Cannabis Strategic Ventures (OTCMKTS:NUGS) Is A Cannabis Runner

Cannabis Strategic Ventures (OTCMKTS:NUGS) seems to be the latest micro cap runner being analyzed by many in Wall Street.

Company Logo - Cannabis Strategic Ventures OTCMKTS:NUGSThe share price increased recently from trading below $0.1 to hit the six-months highs of $0.8. The share price move represents astonishing returns even for an OTC stock.We appreciate this fact, but we believe that something else is even more significant.The trading volume, which has been higher than 0.5 million some days, is the feature to be studied closely. It is showing that many people in the market became interested in the stock as a result of the recent developments released.Have a look at it before we provide more details:

1 month chart for NUGSBusinessCascade Energy, Inc. was incorporated in the State of Nevada on December 23, 2003. The company focuses on the fast-growing medical and legal recreational cannabis sectors. More specifically, NUGS plans to provide "temporary, permanent, and long-term staffing solutions, employment and human resources consulting and Professional Employment Organization services to the legal Cannabis space."We believe that the cannabis industry is the right place to look for opportunities right now. For starters, the legalization of some forms of cannabis in some States and Canada has pushed up the demand for cannabis products.Additionally, stocks like NUGS are also very much demanded and their price has increased quite a bit. We have written many articles about companies operating in this industry, which we encourage readers to have a look at. It will help understand what's going on with Cascade Energy, Inc.Recent DevelopmentsThe most interesting from the company was released in December 2017, when the share price commenced to creep up. We will review the announcements made in that month.On December 5, 2017, it was announced that the company is changing its name to Cannabis Strategic Ventures, Inc. The name change was obviously intended to show the new strategic direction, and operational successes in the fast-growing legal cannabis marketplace. The FINRA had already approved it.Additionally, the company noted that it has found the first customer in the State of Washington and there are several more in the negotiation process.That's not all. The company provided some interesting stats about the cannabis industry. The legal portion of the cannabis sector in North America is currently producing only approximately 12% of the $56.1 billion in overall cannabis marketplace revenues. This means that companies like NUGS are targeting a market, in which only a few companies are operating. As a result, we believe that the growth of the industry in the future will be large and NUGS could be able to grow at a high pace.That's not all. The company noted that the "marketplace is booming" and many companies need the outsourced Human Resource and Staffing services that the company provides. The first contract, which is valued at approximately $400,000 through 2018, is good proof of it.But, we needed to wait a little more to hear the best.On December 19, 2017, the company released that it is creating a financing and investment pool geared toward investment in cannabis projects in California. Additionally, it was said that the pool will target cultivation opportunities and the company will manage it. Simon Yu, CEO of the company, said the following about these opportunities:"While most of our investors consider us to be an employment and staffing service targeting the emerging cannabis sector, we now plan to show investors a much broader path for the Company. While we have already signed an employment deal in Washington with more on the horizon, we are now beginning the process of performing due diligence on multiple emerging cannabis cultivation opportunities, with the most advanced project being located in Santa Barbara country." SourceAdditionally, it was said that the company will also be looking to buy assets in the areas of Real Estate, Cultivation, Extraction, Packaging and Dispensary operations. In our opinion, the expansion makes a lot of sense. The company has acquired know-how in the cannabis industry and will be able to use in other segments of the business. Well done.Very Solid Balance SheetThe most outstanding in this company may be a little hidden for those who don't research in the company's financial statements. The balance sheet is quite solid. Have a look:

• Cash and Cash Equivalents: $0.2 million
• Net Receivables: $0.4 million
• Total Current Assets: $0.67 million
• Total Current Liabilities: $0.06 million
• Outstanding Shares: 28,673,968 shares

The amount of assets as compared to the amount of liabilities is very large, which means that the company will not have to worry much about financing. Additionally, it shows that shareholder's risk is low.ConclusionCurrently trading with a market cap of $22 million, NUGS is an exciting story among small caps. The company is already reporting sales of $0.1 million and showing large revenue growth as well. We believe that if the company continues this trajectory and can grow at the same pace that peers do, the share price should keep delivering good returns.To sum up, there is a lot to like on this name!We will be updating our subscribers as soon as we know more. For the latest updates on NUGS, sign up below!Disclosure: We have no position in NUGS and have not been compensated for this article.Image courtesy of Dave H via Flickr