Thursday, 19 April 2018

Short Aceto As It Heads Into Bankruptcy

Aceto Corporation (ACET) tanked 64% to $2.66 on Thursday on a very ominous press release "ACETO Board Takes Proactive Steps to Address Business and Financial Challenges". We were originally looking at this company as a long for a bounce play but settled as a strong short as it is very highly likely headed into bankruptcy after doing our research. We are up to 587 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 handle @StockTradePicks. If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

The first thing we would like to address is the appointment of Rebecca Roof as Interim CFO:

"The Board announced the appointment of Rebecca Roof as Interim CFO and the resignation of CFO Edward Borkowski, who has decided to pursue another opportunity. Ms. Roof is a highly experienced finance professional and a Managing Director at AlixPartners LLP. While at AlixPartners, Ms. Roof has served as Interim Chief Financial Officer of the Eastman Kodak Company, Atkins Nutritionals, Anchor Glass Corporation, Fleming Foods, and several privately held entities. Her pharmaceutical and specialty chemicals experience includes leadership roles at Taro Pharmaceuticals and LyondellBasell, also while at AlixPartners."

Every single one of those firms mentioned in the press release as places she worked at as "interim" CFO or in another capacity went through bankruptcy proceedings:

The pattern here is undeniable. Companies hire Ms. Roof as "Interim" CFO for the express purpose of going into bankruptcy and emerging as a new company with the old equity wiped out. That's why she is always interim. Once the job is done, she moves on. It's clear that ACET management sees the writing on the wall here and expects to be going into bankruptcy with the equity wiped out. ACET is foretelling it in the press release by telling everyone all the firms she worked at while the companies went into Chapter 11 bankruptcy. There may have been other firms she worked at that avoided that fate but the company didn't list those ones. 

Look at the balance sheet:



There is $617 million in liabilities, over half of it in the form of debt, against a billion of assets. At first glance, this is not SO bad. But this is an adverse industry that is very competitive and ACET is fully admitting that it is struggling to compete. The company in its own words said:

"ACETO Corporation (Nasdaq: ACET), an international company engaged in the development, marketing, sale and distribution of Human Health products, Pharmaceutical Ingredients and Performance Chemicals, announced, in light of the persistent adverse conditions in the generics market, it is negotiating with its bank lenders a waiver of its credit agreement with respect to its total net leverage and debt service coverage financial covenants in the fiscal third quarter, and that the financial guidance issued on February 1, 2018, should no longer be relied upon. In addition, the Company anticipates recording non-cash intangible asset impairment charges, including goodwill, in the range of $230 million to $260 million on certain currently marketed and pipeline generic products as a result of continued intense competitive and pricing pressures."

When we look at a company like this, we should only compare the liquid assets against the liabilities. ACET has only $64 million in cash and $477 million in current assets, well short of the liabilities. With Ms. Roof coming on board, the direction is clear. ACET is headed towards restructuring and the equity is headed to zero, or very close to it. Maybe ACET shareholders will get a small percentage of the restructured company. But this would be worth less than the $81 million market cap that ACET has right now. Look for an opportunity to short the stock to under $2, then re-evaluate from there.

Disclosure: We are short Aceto.

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, 9 April 2018

Weed-Related Stocks Moving Up Despite Cannabis Industry Headwinds

In our report "Closed Off WEED Short; Buying More Of A Cannabis Related Play Close To Turning A Profit", we disclosed that we closed off a short on Canopy Growth Corporation (TWMJF) (WEED.TO) in the mid-$20's from around $33. However, we think that WEED and cannabis stocks in general will continue to have a weak April. We saw more of that on Monday as WEED dropped 7% in Canada to close at $25.74, below the price we closed our short position. We will look at going back long on Canopy if it hits $22 or by the end of April, whatever happens first. Some people have vehemently disagreed with our suggestion that weed stocks are tanking because people who made a lot of money on realized capital gains in the sector in 2017 have a huge tax bill and may be forced to sell stocks now to pay that off. That is their choice to disagree with it if they want to ride out the volatility while traders profit on both long and short positions. If you are bullish on cannabis, we think that now is the time to invest in cannabis-related stocks that offer good value proposition and the potential for news related to partnerships instead.

We have seen our strategy work quite well so far. Despite the drop in the weed sector, our two top cannabis-related picks, Pascal Biosciences Inc. (BIMUF) (PAS.CN) and Snipp Interactive Inc. (SNIPF) (SPN.CN) have remained robust and did particularly well on Monday. PAS increased 30% to $0.69 in Canada, which is the highest close we have seen since we highlighted the stock on February 28 in our report "Pascal Biosciences: The Cannabis Immunotherapy for Cancer?". SPN moved up 7% to $0.155 and has remained steady since we first chose it in "Snipp: The Next Weed-Related Stock To Skyrocket" on March 21. In addition to these two stocks, we are also looking at a turnaround in the cryptocurrency industry with a stock that currently has only a 2.6x P/E ratio. More on that later. We are up to 576 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 handle @StockTradePicks.

