x min read

Kush Bottles Inc (OTCMKTS:KSHB) Is Gaining Strength, More To Come?

Kush Bottles Inc (OTCMKTS:KSHB) Is Gaining Strength, More To Come?
Written by
Chris Sandburg
Published on
January 3, 2017
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook
InsidrFinancial

Kush Bottles Inc (OTCMKTS:KSHB) ran up ahead of the year end on essentially no news. Being that we've taken a look at the company on a number of occasions in the past, this sort of action justifies a revisiting of the company in question, in an attempt to determine whether or not it has altered our bias. So, let's do just that.For those how missed our previous coverage, it's available here. We concluded that Kush had a couple of credits in its back pocket, each of which combined to the suggestion that markets owed the stock an upside run. That was on November 23, and looking back, it looks like we picked the trough of the correction to the penny. The company has since gained to highs of $3.5, and now sits at $3.2 – gains of 60% and 46% respectively.What's happened since, and how, if at all, has it changed our bias? Before we get into any developments, here's a quick introduction to the company. Kush bills itself as marketing and selling packaging products and solutions for the medical and recreational cannabis industries. That's pretty vague, but a look at its product catalog reveals that the company sells things like pop top bottles; child resistant exit, paper exit, and foil barrier bags; as well as containers for storage, transport, that sort of thing. Basically, if you want to store or transport cannabis – discretely, securely etc. – Kush probably has a product that meets your criteria.Of course, with product packaging being its primary operations, the company has gained considerable strength on the back of the US recreational ballots. Right now, medical dispensaries, care facilities, that sort of thing are its primary market. With the recreational market set to expand rapidly, however, we see this base rapidly expanding to cafes, recreational dispensaries, lounges and, of course, homes. Child resistant marijuana storage is going to be a key part of industry expansion, and just a couple of months ago, Kush announced a new, USA-made example of one such product, a child resistant bottle.So what's happened recently that's of note?The company added Eric Baum to its Board of Directors back on December 8, brought in to replace Greg Gamet, who resigned from the Board on the same day. He's a venture capital guy, and will likely be set to task bringing in cash with which Kush can fund its expansion. Shortly before this appointment, the company brought Liolios on board to help undertake a so called "Strategic Investor Relations Program".Liolios bills itself as a highly selective and comprehensive investor relations firm specializing in small-cap companies. View this one as you will, but at least near term, we see it as a positive development. Whatever the ethical standpoint readers take on these sorts of entities, it's their job to get a company's share price to rise. Liolios has been around for close to twenty years, and we expect it to be able to do just that. It's not a long term thesis, of course, but there's definitely some short term momentum to be had as Liolios gets underway with its promotional activity.From a development standpoint, then, that's pretty much it. The company isn’t risk free, and it's seemingly moving as the result of a low float, but it stands out in the space in that it generates sales and has a little over $1 million cash on its books. Kush also has a total of $5.6 million in assets compared to $978K liabilities, and for the year ended August 31, 2016, the company brought in a net profit of $71K on $8.2 million revenues. That's far more than can be said for some of its so called peers.We will be updating our subscribers as soon as we know more. For the latest updates on KSHB, sign up below!Disclosure: We have no position in KSHB and have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.