Organigram ( OGI:V) – Why You Should be Looking at Them Now.
Chris Parry has become one of the forefront speakers on the Medical Marijuana space in Canada, covering many of the rise and falls of this space. Recently through his MMPRInvestments, They released a free report covering Organigram (OGI:V).
Chris points out probably the most important aspect when considering which company to get involved with – Organigram’s deal with the Trauma Healing Centers. In the Canadian MM industry, they are the only company currently with a deal that will cater to individuals who have government backed health insurance. This coupled with its organic certification, easy scale capacity and bilingual nature ( Quebec monopoly in the making..?), makes OGI one of the top MM producers. And don’t forget, MM has show great promise for victims of PTSD.
Let that sink in for a second, then go read the full report here
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The MMPR Investments Report: Organigram (OGI:V)
The medical marijuana space in Canada has been crazy for the last year.
From the sudden emergence of a corporate medicinal cannabis supply system to court cases allowing formerly registered users to continue growing their own product, to the crazy profligation of unregulated dispensaries in Vancouver while other cities shut them down as soon as they appear, the mining-to-marijuana rush, the crazy share price spikes and crashes, the suited brokers shoving through barbed wire fences to do deals with motorcycle club employees, the boardrooms with baggies of samples being passed around… nobody could have foreseen the madness.
But out of madness, eventually, comes sanity. And the Canadian weedspace right now is verging on the sane.
Gone are many of the early share price rockets. Companies like Green and Hill, and Growlife, and Enertopia, and Creative Edge Nutrition, which had market caps as high as when they launched, now scrape bottom. The ticker symbol plays like BUD and THC are nowhere to be seen. And investors that, formerly, played all day, bouncing their cash from play to play depending on what was being promoted, are now butthurt, poorer, and looking for where to go next.
That’s the bottom end.
At the top, some serious wheels are turning. I’ve looked deep into the soul of many of these companies and I like what I see. Canadian medical marijuana is a mess of bureaucratic regulations, to be sure, but that torturous process has effectively allowed the market to be filtered through a sieve that has left only the high quality, the well-funded, the professionally run and the well supported companies standing.
Companies like Bedrocan, the Canadian subsidiary of a Dutch parent that has the monopoly on European medical marijuana and has earned $1m in revenue just reselling imported product from its parent. And Tweed, which two licensed facilities and a big war chest, the first mover in the market that stands tall on its effective marketing campaign and US investor base penetration. And Mettrum, a new player that keeps it cards close to its chest while it quietly connects registered patients to its product. And Supreme, which is marching towards its license with a plan to grow medical marijuana in a massive Ontario based facility, and sell it on the cheap to feed the low end of the market.
These are all fine companies. There are others, earlier in their licensing process, that may add to the roster. But there’s one that, right now, to me, has demonstrated it stands tall.
That company is Organigram.
You’ll find it in the Canadian markets under the ticker V.OGI. In the US, it’s OGRMF.
Why do I like this company? How much do I like this company?
Let’s get into that.
Organigram is not selling more weed than anyone else. It’s not got more name recognition than anyone else. It’s not sitting on a billion square feet of growing space. But it has something REALLY important in Canada, and North America proper.
It has a deal.
That deal is with Trauma Healing Centres (or THC), a group that is opening a series of clinics across Canada aimed at treating people with post-traumatic stress disorder. That means, largely, military veterans and first responders.
The deal promises to bring Organigram as much as $22m over the first two years, and to expand outward from that. But while that’s nice, it’s not the most important thing.
The deal also promises to give Organigram a bankable off-take arrangement upon which it can plan ahead. Instead of fighting for every patient, the THC group will bring the patients to them. But that’s not the most important thing.
The deal will embrace Organigram’s certified organic product (something no other company has), and will take advantage of the company’s truly bilingual structure (something, again, no other company has, and which gifts the company Quebec as a virtual monopoly).But, again, not the most important thing.
The important thing is veterans in Canada have government-backed health insurance, and medical marijuana is an accepted treatment for PTSD.
This means Organigram has a deal that, as a first in North America, will be insurance-backed, to serve a large segment of the population exclusively.