Why did Pascal move so much today? There appears to be increased speculation that the company will announce a partner to help develop its novel cancer immunotherapy. We agree with this type of speculation as it will be necessary for Pascal to recruit someone with deep pockets if it is to develop a drug to market (which will take a few years and over $100 million to do). In our report "Pascal Biosciences: The British Connection" we found it unusual for  Regents Park Securities, a British firm to take such an interest in a Canadian company. So let the speculation run rampant. We think that PAS is a $2 stock. But now that it has increased to $0.69 from our recommendation at around $0.40, we suggest to readers to consider taking some profits over the next few days while letting the rest of their shares ride. No matter how bullish we are on a stock, it's never a bad idea to lock in a bit of profits when you have them on speculative stocks.

Snipp is a bit different. While we are merely speculating on Pascal that a partnership is coming, on SPN there is no such ambiguity. We know that Snipp has and will continue to get partners, because the CEO is telling us so. Snipp has already announced a deal with WeedMD, or should we say that WeedMD announced a deal with Snipp, and we strongly believe that more deals with bigger cannabis producers are forthcoming. This is what the CEO had to say in the fourth quarter conference call held last week:

"Before getting into the numbers, I want to highlight our experience in our newest market segment, the cannabis market, which we officially launched just three weeks ago on March 13th, 2018 with the announcement of our Cannabis Marketing Resource Center. The CMRC, as we call it, is an educational tool for what will certainly be one of the fastest growing markets in North America. Our purpose was fairly simple – to create an educational resource for companies in this new and exciting field and to introduce those companies to the advantages of using our platform in their highly-regulated industry.

Snipp has a multi-year history with many of the largest companies in established regulated industries, particularly major consumer categories such as alcohol, pharmaceuticals and tobacco. Every industry is slightly different, but the basic tenets are the same – enable more effective marketing and/or loyalty programs that drive sales and grow a brand’s base of repeat customers within the parameters of what is legally permissible for each such industry.

The $250,000 investment in Snipp by WeedMD, coming just a week after we announced our resource center, was an affirmation by a key player in the Canadian market. WeedMD was quick to see that Snipp can help move this industry forward with the kind of professional tools that will be needed as this industry grows and develops its systems, regulations, and infrastructure – virtually from scratch. In particular, Snipp’s advanced and highly customizable proprietary platform allows companies like WeedMD the much needed flexibility to tailor promotional and loyalty programs in what is clearly a sector with rapidly changing and evolving legal parameters and guidelines.

We are very encouraged by the level and depth of interest, so investors should expect future announcements as our interaction with members of the resource center transition from dialogue and education into customer relationships. In fact right after this call I am hopping on a flight up to Canada to meet with a leading vertically integrated Cannabis player to talk about a twelve month contract so wish me luck!"

There will be more contracts announced here. Out of the many publicly listed weed stocks in Canada and many more private companies, it is ludicrous to think that Snipp won't procure at least several contracts based off of the Cannabis Marketing Resource Center. It could become one of those situations where the company constantly feeds the market with good news and the stock price reacts with a sustained rise up, catching many burnt shorts in the process.

In addition to the potential of news related to the weed market pushing SPN up on hype, the company itself is undervalued, according to the words of the CEO on the call:

"Clearly, industry statistics show how much room is in front of us in terms of unlocking shareholder value, simply by reaching industry averages. To put this in perspective, if you look at numbers from industry sources early in 2018, you find that Snipp is trading at a deep discount to the market and all of the technology industry groups. For example, as of January 2018, the average price to sales for the entire market was about 2.1 and the technology sectors where Snipp fits best trade at 6.4X to 7.9X sales. As of yesterday, our price to sales ratio was a modest 1.4X current sales barely above cyclical industries such as trucking. We sometimes wrongly get lumped with internet advertising companies, a group that has struggled in recent quarters, but that designation is wrong – because we provide the tools, not the creative content for marketing."

We think that SPN can hit $0.50 in the near-term. The stock will be pushed there on hype from the cannabis industry and speculation over what company SPN will recruit next. The stock price will stay at its new level on fundamental valuation and continued improvement of SPN's financials.

Have cryptocurrency and blockchain stocks bottomed out?

While cannabis stocks have remained reasonably strong despite the drop in the overall market on both sides of the border, the same cannot be said of blockchain and cryptocurrency stocks which have tanked quite a lot. This has resulted in some very cheap stocks that still have a ton of speculative upside, especially once blockchain gets hot again. For instance, this one stock with $0.05 EPS has a P/E ratio of just 2.6x:


We are holding off on an official report until more due diligence but if you want a sneak peak, follow our Stockhouse profile NNR1000 as we have talked about this stock on there before.

Disclosure: We are long stocks listed in this report.

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, 4 April 2018

Closed Off WEED Short; Buying More Of A Cannabis Related Play Close To Turning A Profit

Last week in our article "Sell WEED, for The Tax Man Cometh", we laid out our reason for going short on Canopy Growth Corporation (TWMJF) (WEED.TO) around $33 in Canada after having a very successful run going long on it in February (see our article "Buy WEED When There Is Blood On The Streets") along with other weed stocks over the last several months. We are up to 543 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.

This WEED short got to our target faster than expected and we have closed this trade in the mid-$20's. Having made money both on the long and short side on Canopy, we are looking for another long opportunity again. We think that Canopy and weed stocks in general will not do too well for the rest of April, so we are looking for a long position in two to four weeks or if Canopy hits $22 in Canada, whichever happens first. We think that there will still be selling pressure until the end of April when tax season ends. Anyone who sold weed stocks profitably in 2017 in non-registered accounts will have a large tax bill that needs to be paid over the next couple of weeks and those people may be forced to sell stocks to fund that tax bill if they don't readily have the cash available.

