EVSV
Cannabis

Enviro-Serv Inc (OTCMKTS:EVSV) Eyeing The $10 billion Industrial Hemp Market

The 2018 Farm Bill has become the newest sensation among cannabis players.

The bill which indirectly federally legalizes CBD within the United States as a result of the legalization of industrial hemp and its by-products such as hemp oil is currently on the favorable side of most cannabis players. As a result of the bill, players will now legally harness the CBD market and benefit from the associated high returns akin to the industry. Furthermore, with hemp having other roles such as in the textile industry, its versatility will also see the growth of under industries, ensuring job creation in the process.

Firms are therefore following with bated breaths the news on the bill. This is especially so for firms which have an interest in the hemp industry as well as firms looking to invest in the industry.

One such firm is Enviro-Serv Inc (OTCMKTS:EVSV).

Over the past one month, the firm has continued to issue forward-looking statements alluding to their bid to venture into the hemp industry. The $10 billion industry promises the firm significant returns in the long-term especially now that the industry is still in its growth stage. In addition, their investment in service delivery for the government – a $45 billion industry – has also been key in the firm’s statements.

The result of these has been an increase – albeit small – in the firm’s share price. The firm’s current price of $.0013 is a near 350% increase from their price on Friday last week of $.0002. Further to this, the average daily share turnover has also risen drastically to 36 million shares.

Readers can review this information in the chart below:

EVSV Daily Chart

The result of the firm’s expected investment in the two sectors, it becomes more and more clear that their value proposition is expected to increase. As a result, we opted to take a look at the firm and evaluate how this is expected to be done.

Brief Look at EVSV

Enviro-Serv Inc was founded back in 1997 with its headquarters situated in Tampa, Florida. Back then, the company was named Transfer Technology International Corp, however, back in March 2013 the firm changed its name to its current one as well as reoriented their strategic objectives and direction.

The firm has in the past offered lawn/landscape maintenance as well as pest control services, however, they are currently working towards venturing into the cannabis space through the investing in the industrial hemp industry.

Recent Developments

Two key factors come out clearly here, the firm’s venture into cannabis as well as their diversification within other government contracts. These two are discussed below.

More Government Bids

EVSV has previously been a player in government contracts. This is especially so given that the firm operates as a small enterprise thus benefiting from the allocation the United States government has for such firms. Currently, this allocation stands at $2 billion. As such, small firms always seek to benefit further from this allocation by diversifying the range of services they offer thus casting a wider net. This is the approach EVSV has taken up.

The firm is working two angles to increase their share: obtaining new licenses to provide more services and growing their reach through entry into different geographical market segments. With the firm currently focused within the Tampa region, their reach is limited to service provided therein. As such, management has taken up the responsibility of growing their reach to other parts of the United States.

Moreover, the firm has also applied for GSA certification which is separate from the pest control – which the firm has previously provided. Moreover, they announced that they are in discussions with two telecommunication companies to acquire them. The two companies provide cell phone services to government thus offering EVSV a chance to venture into a different segment, growing their service provision offering – a formal announcement on this is expected in a few weeks. Through this, they will be able to provide more services and obtain more contracts with the government, allowing for higher revenues and thus more profits.

The above two represent part of a three-year comprehensive expansionary plan which will see the firm grow their service provision business throughout the country.

The Hemp Factor

With the 2018 Farm Bill speaking to the legalization of CBD, EVSV is working towards venturing into this industry and expects that their revenues will grow drastically.

According to the firm’s CEO, the firm brings to the market expertise in the cultivation section of the business and will be a value add in the selection of fertilizer. So far, the firm is already in discussion with different parties operating within the cannabis industry to assist in this process. They are also working towards joint ventures with some of these parties so as to ensure they are successful in their venture.

Conclusion

EVSV has opted to venture into two massive industries which promise significant returns. With the firm currently operating as a small enterprise, it is clear that they are working towards assuring investors of significant returns akin to small firms. As such, their bid to venture into the above two industries is a sure way for them to achieve this. Upon this backdrop, we believe that they will seek to meet all that has been set out in their expansionary strategy thus remain bullish about their stock price.

We will be updating our subscribers as soon as we know more. For the latest updates on EVSV, sign up below!

Disclosure: We have no position in EVSV and have not been compensated for this article.

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Enviro-Serv Inc (OTCMKTS:EVSV) Eyeing The $10 billion Industrial Hemp Market
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