a contract to the Company for 275 TS-4530A test sets, which should result in a multi-million dollar contract for the Company. This award is currently being protested by an unsuccessful bidder, but we hope to receive this contract within the next few months. We are also currently pursuing opportunities in Australia and other areas in the Middle East and Canada. We have just started to receive orders from the overseas markets, and we will continue to actively market our products to all of the major international customers. Our expectation is that we will significantly improve both our revenues and gross margins starting sometime in the 2019 calendar year, but because the timing of these new orders is largely out of our hands, we expect to see continued volatility in our quarterly revenues. Nonetheless, we are encouraged by the increasing activity we are seeing for both our commercial and military products."

The company already disclosed some details about the German contract last week which resulted in a huge pop in the stock price. With expectations of a significant operating improvement in 2019 and additional international orders, we expect further good news from the company coming soon.

The real key to the opportunity on TIK is that it is a small float stock that is tightly held with minimal dilution possible. Take note of this in the Q1 filing:


The stock only has less than 3.3 million shares outstanding, but more importantly has only 4 million shares authorized. That means the risk of dilution while holding it is limited to that few hundred thousand, if any at all. This is very important because many traders get caught up in dilutive financing deals that are announced overnight on these super small float plays and get badly burned. This won't happen on TIK, at least not until management seeks approval to increase the authorized share count beyond 4 million.

The other key to seeing this stock fly would be its float. From Yahoo Finance:


TIK shares are 56% held by insiders which means the float is a mere 1.3 million! One of only a handful of stocks to boast such a low float. The fact that it has a cap on the amount of shares it can issue at 4 million makes it even rarer since it will not be able to easily dilute, for instance, like what we are seeing on HMNY right now. We think that TIK can repeat its performance as a big gainer, following up its spike on the German contract news from last week.

Disclosure: We are long HIP.WT.A and TIK.

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