We are also looking closely at reloading on Isodiol International (ISOLF) (ISOL.CN) which we picked last July in our articles Isodiol: 10x Undervalued Cannabis Stock Inks Deals With Canopy and Isodiol: A Profitable Cannabis Company and Newstrike Resources Ltd. Warrants (HIP.WT.CN) which we first picked in our article "Cannabis is on the Rise Again" a couple of weeks ago. We recommend that anyone looking for weed stocks to have a look at those two positions as well as Canopy, but be patient. Put in low-ball bids but there is no sense in chasing them right now.

While weed stocks might be dead money for the next couple of weeks, there is one weed-related stock that has been undergoing significant improvements to its business but has gotten lost in the shuffle as the weed industry and the markets at large have been very shaky. That is Snipp Interactive Inc. (SNIPF) (SPN.CN). We first talked about the stock in our article "Snipp: The Next Weed-Related Stock To Skyrocket" with four reasons why we were so bullish on it:
  • A brilliant business plan to market cannabis that we believe has been overlooked by the investment community and the advertising industry. Snipp has the expertise in related regulated industries and has already attracted several companies after just releasing its platform. 
  • A strategic investment made by WeedMD, which has already signed up as a paying client.
  • Vastly improved financial performance of its existing operations. 
  • A very reasonable valuation and market cap of around $30 million. 
  • We will add a fifth reason onto this list. In a conference call yesterday, Snipp's CEO Atul Sabharwal disclosed that the company is in talks with another LP for a revenue-generating contract. Depending on what company that is, a news release disclosing an official deal should drive a significant increase in the stock price, regardless of how hot or cold the weed industry is at that time. 
We believe that all of these factors will be conducive to a huge run once the market becomes familiar with the story. Snipp has been up upon announcing the Launch of the Cannabis Marketing Resource Center with the likes of Aphria and WeedMD already having become members:

 "TORONTO, March 20, 2018 (GLOBE NEWSWIRE) -- Snipp Interactive Inc. ("Snipp" or the “Company”) (OTCQB:SNIPF) (TSX-V:SPN), a global provider of digital marketing promotions, rebates and loyalty solutions, today announced that it has received broad interest from a variety of Cannabis companies from across the spectrum of the industry including industry leaders like Aphria Inc., WeedMD Inc. and others. Over ten companies have signed up for the center since the launch just last week.  

The Company recently launched the Cannabis Resource Marketing Centre (“CMRC”), which brings together all of the accumulated knowledge that Snipp has acquired in designing and launching marketing programs in regulated industries, namely:

Alcohol – Beer, Wine, Spirits
Pharmaceuticals – Over the Counter (OTC) and Prescription Drugs
Tobacco – Cigars, Cigarettes, Tobacco
Arms & Ammunition – Small Arms, Guns, Bullets
3-Tier Tax Systems – Manufacturer to Distributor to Retailer
The goal of the CMRC is to help Cannabis marketers hit the ground running and take advantage of the deep expertise and flexible technology platforms engineered by Snipp for these regulated industries, thereby enabling cannabis-related companies to easily launch sophisticated solutions that are legally-compliant.  To sign up and qualify, the company has made available a simple application process that can be accessed at www.snipp.com/CMRC.

“We are extremely excited to see so many quality companies like Aphria Inc. sign up to our CMRC and learn from the tactics that their counterparts in the Alcohol, Tobacco and Pharma companies have used for decades to drive awareness, trial, market share and retention. To succeed in what is going to be a highly competitive future, it is vital for companies in the Cannabis space to adopt and build on these best practices and not re-invent the wheel”, said Atul Sabharwal, CEO of Snipp. “Given our rich history in and knowledge acquired supporting multiple leading companies in historically regulated industries like Alcohol and Pharma, I am sure companies signing up for the CMRC will see immediate value in their membership and begin exploring deeper relationships with Snipp to enable their marketing objectives. Today we service multiple leaders including many Fortune 500 brands in Alcohol, Tobacco and Pharma because of our secure, flexible and scalable technology platform that enables a multitude of program types, to solve a diverse set of problems for these clients. We welcome qualified companies to join and explore our resource center and engage with us in a deeper conversation to help drive their business objectives.”

We think that this is a brilliant business plan set up by Snipp and that it has the expertise needed in regulated industries like alcohol and tobacco as well as pharmaceuticals to help set up marketing programs for the growers and distributors of medical or recreational cannabis. Whatever Snipp is offering, it is enticing enough to have had over ten companies sign up in a week. We expect that to grow and for Snipp to take every opportunity to announce a big company signing up for the program like it already has with Aphria. If you are a bull in the cannabis industry, there is no question that you should take a look into Snipp as well. There are many LPs out there, but only a handful of agencies that can set up appropriate marketing campaigns for them. The industry will need both. We expect this process to be relatively turnkey as well. A template that will work for one grower or distributor will work quite well for all of them.