Anxiety disorders, or which PTSD is one of the largest segments, cost the US health system $42.3 billion annually, according to the Sidran Institute. Around half of that is spent on drugs, and those drugs are significantly more expensive – and less effective – and have more side effects – than medicinal cannabis.
Currently, Health Canada puts the potential market for medical marijuana at $1.3b per year in 2022. So if Organigram can be the go-to place for Canadian veterans and first responders to turn to for their PTSD relief, the market radically dwarfs the expected registered medical marijuana user for all other ailments.
This won’t happen tomorrow. It won’t happen next month. But when it happens, when the healing centres open and the veterans groups, which are behind THC, start moving their brothers into that system, Organigram won’t have time to scratch itself for all the business it’ll be handling.
And that’s why the company, right now, is working feverishly to expand. All the money it has raised in previous months, all of it is going to expansion of its present facility – something it can do because it just purchased the building next door and worked with the municipality to merge the two properties into one address. No need for a new MMPR!
I own Organigram stock. I’m not selling. I’m going to have to make that disclosure every time I write about this company for a long time to come because I have no plans to cash in my stake. I’m waiting for dividends, and I’m very happy in my belief dividends will one day flow hard.
There are several great investment options in medical marijuana in Canada. You should seriously consider them and invest where you think your money will be safest and most productive.
For me, that’s Organigram. V.OGI. Get in.
Written by: Chris Parry
NOTE: The author of this report has been paid for its production and dissemination and owns Organigram stock. Please do your own due diligence before making any investment and speak to a licensed professional for investment advice.
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92 Resources(NTY:V) Advancing in Uranium
The Uranium Industry has recently seen more exposure in the last weeks. The Basin is home to some the highest grade uranium in the world, as well as McArthur River, the largest producing mine. Coming in second in global supply, Canada was surpassed by Kazakhstan in 2009. With the end of the Megaton to Megawatt program, and increased global pressure to use clean energy, many countries have turned to uranium. This coupled with energy security concerns and greenhouse constraints on coal, has continue to keep uranium in the limelight.
Brad Wall, Premier of Saskatchewan, was on official trade business November 17-23 in India. In this time agriculture, clean coal technologies and uranium were discussed. On uranium, Mr. Wall said “We are looking for uranium exports to India and have held preliminary discussions with officials of the Atomic Energy Commission and hope to conclude an early agreement.”
One such early play, 92 Resources (NTY:V), a junior exploration company with claims in the basin, released some management discussion on their Mitchell Lake property today. The 2354 hectare claim is on the eastern edge of the Athabasca Basin, adjoining to the south, Cameco’s Mitchell Lake Zone and 2.2km to the south, UEX’s West Bear Deposit. Significant exploration projects in the immediate area include UEX’s Hidden Bay Project, Fission’s Minor Bay Project, Pitchstone’s Martin, as well as Projects controlled by Denison Mines and JNR Resources. NTY intends to complete a ground survey in the near term to further define diamond drill targets. This program is subject to financing.
Stimulating the Uranium Industry: New Catalysts?
Uranium plunged by US$6 a pound (or 13.6{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) over the past week to US$38. Last week it was breaking highs with 44$, up over 25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} from last year, but were unable to keep the new levels.. With 2 Fukushima reactors set to restart in 2015, the uranium sector has seen renewed interest in recent months. The spot uranium market is relatively small, so massive price jumps are normal. Today is to be noted though – this second largest week to week drop since ’96.
“Recent positive uranium spot price movements have failed to reverse the negative trend in the equities and, in the near term, equities will respond to macro news, such as in Japan where 19 of 26 assembly members recently voted in favor of nuclear reactor restarts.” Colin Healy, The Gold Report
Analysts predict that this may be the beginning of a long upward streak for the price of the commodity, however this may be sentiment driven. Most Uranium equities though have been affected with the TSX down more then 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} since August.
“We have heard from several sources that the recent price rally has been driven more by transient supply tightness and that over the medium term, the market remains well supplied,” Greg Barnes, Financial Post
With China committing to capping its carbon emissions by 2030, it plans for 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to be covered by renewable sources. The numbers that don’t seem real? 1,000 nuclear reactors, 500,000 wind turbines or 50,000 solar farms are required to cover this. Currently China has 23 reactors with 26 more being built – this shows that China still has much to do to met this commitment.
