Welcome to the latest installment of
Bud," a column where we take a look at some of the
most promising stocks and brands in the legal cannabis
Last week, Elixinol (OTC:
ELLXF) snapped up a 25-percent
stake in Altmeds, a company that makes CBD products for
The deal was worth about $6 million. Not bad for
a company that did $8.1 million in 2018, and has delivered 16
consecutive quarters of revenue growth.
Although some folks might dismiss the market for
CBD-based pet products, itâs actually quite lucrative. According to
New Frontier Data, the cannabis-based pet care market is expected
to be worth $125 million by 2022.
Itâs actually one of the fastest-growing sectors in the CBD market,
with this figure representing a five-year CAGR of 57 percent.
Of course, $125 million is merely an accounting
error compared to the global market for cannabis, but one that, if
approached correctly, could pay off quite well.
Certainly this is the case with Altmeds, and will
likely be the case with other producers of cannabis-based pet
products. Especially considering there really arenât that many
legitimate players in the space yet.
Take True Leaf Medicine (OTC:
True Leaf is a global cannabis and hemp wellness
brand for pets thatâs actually been in the game since
Its products, which include offerings to help
pets with anxiety, general health, and hip and joint pain, are sold
in more than 2,000 stores throughout North America and Europe. It
has deals with the following retailers:
Sales for fiscal year 2018 came in at $1.06
million, representing a year-over-year increase of 280 percent with
a 45-percent gross margin.
Much like Altmeds, True Leaf has enjoyed steady
revenue growth, and quite frankly, could also end up making a nice
acquisition for either another cannabis brand or one of the bigger
suppliers of pet products, such as Nestle Purina or Mars Pet.
Make no mistake: Thereâs a lot of money in
cannabis-based pet products. And companies such as True Leaf and
Altmeds are making it.
For the most part, Iâm not a fan of gummies.
I donât need the sugar, and my past experiences
with gummies havenât typically been good. Mostly due to dosing
That being said, there is one brand of gummy that
youâll usually find in my magic box of happiness (a.k.a. - my lock
box where I keep all my weed). And thatâs PLUS Products (OTC: PLPRF).
The company has six regular offerings, but Iâm
particularly fond of its Blackberry & Lemon product called,
Restore has proven to be a great relaxation aid
as it does a very nice job at luring me into a state of calmness,
but without the lethargy. Itâs a pleasant high, and since each
piece is just a micro-dose, I have better control over how much I
want to consume.
Unlike a lot of other gummies, Restore actually
tastes pretty good. You can still taste the cannabis in it, but
itâs not off-putting. Itâs not too sweet, either.
I would say this is not for the consumer looking
for an intense high. The high on Restore is subtle, and works well
if you just need something to take the edge off. If your tolerance
is high, you will need to take a few to feel the effects. But for
me, one or two gummies can do the trick, thus revealing my
child-like tolerance level.
Long-time cannabis consumers seem to be mixed on
PLUS, but newbies and baby boomers love it. Most likely because
these are micro-doses, and are branded in a way that doesnât say,
âHey take this gummy and get blasted!â Even the packaging
suggests this is more for the non-stoner.
I suppose this is one of the reasons PLUS, which
is public and trades over-the-counter under the symbol âPLPRFâ,
seems to get a lot of love from analysts who understand& the
future of cannabis profits will be found in the consumer behavior
of newbies and baby boomers. Cannacord
actually has a $6 price target on this thing, which is more
than 70 percent higher than where itâs trading today.
In any event, while Iâm not a newbie, and I
havenât entered my golden years just yet, if Iâm not looking to
fly, but instead settle in with a good book or movie, PLUS never
Jeff Siegel is the co-founder and managing
editor of Green Chip
Stocks, a private investment community focused on
socially-responsible investing. He is an expert in renewable energy
and cannabis investing, has been a featured guest on Fox, CNBC and
Bloomberg Asia, and is the author of the best-selling book,
"Investing in Renewable Energy: Making Money on Green Chip
Photo by Javier Hasse.
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