WeedMD announced a strategic investment in Snipp in late March:


"TORONTO, March 21, 2018 (GLOBE NEWSWIRE) -- WeedMD Inc. (TSX-V:WMD) (OTC:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical cannabis, is pleased to announce that it has made a strategic investment in Snipp Interactive Inc. (TSX-V:SPN) (“Snipp”), a global loyalty and promotions company focused on disruptive engagement platforms for consumers. The companies have also entered into an agreement whereby WeedMD will appoint Snipp as its technology vendor of record to design and deploy custom marketing solutions for direct sales, retail sales, referral/sourcing programs, distributor programs and other programs.

“As we move into new markets, it’s important to provide informed and engaging online experiences to consumers. By utilizing Snipp’s proprietary solutions to develop and implement new marketing and sales programs, we plan to deepen our relationship with current and future customers,” said Bruce Dawson-Scully, CEO of WeedMD. “We are excited to roll out these campaigns to expand market awareness, enhance communication touch points, and further engage our consumers.”

WeedMD is also proud to announce its participation in Snipp’s recently launched Cannabis Resource Marketing Centre (“CMRC”), which brings together all of the accumulated knowledge Snipp has acquired in designing and launching marketing programs in regulated industries, including alcohol, pharmaceuticals and tobacco. The goal of the CMRC is to help cannabis marketers hit the ground running and take advantage of the deep expertise and flexible technology platforms engineered by Snipp for regulated industries. See www.snipp.com/CMRC for more detail.

“We are looking forward to working with the team at WeedMD as we provide strategic support and launch our industry-leading, technology-based solutions to advance and accelerate their marketing and sales programs,” said Atul Sabharwal, CEO of Snipp. “Snipp is committed to positioning WeedMD as not only a market leader, but as a pioneer in leveraging emerging technologies as they build their business to drive engagement and loyalty. Our focus will initially be to help raise market awareness along with acquisition and retention of medical patients, and eventually for retailers as the adult use market emerges.”

Under the terms of the strategic partnership, WeedMD will invest $250,000 into Snipp on the same terms and condition as their recently announced financing at $0.10 per share. As part of the agreement, WeedMD, will have the right to nominate one member to the Snipp advisory board."

The first thing that we would like to point out is that WeedMD, a $135 million market cap LP, thought that this deal was important enough to announce it on its own news feed. Usually it's the smaller company that likes to announce a deal with a larger name to get some exposure, but both companies released a statement on this agreement.

Second, we would like to point out this wording in the news release: "The companies have also entered into an agreement whereby WeedMD will appoint Snipp as its technology vendor of record to design and deploy custom marketing solutions for direct sales, retail sales, referral/sourcing programs, distributor programs and other programs." Signing up for CMRC is free - any eligible applicant can do that. But what this shows is that WeedMD has already become a paying customer, referring to Snipp as its technology vendor. CMRC has already started generating revenue for Snipp.

This revenue will be on top of Snipp's vastly improved financials. Take a look at the Q4 2017 financials released yesterday:

  • Revenue for Q4 2017 increased by 29% compared to Q4 2016. Revenue for Q4 2017 was $3.84MM compared to revenue for Q4 2016 of $2.99MM.
  • Revenue for Fiscal 2017 increased by 15% compared to Fiscal 2016. Revenue for Fiscal 2017 was $12.88MM compared to revenue for Fiscal 2016 of $11.22MM.
  • EBITDA in Q4 2017 improved by 83% compared to Q4 2016, an EBITDA improvement of $1,080,597. Q4 2017 EBITDA loss was $0.22M vs Q4 2016 EBITDA loss of $1.30MM.
  • EBITDA in Fiscal 2017 improved by 70% compared to Fiscal 2016, an EBITDA improvement of $4,551,329. Fiscal 2017 EBITDA loss was $1.92M vs Fiscal 2016 EBITDA loss of $6.47MM.
  • Bookings for Q4 2017 improved by 45% compared to Q4 2016, an improvement of $1,266,293. Q4 2017 Bookings were $4.07MM vs Q4 2016 Bookings of $2.80MM
  • Bookings Backlog (programs that have been sold, but whose revenues have not yet been recognized) stood at $5.7MM at December 31, 2017, an increase of 35% compared to Bookings Backlog at December 31, 2016 of $4.2MM.
  • Gross margins improved in Q4 2017 by 5% from 61% in Q4 2016 to 66% in Q4 2017.
  • Gross margins improved in Fiscal 2017 by 4% from 66% in Fiscal 2016 to 70% in Fiscal 2017.


Revenue increased, EBITDA vastly improved to the point where consistent profitability is in sight (Q3 was EBITDA positive) and backlog has grown, indicative of more revenue growth to come. At the start of 2018, the company announced that "Snipp Crosses US$4MM of Bookings in Q4 2017, Largest Quarter of Sales in 2017 With 150+% Growth Compared to Q4 2016". In addition to disclosing the meeting with a well known cannabis company, the CEO's tone on the call was focused on getting to profitability with a reasonable path to get there. We think that it can happen this year.

With a market cap of around $30 million Canadian and a revenue run-rate that is close $4 million U.S. per quarter and growing, the revenue multiple on Snipp is only around 2. Compared to cannabis companies this is extremely cheap. Snipp provides a unique way for investors to have exposure to the weed industry without having to pay for the high multiples. We have gotten in early before the hype really makes this stock take off and suggest that readers take a look into Snipp while it's cheap. We can't tell you when to sell, but we believe that early buyers will have plenty of opportunities to sell at big profits in the near future.

Disclosure: We are long Snipp.