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Canadian Securities Exchange to Bring Nasdaq’s Corporate Solutions to Issuers
Canadian Securities Exchange to Bring Nasdaq’s Corporate Solutions to Issuers
NEW YORK and TORONTO, Nov. 20, 2014 (GLOBE NEWSWIRE) — Nasdaq (Nasdaq:NDAQ) today announced a new partnership with the Canadian Securities Exchange (CSE) in Toronto, to further its commitment to providing value-add Corporate Solutions offerings for listed companies in Canada. The strategic partnership will offer CSE’s issuers the full suite of Nasdaq’s market-leading Corporate Solutions products including investor services and targeting, public relations and governance solutions.
“Our solutions are built to empower companies to better inform and manage relationships with their investors, their boards and the general public,” said Paul McKeown, Senior Vice President, Corporate Solutions, Nasdaq. “This new partnership with CSE will bring our solutions and services to many new public companies listed with CSE, and expand our already significant presence in the Canadian market.”
CSE issuers will now have potential access to the Corporate Solutions suite of products including the Investor Relations desktop and mobile platforms, Advisory Services, Directors Desk and the GlobeNewswire press release distribution service. In addition to this new agreement, CSE has been a market technology customer of Nasdaq for over 10 years, operating on the X-stream trading platform.
“We are proud to be offering our listed companies some of the finest corporate services and solutions on the market through this new relationship with Nasdaq,” said Robert Cook, Senior Vice President, Market Development, Canadian Securities Exchange. “The CSE cannot emphasize enough the importance of communicating seamlessly and frequently with your key stakeholders while practicing good governance. We feel these offerings will strengthen our issuers and help them achieve their business goals.”
Nasdaq’s technology solutions are used by over 10,000 customers in 60 countries, consisting of public and private entities, exchanges, regulators and broker-dealers, and power over 100 marketplaces worldwide.
About The Canadian Securities Exchange (CSE):
The Canadian Securities Exchange is the only exchange providing trading and market information services for all securities listed in Canada. Recognized as an exchange by the Ontario Securities Commission in 2004, the CSE is designed to facilitate the capital formation process for public companies through a streamlined approach to company regulation that emphasizes disclosure and the provision of efficient secondary market trading services for investors. The exchange is home to more than 250 issues covering a broad range of industry sectors.
For more information please visit www.thecse.com and our blog at http://blog.thecse.com/.
About Nasdaq:
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets. As the creator of the world’s first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world’s securities transactions. Nasdaq is home to more than 3,500 listed companies with a market value of over $8.8 trillion and more than 10,000 corporate clients. To learn more, visit www.nasdaq.com/ambition or http://business.nasdaq.com/.
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Cannabis and Alzheimer’s: Use Linked to Greater Connectivirty in the Brain
Cannabis Sativa. A annual herbaceous plant, it is a plant that has been used for centuries. First classified by Carl Linnaeus, cannabis has a long recorded history of use including relgious and spiritual purposes, medicine, recreation, industrial fibre, food, and seed oil.
It first became heavily demonized in the early 1900’s, and totted to have no medicinal value for decades. In recent years, research in cannabis sativa has begun to show a new story. A recent study by the University of Texas suggests that chronic use may be linked with greater connectivity in the brain. This may have great impact for those suffering from Alzheimer’s.
“What’s unique about this work is that it combines three different MRI techniques to evaluate different brain characteristics,” said Dr. Sina Aslan, founder and president of Advance MRI, LLC and adjunct assistant professor at The University of Texas at Dallas. “The results suggest increases in connectivity, both structural and functional that may be compensating for gray matter losses. Eventually, however, the structural connectivity or ‘wiring’ of the brain starts degrading with prolonged marijuana use.”
It is important to note that size and density of grey matter in the brain does not correlate to to lower intelligence or slower decision making processes – one can have a smaller brain and have a higher IQ.
Why is this important to the everyday investor looking at this industry? Cannabis Sativa is currently a schedule I drug, a class reserved for dangerous drugs with no medicinal value. It is research like this that allows legislators and policy makers to make informed descions.
If the status were to change, this would allow for greater access by the public and private sectors for a variety of purposes. Currently with heavily controlled legislation Health Canada expects this industry to grow over $1 billion in the first 5 years. As we learn more about this partially understood plant, who know what doors will open down the line?
