Today, we are bringing you an interesting story about another marijuana stock that has returned a lot of money to the investors: Novus Acquisition and Development Corp. (OTCMKTS:NDEV). You can check it yourself on the website here. This company is said to be a diversified insurance entity in health, liability, annuity and accident, and the nation's first carrier/aggregator, offering a cannabis health plan. The shares were worthless a year ago, but it seems that company started to communicate a little bit about its operations and the stock price started the uptrend. The share price went from almost $0.01 in January, 2016 to $1.25 in December, 2017 with a lot of volume. Take a look at it:
In this article, you will find the most recent developments of Novus, as well as mainly an analysis of a press release issued on March 27, 2017, which contains positive information about its last quarter. The market seems to have appreciated this new information, and that is, in fact, the reason that Insider Financial wants to report it.
Positive Momentum - Why the share price is in an uptrend?
According the last communication from the company, reported on March 27, 2017, its quarterly revenues increased 16% to $24,482 and its net income was $16,285. These good numbers resulted into 9% increase and net asset value reached $1.4 million. In addition, the company's balance sheet shows cash balance of $53,984 at the end of the quarter. If these numbers were correct, the company would be making a great year.
The company stated the following opening statement in the same press release:
"Novus is the first of its kind to enter into the legal medical cannabis space as an insurance entity and continues to blaze the trail with its unique business model. With a low fixed overhead, Novus is pleased to demonstrate positive trends in many facets of its efforts in creating an insurance market in the legal medical cannabis and other niche insurance segments." Source
Although we have already commented on the stock returns that this stock delivered, but we would like to note that the company also made a comment about it. This is also from the press release:
"While the Company is not required to, and does not normally comment on its stock price, it will be addressed due to the many inbound shareholder inquiries. Many Cannabis Index stocks have increased volatility in price and in volume. Novus is no different, with a lot of positive attention due to the Company's niche business model, the stock price rose from $0.02 in August 2016 to as high as $1.51 in December 2016." Source
OTCMKTS:NDEV Previous Developments
We went to check the previous developments of Novus on this website. From the communications delivered by the company, we would highlight the creation of its "automated insurance web portal": http://getnovusnow.com, which was available from March 8, 2016, the acquisition of its only subsidiary WCIG Insurance Services, Inc., a California insurance brokerage, and finally, the acquisition of Voda Technologies, Inc. on March 22, 2013.
We believe that these developments are the typical key steps of a newly created structure that grows inorganically, acquiring knowledge and assets from other companies created previously. This strategy will make Novus grow at a very fast pace. We believe investors like this kind of growth play and the share price is in an uptrend because of it. In any case, it is clear that in order to be able to profit from this kind of company, the investors need to be up to date to be able to buy when the company acquires a new business entity. You will be able to receive this kind of information in our newsletter.
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OTCMKTS:NDEV Capital Structure and number of shares outstanding
Novus noted that it did not raise capital in 2016 and it does not want to do it "to protect shareholder equity". We wanted to bring some more information than the one provided in this press release and we checked the amount of shares outstanding and the market capitalization of the company on this website:
- Market Value: $31,105,024 as of Oct 19, 2016
- Authorized Shares: $200,000,000 as of Oct 19, 2016
- Outstanding Shares: 92,853,624 as of Oct 19, 2016
- Float: 13,976,906 as of Sept 30, 2016
We are providing you this information so that you can monitor the amount of shares issued by the company if you decide to make an investment here. You need to protect your capital, so you need to check the dilution that the company may create. We encourage you to check our website for some more information about the next decisions of Board of Directors of Novus. We will include information about further capital increases, if the company makes any.
Conclusion
Novus seems like a company that we will need to supervise closely since it is sending many good new communications to investors. The market seems to appreciate such news since shareholders are buying shares and the price is in an uptrend. In addition, the market seems to appreciate the type of growth strategy elected by the management of the company and the fact that the company has stated that it may not be willing to increase the shares outstanding is a good sign. To sum up, try to monitor what the company does in the future since it may be an interesting stock to follow. But, like always, make your own analysis or contact your financial advisor before making any investment decision.
We will be updating our subscribers as soon as we know more. For the latest updates on NDEV, sign up below!
Disclosure: We have no position in NDEV and have not been compensated for this article.
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