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, 27 March 2018

Sell WEED, for The Tax Man Cometh

In early February starting with our article "Buy WEED When There Is Blood On The Streets", we repeatedly called Canopy Growth Corporation (TWMJF) (WEED.TO) a strong buy with a prediction of a bounce into the $30's from under $25 in Canada. A month later in our article "Cannabis is on the Rise Again" we announced that we closed the position in favor of more lucrative trading opportunities in the cannabis sector. We are now recommending a sell on WEED. While this might not be a popular opinion, understand that this is not a knock against the company, but the situation it is in.We are up to 528 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history so understand that we are not giving this sell alert without good reason. If you like our picks you can also follow our blog by clicking the follow button on the top of the left hand panel.

So what is this reason? Simple. Just like we have all heard that there is tax loss selling in November and December, putting additional selling pressure on losers for the year so that people can collect a tax benefit, there is tax GAIN selling that occurs in April as people must pay taxes on the gains they made in stocks they sold the prior year. When you buy and sell securities, taxes are not taken off the top like they would with employment income. That bill comes in one lump sum and could be a very hefty cash outflow for an investor if they had a good year. The cannabis industry in general and WEED in particular had a good year last year, more than tripling from less than $10 to $30 in Canada. WEED would also be a stock that many first time investors would have gotten into as a trial for investing in cannabis. These people might be less versed in how to manage tax strategies like not day trading too much on winning positions and not waiting to sell big gainers until January to delay the tax bill for the subsequent year.

A good litmus test for being able to tell if our theory is accurate or not is to analyze your personal situation. Did you take a big taxable gain last year? Do you have a big tax bill to pay off in April? Do you have to sell some stocks in order to pay off that tax bill? If this is the case, multiply your situation by the thousands of people who have made money off of WEED and cannabis stocks and now you can imagine the problem. Even if you have managed your cash flow and tax strategies so that you personally can absorb the tax bill without selling too much stock doesn't mean that others have done the same.

We predict that April will be a bad month for WEED. The senate vote on legalized marijuana was a sell on news type of event as there won't be any positive short term catalysts again until June with the tax gain selling and shaky markets over trade and interest rates being negative catalysts right now. We think that WEED will hit the mid-$20's again during the first half of April before recovering to back over $30 on bullish speculation in the weeks leading up to the legalization bill passing in Canada.

Again, this is not meant to be a specific knock against the company, but we think that opportunistic traders will take advantage of this trend like we have. If you can tolerate the volatility there is nothing wrong with holding, but we are confident that you will be able to buy back WEED at a substantially lower price than $33 in two or three weeks from now.

Disclosure: We are short Canopy.

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, 21 March 2018

Snipp: The Next Weed-Related Stock To Skyrocket

We have gone on an incredible winning streak with cannabis stocks in Canada:
  • In July, we picked Isodiol International (ISOLF) (ISOL.CN) in our articles Isodiol: 10x Undervalued Cannabis Stock Inks Deals With Canopy and Isodiol: A Profitable Cannabis Company. ISOL moved up nearly ten times since then, hitting a high of $2.14 in Canada from $0.23 and sits at $1.23 today. 
  • In November we picked Global Cannabis Applications, or GCAC, (FUAPF) (APP.CN) in our article A Cannabis and Blockchain Story when FUAPF was sitting at $0.09. GCAC moved up more than eight times in a couple of months with the U.S. symbol hitting a high of $0.77 and sits at $0.22 now.
  • In early February we told people to "Buy WEED When There Is Blood On The Streets", buying Canopy Growth Corporation (TWMJF) (WEED.TO) near the bottom and now it's back up over $33 in Canada.
  • We chose Pascal Biosciences Inc. (BIMUF) (PAS.CN) as one of our strongest buys yet in "Pascal Biosciences: The Cannabis Immunotherapy for Cancer?". We think that the market is greatly underestimating the impact of the company's recent discovery and think it could trade up to $2.00 in the not-too-distant future. The stock has done well this week with the CEO heavily participating in the recent secondary financing to the tune of 387,594 units or a $155,000 investment. Pascal has not yet announced a strategic partner, but we think this will happen and could be a positive catalyst in the near-term. 
  • In "Cannabis is on the Rise Again" we chose Newstrike Resources Ltd. Warrants (HIP.WT.CN) and that has finally taken off, trading over $0.20 in Canada. The stock has dropped back down to $1.19, so that has closed part of the value gap. We took a bit of profits to allocate more to Pascal and our next pick. 
Our streak of good luck and good trades in this hot sector has garnered us some attention and we expect that to continue with our latest pick. We noticed that we are getting thousands of hits from cannabis-related message boards and Facebook investor groups. We are up to 510 followers. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

Snipp Interactive Inc. (SNIPF) (SPN.CN) broke through a new 52-week high on Wednesday and ended the day at $0.15, up 20% in Canada. While the stock has already gone up 50% in two days, we think that it has a lot more to go and is on the verge of skyrocketing. $0.50 in Canada in a short time frame is not out of the question as we have seen first hand how crazy hot these weed-related stocks can get.

Our excitement over Snipp can be divided into four parts:

  • A brilliant business plan to market cannabis that we believe has been overlooked by the investment community and the advertising industry. Snipp has the expertise in related regulated industries and has already attracted several companies after just releasing its platform. 
  • A strategic investment made by WeedMD, which has already signed up as a paying client.
  • Vastly improved financial performance of its existing operations. 
  • A very reasonable valuation and market cap of around $30 million 

We believe that all of these factors will be conducive to a huge run once the market becomes familiar with the story.