Follow MomentumPR for new trends and tips on the Canadian Markets.
- Published in Blog, Medical Marijuana
The Seven Deadly Sins of Investing
All to often we are presented with trading advice for what to do, what to look for, when to jump… here is a different take on what NOT to do. Small cap investing can be a tough game, and avoiding mistakes is as important as making the right desicion.
“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.” – Warren Buffett
Without further ado, I present James Boric’s (The Sleuth)
Rules for Small-Cap Investing: Repent Now! Avoid These 7 Deadly Sins
Be honest for a moment. Has something like this ever happened to you?
You are at a cocktail party or neighborhood barbeque. Your neighbor (the one you don’t like very much, but who thinks you are best buds) corners you between the hors d’oeuvres table and the horseshoe pit and starts talking about his recent good fortunes.
It turns out he made a windfall buying some startup biotech stock you’ve never heard of. A friend of a friend told him about the company and said it had a potential cure for breast cancer. It sounded legit, so he invested $10,000. Two months later he had enough money to pay for the brand-new BMW 5 Series sitting in the driveway across from your house.
The whole time your “bud” is telling you the story, you’re thinking, “How in the world can an idiot — whose claim to fame was when he lit his own hair on fire at the annual block party three years ago — make more money in the stock market than me? It makes no sense.”
Fueled by competition and envy, you immediately go home, log on to your computer and buy the same stock. Heck, if this moron can make a fortune, so can you. So you invest $10,000 too.
Rules for Small-Cap Investing:What Happens When You Don’t Follow the Rules
A month later, the company comes out with some breaking news. Its “sure-fire” cancer drug is no longer sure fire. Unexpectedly, it didn’t make it through the first phase of the FDA trials. To your horror, the stock immediately plunges and doesn’t stop until your $10,000 investment is worth a mere $500 (hardly enough to buy a scooter, let alone a new Beamer).
Sound at all familiar?
This is the scenario CFP John Wilkinson presented to 75 people at the Agora Financial Trader’s Conference in Puerto Vallarta, Mexico. He wanted to illustrate the routine mistakes traders and investors make that cost them a fortune — time and time again.
“The difference between professional traders and you,” John said on stage, “is that professional traders don’t fall victim to the seven deadly sins: greed, lust, envy, laziness, gluttony, pride and vengeance.”
The example of buying a stock in order to keep pace with your annoying neighbor is a classic case of envy. Sure, the story was a little over the top. But it happens all the time. And even if you haven’t fallen victim to the sin of envy, chances are you have violated at least one of the other six sins…
Rules for Small-Cap Investing: Deadly Trading Sin #1: Greed
This is where you desire more than you need. In the trading and investing world, greed rears its ugly head when you ignore price, asset allocation and position sizing. You buy too much of a “sure thing,” only to lose your shirt when you are wrong.
Remember, it is important to stay within your means any time you trade or invest. Never put more than 2-5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in a single position. Make sure you have a blend of stocks (small cap, large cap, emerging markets, growth, value) and bonds in your portfolio. The idea is to position yourself so you make money in all markets — and not get crushed if one thing doesn’t go your way.
Rules for Small-Cap Investing: Deadly Trading Sin #2: Lust
You hear about a stock that has such a sexy story you just have to own it. All of a sudden, things like fundamentals, balance sheets and cash flow statements don’t matter. You are drawn to the possibility of triple-digit gains. And nothing is going to stop you from investing.
It’s like Ralph Wanger told me last year in his Chicago high-rise…
How many guys go to the same chic bar every weekend looking to “get lucky”? Twenty hot shots scale the bar up and down looking for the hottest woman in the room. Then at the end of the night they all make their move — hoping to take the girl home. Problem is…
As they all make their move, they form a wall of drunk and sexually frustrated men around this one woman. Inevitably, she wants nothing to do with any of them and walks home — alone.
“Wouldn’t it be a lot better to look in the local library to find a woman?” Wanger asked me. “Most men don’t look there. It’s out of the way and not thought of as a sexy hangout. But a guy probably has a better shot of finding someone he could share his whole life with at the library than at a crowded bar with tons of competition.”
