The Best Way To Play The CBD Market

The Best Way To Play The CBD Market

 

June 6, 2019 -- InvestorsHub NewsWire -- via Goldman Small Cap Research -- 
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CBD-infused product sales have been strong this year and demand is high. Which company will come out on top in terms of sales growth and stock price appreciation? Puration Inc. (OTC – PURA – Speculative Buy). Here’s why.


FAST FACTS

• Demand Is So Strong, PURA Opened a 2^nd  Plant. PURA has been contending with an enviable problem; demand is high and growing but production has not kept up. The new capacity utilization should essentially double its previous production capability.

• Despite PURA’s light trading volume of late, a series of company initiatives and industry events serve as catalysts to drive PURA’s volume higher and the shares back to its 52-week high of $0.25. Depending upon the timing and magnitude of the aforementioned events, we believe that these shares have the potential to reach the $0.35 mark. 
• PURA Is the Best Positioned CBD-infused Provider. The bulk of PURA sales are in the South/Southwest regions. This is key because some southern states are designing their own regulatory guidelines to foster sales, potentially bypassing the FDA in case they drag their feet. 
• The NOUV Dividend Transaction Is a Sweetener. In our view, upon completion, the NOUV dividend adds meaningful value to PURA’s stock. Based on the current market cap, we believe PURA’s current share price does not reflect this hidden value. 
• Sales Estimates Likely Too Low; M&A on the Way? Given the big increase in production capacity, sales projections for 2019 could be low and sales growth next year could be further bolstered by M&A—which would leverage PURA’s early mover infrastructure, sales, and its current formulation advantages. A critical mass of sales from M&A could in turn make PURA a future buyout candidate,

What does this all mean?
These series of company initiatives and industry events should serve as catalysts to drive PURA’s volume higher and the shares back to its 52-week high. Depending upon the timing and magnitude of the aforementioned events, we believe that these shares have the potential to break well above it.

See Goldman Small Cap Research’s full report on PURA.

Goldman Small Cap Research has also recently published research reports on Zenovtek  (ZVTK), and Nouveau (NOUV).

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Rob Goldman
Managing Director, Research
Goldman Small Cap Research

SOURCE: Goldman Small Cap Research