Snipp has been up upon announcing the Launch of the Cannabis Marketing Resource Center with the likes of Aphria and WeedMD already having become members:

 "TORONTO, March 20, 2018 (GLOBE NEWSWIRE) -- Snipp Interactive Inc. ("Snipp" or the “Company”) (OTCQB:SNIPF) (TSX-V:SPN), a global provider of digital marketing promotions, rebates and loyalty solutions, today announced that it has received broad interest from a variety of Cannabis companies from across the spectrum of the industry including industry leaders like Aphria Inc., WeedMD Inc. and others. Over ten companies have signed up for the center since the launch just last week.  

The Company recently launched the Cannabis Resource Marketing Centre (“CMRC”), which brings together all of the accumulated knowledge that Snipp has acquired in designing and launching marketing programs in regulated industries, namely:

Alcohol – Beer, Wine, Spirits
Pharmaceuticals – Over the Counter (OTC) and Prescription Drugs
Tobacco – Cigars, Cigarettes, Tobacco
Arms & Ammunition – Small Arms, Guns, Bullets
3-Tier Tax Systems – Manufacturer to Distributor to Retailer
The goal of the CMRC is to help Cannabis marketers hit the ground running and take advantage of the deep expertise and flexible technology platforms engineered by Snipp for these regulated industries, thereby enabling cannabis-related companies to easily launch sophisticated solutions that are legally-compliant.  To sign up and qualify, the company has made available a simple application process that can be accessed at www.snipp.com/CMRC.

“We are extremely excited to see so many quality companies like Aphria Inc. sign up to our CMRC and learn from the tactics that their counterparts in the Alcohol, Tobacco and Pharma companies have used for decades to drive awareness, trial, market share and retention. To succeed in what is going to be a highly competitive future, it is vital for companies in the Cannabis space to adopt and build on these best practices and not re-invent the wheel”, said Atul Sabharwal, CEO of Snipp. “Given our rich history in and knowledge acquired supporting multiple leading companies in historically regulated industries like Alcohol and Pharma, I am sure companies signing up for the CMRC will see immediate value in their membership and begin exploring deeper relationships with Snipp to enable their marketing objectives. Today we service multiple leaders including many Fortune 500 brands in Alcohol, Tobacco and Pharma because of our secure, flexible and scalable technology platform that enables a multitude of program types, to solve a diverse set of problems for these clients. We welcome qualified companies to join and explore our resource center and engage with us in a deeper conversation to help drive their business objectives.”

We think that this is a brilliant business plan set up by Snipp and that it has the expertise needed in regulated industries like alcohol and tobacco as well as pharmaceuticals to will help set up marketing programs for the growers and distributors of medical or recreational cannabis. Whatever Snipp is offering, it is enticing enough to have had over ten companies sign up in a week. We expect that to grow and for Snipp to take every opportunity to announce a big company signing up for the program like it already has with Aphria. If you are a bull in the cannabis industry, there is no question that you should take a look into Snipp as well. There are many LPs out there, but only a handful of agencies that can set up appropriate marketing campaigns for them. The industry will need both. We expect this process to be relatively turnkey as well. A template that will work for one grower or distributor will work quite well for all of them.

One thing that we expected for Pascal but hasn't happened yet is a strategic partnership. While Snipp performed strongly over the past couple of days, it really took off and became of interest to us when WeedMD announced a strategic investment in Snipp in early trading on Wednesday:


"TORONTO, March 21, 2018 (GLOBE NEWSWIRE) -- WeedMD Inc. (TSX-V:WMD) (OTC:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical cannabis, is pleased to announce that it has made a strategic investment in Snipp Interactive Inc. (TSX-V:SPN) (“Snipp”), a global loyalty and promotions company focused on disruptive engagement platforms for consumers. The companies have also entered into an agreement whereby WeedMD will appoint Snipp as its technology vendor of record to design and deploy custom marketing solutions for direct sales, retail sales, referral/sourcing programs, distributor programs and other programs.

“As we move into new markets, it’s important to provide informed and engaging online experiences to consumers. By utilizing Snipp’s proprietary solutions to develop and implement new marketing and sales programs, we plan to deepen our relationship with current and future customers,” said Bruce Dawson-Scully, CEO of WeedMD. “We are excited to roll out these campaigns to expand market awareness, enhance communication touch points, and further engage our consumers.”

WeedMD is also proud to announce its participation in Snipp’s recently launched Cannabis Resource Marketing Centre (“CMRC”), which brings together all of the accumulated knowledge Snipp has acquired in designing and launching marketing programs in regulated industries, including alcohol, pharmaceuticals and tobacco. The goal of the CMRC is to help cannabis marketers hit the ground running and take advantage of the deep expertise and flexible technology platforms engineered by Snipp for regulated industries. See www.snipp.com/CMRC for more detail.

“We are looking forward to working with the team at WeedMD as we provide strategic support and launch our industry-leading, technology-based solutions to advance and accelerate their marketing and sales programs,” said Atul Sabharwal, CEO of Snipp. “Snipp is committed to positioning WeedMD as not only a market leader, but as a pioneer in leveraging emerging technologies as they build their business to drive engagement and loyalty. Our focus will initially be to help raise market awareness along with acquisition and retention of medical patients, and eventually for retailers as the adult use market emerges.”