The same is true in investing, of course. The best opportunities aren’t the ones everyone is talking about already. The real money will be made by investing in the companies flying below Wall Street’s radar screen — the ones buried away in some library stack.
Rules for Small-Cap Investing: Deadly Trading Sin #3: Envy
This is when you hear a “success” story from a neighbor, family member or co-worker. They tell you about the fortune they made on stock XYZ. Feeling left out of the action, you buy the stock as well. You end up making an emotional decision to buy a stock. That’s almost never a good idea.
The true greats of Wall Street (Buffett, Templeton, Price, Greenblatt and Whitman) spend hours and hours each day understanding the business they are investing in. They make sure the company is fundamentally sound. They base their ideas on cold, hard facts…not emotion. And that’s exactly why they are billionaires and your neighbor isn’t.
Rules for Small-Cap Investing: Deadly Trading Sin #4: Laziness
You buy a stock without doing any due diligence of your own. Maybe you hear about a hot tip from a friend. You read an article in the newspaper about a sure-fire idea. Or you overhear your racquetball buddy talk about an opportunity with his broker. At the end of the day you think to yourself, “I am tired. I don’t have any time to do this research on my own. I trust my friend. So why not?”
Come on! This is your money! You work hard for it. So why not make sure you know how it is being invested? Read a company’s annual report. Look at its balance sheet. Look at some simple ratios. It will take you about two hours and will save you from investing in companies with no future whatsoever.
Rules for Small-Cap Investing: Deadly Trading Sin #5: Gluttony
You have unrealistic goals on a trade or investment. The average person (believe it or not) expects to make 400{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in three months on a trade!
This is the sin that drives me the most crazy. Let me tell you right now: you will NOT make 400{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in three months! Forget it! The greatest investors of all time make between 14-30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} a year. So make sure your expectations are realistic.
Rules for Small-Cap Investing: Deadly Trading Sin #6: Pride
You make a decision to buy a stock and shortly after calling your broker, you realize your reason for making the trade was completely wrong. Instead of admitting your mistake and getting out for a small loss, you stay in the position. Inevitably, what happens? Your small loss turns into a very big one.
Rules for Small-Cap Investing: Deadly Trading Sin #7: Vengeance
After taking a loss on a position, you feel the need to blame someone. Whether it is your broker, your neighbor or your favorite small-cap editor, you spend a lot of time cursing someone else for your bad fortune — instead of learning and trying to understand what went wrong so you can improve moving forward.
At the end of the day, you have responsibility for your own portfolio. You should never invest in anything unless you are comfortable with the decision. Forget everyone else. Do what is right for you.
I recommend you print out this list of common investing mistakes. Read it every time you think about putting your hard-earned money into a stock. Make sure you aren’t falling victim to any of the seven sins. If you aren’t, chances are you will do just fine.
So go now and repent.”
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Canada’s Newest Exchange – Aequitas NEO Exchange!
“We at Aequitas are on a mission to reverse the trends that currently trouble our markets, to restore confidence and to build a new exchange that puts the interests of investors and issuers first.”
-Jos Schmitt, President and Chief Executive Officer, Aequitas Innovations Inc.
On November 17th, The Ontario Trade Commission has recognized Canada’s newest exchange, the Aequitas Neo Exchange. It is expected to go online March 1, 2015. The last time this happened was the Canadian Securities Exchange in 2004. The ANE aims to limit high frequency trading with higher commissions as well as other bumps. Jos Schmitt, CEO of Aequitas Innovations, hopes to have 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the market in trade volume in the next 4-5 years, so its reasonable to expect some aggressive campaigns in the coming months for the exchange.
“We are thrilled to receive approval from the OSC to move forward and launch the Aequitas NEO Exchange,” Schmitt said.
“We appreciate the careful review undertaken by the OSC. We are now in a position to help promote confidence and build an exchange of the future using a bold new blueprint that puts investors, companies and their dealers first.”
Aequitas’ founding shareholders include Barclays Corp Ltd., a subsidiary of the well-known British bank; RBC Dominion Securities Inc.,telecommunications giant BCE; mutual fund companies CI Investments Inc. and IGM Financial (Investors Group); OMERS Capital Markets, the investment arm of the OMERS (the Ontario Municipal Employees Retirement System); and ITG Canada, a market maker.
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