Under the terms of the strategic partnership, WeedMD will invest $250,000 into Snipp on the same terms and condition as their recently announced financing at $0.10 per share. As part of the agreement, WeedMD, will have the right to nominate one member to the Snipp advisory board."

The first thing that we would like to point out is that WeedMD, a $191 million market cap LP, thought that this deal was important enough to announce it on its own news feed. Usually it's the smaller company that likes to announce a deal with a larger name to get some exposure, but both companies released a statement on this agreement.

Second, we would like to point out this wording in the news release: "The companies have also entered into an agreement whereby WeedMD will appoint Snipp as its technology vendor of record to design and deploy custom marketing solutions for direct sales, retail sales, referral/sourcing programs, distributor programs and other programs." Signing up for CMRC is free - any eligible applicant can do that. But what this shows is that WeedMD has already become a paying customer, referring to Snipp as its technology vendor. CMRC has been around for a week and Snipp has already started generating revenue.

This revenue will be on top of Snipp's vastly improved financials. Take a look at the Q3 2017 financial release:


  • EBITDA turned positive in Q3 2017 and improved by 101% compared to Q3 2016, an EBITDA improvement of $1,191,708. Q3 2017 EBITDA was positive at $14.4k vs a Q3 2016 EBITDA loss of $1.2MM
  • Q3 2017 Net Income was US $-0.6MM, a 65% improvement from Q3 2016 Net Income of US $-1.8MM
  • Revenue for Q3 2017 was $3.7MM and for the nine months ended September 30, 2017 was $9.0MM compared to revenue for Q3 2016 of $3.3MM and for the nine months ended September 30, 2016 of $8.2MM.
  • Gross margins improved 8% from 61% in Q3 2016 to 69% in Q3 2017.
  • The Company continued to focus on cost improvements from its integration efforts, resulting in the following Q3 2017 cost savings compared to Q3 2016:
    • Salaries and compensation expenses decreased by approximately US $425k or 16%;
    • General and administrative expenses decreased by approximately US $90k or 26%;
    • Campaign infrastructure expenses decreased by approximately US $151k or 12%;
    • Professional fees decreased by approximately US $41k or 87%;
    • Marketing and investor relations expenses decreased by approximately US $33k or 69%;
    • Travel expenses decreased by approximately US $57k or 78%;
  • The following are cost savings recognized in the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016:
    • Salaries and compensation expenses decreased by approximately US $2.1MM or 23%;
    • General and administrative expenses decreased by approximately US $195k or 19%;
    • Campaign infrastructure expenses decreased by approximately US $122k or 5%;
    • Professional fees decreased by approximately US $82k or 30%;
    • Marketing and investor relations expenses decreased by approximately US $118k or 60%;
    • Travel expenses decreased by approximately US $228k or 81%;
  • The Company’s Bookings Backlog (programs that have been sold, but whose revenues have not yet been recognized) stood at $5.5MM at September 30, 2017, a 22% improvement from the same point last year. Bookings backlog at September 30, 2016 was $4.5MM.

Revenue increased, EBITDA turned slightly positive and backlog has grown, indicative of more revenue growth to come. At the start of 2018, the company announced that "Snipp Crosses US$4MM of Bookings in Q4 2017, Largest Quarter of Sales in 2017 With 150+% Growth Compared to Q4 2016".

With a market cap of around $30 million Canadian and a revenue run-rate that is $3-$4 million U.S. and growing, the revenue multiple on Snipp is only around 2. Compared to cannabis companies this is extremely cheap. Snipp will now have exposure to the weed industry and its investors but is trading at a very low multiple compared to them. This will undoubtedly be used to promote Snipp's value once the story gets out. We have gotten in early before the hype really makes this stock take off and suggest that readers take a look into Snipp too while it's cheap. We can't tell you when to sell, but we believe that early buyers will have plenty of opportunities to sell at big profits in the near future.

Disclosure: We are long stocks listed in this report.

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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



Snipp: The Next Weed-Related Stock To Skyrocket

We have gone on an incredible streak with cannabis stocks in Canada:


Our streak of good luck and good trades has brought us a lot of attention. We noticed that we are getting thousands of hits from cannabis-related message boards and Facebook investor groups. We are up to 502 followers now. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

Snipp Interactive Inc. (SNIPF) (SPN.CN) has broken through a new 52-week high and we think that this stock is on the verge of skyrocketing. $0.50 in Canada in a short time frame is not out of the question as we have seen first hand how crazy hot these weed-related stocks can get and the market cap is only around $30 million Canadian right now.

We think Snipp will go on a huge run because of the Launch of the Cannabis Marketing Resource Center with the likes of Aphria and WeedMD already having become members:


 "TORONTO, March 20, 2018 (GLOBE NEWSWIRE) -- Snipp Interactive Inc. ("Snipp" or the “Company”) (OTCQB:SNIPF) (TSX-V:SPN), a global provider of digital marketing promotions, rebates and loyalty solutions, today announced that it has received broad interest from a variety of Cannabis companies from across the spectrum of the industry including industry leaders like Aphria Inc., WeedMD Inc. and others. Over ten companies have signed up for the center since the launch just last week.  

The Company recently launched the Cannabis Resource Marketing Centre (“CMRC”), which brings together all of the accumulated knowledge that Snipp has acquired in designing and launching marketing programs in regulated industries, namely:

Alcohol – Beer, Wine, Spirits
Pharmaceuticals – Over the Counter (OTC) and Prescription Drugs
Tobacco – Cigars, Cigarettes, Tobacco
Arms & Ammunition – Small Arms, Guns, Bullets
3-Tier Tax Systems – Manufacturer to Distributor to Retailer
The goal of the CMRC is to help Cannabis marketers hit the ground running and take advantage of the deep expertise and flexible technology platforms engineered by Snipp for these regulated industries, thereby enabling cannabis-related companies to easily launch sophisticated solutions that are legally-compliant.  To sign up and qualify, the company has made available a simple application process that can be accessed at www.snipp.com/CMRC.

“We are extremely excited to see so many quality companies like Aphria Inc. sign up to our CMRC and learn from the tactics that their counterparts in the Alcohol, Tobacco and Pharma companies have used for decades to drive awareness, trial, market share and retention. To succeed in what is going to be a highly competitive future, it is vital for companies in the Cannabis space to adopt and build on these best practices and not re-invent the wheel”, said Atul Sabharwal, CEO of Snipp. “Given our rich history in and knowledge acquired supporting multiple leading companies in historically regulated industries like Alcohol and Pharma, I am sure companies signing up for the CMRC will see immediate value in their membership and begin exploring deeper relationships with Snipp to enable their marketing objectives. Today we service multiple leaders including many Fortune 500 brands in Alcohol, Tobacco and Pharma because of our secure, flexible and scalable technology platform that enables a multitude of program types, to solve a diverse set of problems for these clients. We welcome qualified companies to join and explore our resource center and engage with us in a deeper conversation to help drive their business objectives.”

The stock is gaining a lot of attention today, so we are releasing this preliminary report in order to get it out as quickly as possible. Stay tuned for follow up reports unless this stock really moves and us and our readers are already in big profits like we are with our other weed picks.

Disclosure: We are long stocks listed in this report.

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, 19 March 2018

Comparing Newstrike to Namaste Warrants

Since our article "Cannabis is on the Rise Again" and again with "Two Cheap Warrant Plays In Canada", we introduced our readers to Newstrike Resources Warrants (HIP.WT.CN) trading in Canada. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. We are up to 499 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 would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

Newstrike is a popular and volatile weed play with a 52-week high of $3.30 and low $0.265 on the Toronto Venture Exchange. HIP.WT was part of a bought deal financing that the company completed a couple of weeks ago. The strike price is at $1.75 and the warrants expire on February 16, 2020. The warrants have an acceleration clause where the company has the option to move up the expiry to as soon as 15 days after notice if the stock price trades above $2.60 for ten consecutive days. This is not really much of a worry at this point, because if the stock does reach that high, the warrants will be intrinsically worth $0.85 and everyone buying now will be very happy.

The warrants finally moved up a bit today, closing at $0.165 even though the stock stayed flat at $1.27. We have explained the advantages of buying the warrants already, but we think the value proposition is most clearly laid out when comparing the Newstrike Resources Warrants to Namaste Technologies (N.CN) and its warrants (N.WT.CN). N.WT came out 11 days after HIP.WT and also have a two year expiry date. The Namaste warrants have an exercise price of $3.15 and an acceleration clause similar to the HIP warrants except at $6.00. Namaste has had a $4.40 52-week high and a $0.175 52-week low trading in Canada. It closed Monday at $2.31 with a $628 million market cap. At $1.27, HIP has a $613 million market cap.

So the HIP.WT and N.WT are very similar in terms of having out-of-the-money strike prices, acceleration clauses and they have expiry dates within two weeks of each other. Namaste and Newstrike are in similar industries with similar volatility on the stocks and are very close in market cap. That makes N.WT a near perfect comparable to HIP.WT. N.WT closed at $0.49 and HIP.WT closed at $0.165, so how does their relative values compare at these prices?

Here is an options calculator chart from CBOE, first with HIP.WT parameters and then N.WT parameters:




With the price of HIP at $1.27, strike price of the warrants at $1.75 and days to expiration of 698, HIP.WT's value is $0.5641 assuming a 100% volatility. With the price of N at $2.31, strike price of the warrants at $3.15 and days to expiration of 709, N.WT's value is $1.0413 assuming a 100% volatility. Now both warrants are undervalued assuming a 100% volatility and we have discussed in previous articles why we think 100% volatility is a reasonable assumption. But even if you don't think that, HIP.WT is undeniably undervalued when compared to N.WT. At $0.165, HIP.WT implies a volatility of 40.92% on HIP. At $0.49, N.WT implies a volatility of 54.84% on N. This is the valuation for HIP.WT when using the same volatility implied on Namaste based on the price of the warrants:


This CBOE chart shows that at a volatility of 54.84%, HIP.WT is worth $0.262, 59% higher than where the warrants trade today. Considering the hot weed industry, the terms of the warrants and how cheap they are compared to similar securities like N.WT and long-dated WEED call options, HIP.WT is a steal. If you are bullish on HIP specifically and the weed industry in general, these warrants are definitely something to take a look at.

Disclosure: We are long stocks listed in this report.

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