In this article, Insider Financial takes a look at penny stocks on the move: CBDL and CBGL. We are doing this to update our regular readers on what is happening in the land of penny stocks. We are not focused on the bagholders, but rather the penny stocks that are moving and why.
As we have stressed repeatedly to our subscribers, the key to trading penny stocks is finding momentum BEFORE it happens. We got our subscribers in early on TSNP, which you can read our latest here, ENZC, which you can read about here, and recently CBDD, which you can read here.
We wrote up CBD of Denver on November 17th when the stock closed at $.0015. We said that CBD of Denver was an extremely undervalued play, which you can read here. After last week’s move to $.0328, some saw potential gains of 2000%.
Our subscribers have fared even better as they were alerted at $.001. Those that got in at the alert price saw potential gains of 3180%!!
Now, when we say that we find momentum BEFORE it happens, we are swing traders looking to position our subscribers BEFORE the move happens. This is where the big money is made and why so many of our subscribers are sitting on gains of over 5000% in ENZC and over 10,000% in TSNP. If you want to day trade, this is not the place for you. If you want to make a few hundred bucks and then lose a thousand the next, we hear Tim Sykes has plenty of openings.
We always alert our subscribers first before we publish for our regular readers. This is the value of having a subscription to Insider Financial, which you can sign up for here. We alert our subscribers with our best ideas before our regular readers.
Now that we got that out the way, here are 2 penny stocks on the move: CBDL and CBGL.
CBDL is the latest 10-bagger to hit the OTC Markets. Last week CBDL started the week in the triple-zeroes before exploding up the charts in a matter of days. This huge move comes after the company dropped 2 huge PR bombs.
The first PR was that cannabis recreational use has finally come to Arizona following the overwhelming passage of Arizona’s Proposition 207 – the measure that legalizes recreational use of cannabis throughout the state. Coupled with the President-elect’s promise to decriminalize cannabis on a federal level, LBC Bioscience Inc. said that it believes that 2021 is shaping up to be its best year yet.
“We anticipated recreational use happening in Arizona for the past 2 years, and the timing of the AZ bill’s passage couldn’t have worked out better for our company,” said Lisa Nelson, LBC Bioscience Inc President and CEO. Furthermore “We have also identified several exciting farm sites in the Wickenburg area that could allow us to take advantage of Prop 207 and continue our expansion”.
CBDL now plans to ask Arizona’s Congressional Delegation to consider federally legalizing cannabis, even if the bill included the ability of states who are not willing to go along to exempt themselves from the regulation if they so desired – similar to the legislation that passed to end prohibition. The company has previously mentioned a desire to expand as much as possible over the past few months despite the ongoing pandemic.
CBDL has developed and is retailing/wholesale a full line of cannabidiol based organic products including CBD Drops, Gumballs, Honey Sticks, Pain Relief Creams, Anxiety & Sleep Supplements, Edibles, Coffee, Skincare Line, Pet Line, Tablets, and more.
The second PR bomb was the introduction of CBD Flower along with two tasty flavors.
The first strain is called Hawaiian Haze and is said to remind people of a blissful Hawaiian getaway. This strain of CBD is known to give off tropical hints of pineapple, mango, lemon, and even a slight hint of chamomile. It has a strong terpene profile of myrcene and beta-caryophyllene.
The second strain is known as Sour Space Candy that originates from Oregon. This strain has an exclusive flavor profile of candied apples with a sour kick. Users have given this flower high praise mainly for the smell and taste.
CBGL is a derivative play off MCOA, which we talked about briefly last week in this article. CBGL owns 650 million shares of MCOA worth $7.15 million. This makes CBGL extremely undervalued when its current market cap is just $7.2 million. The market is currently valuing the business at zero.
Among the highlights of CBGL’s business is Project Varin. MCOA is working with CBGL’s Project Varin to discover and market new methods to infuse hemp extracts and cannabis into food, beverages, and other consumer products.
Here, CBGL has made great strides on the intellectual property front, with four provisional and one non-provisional patent filing on new methods to infuse cannabinoids into foods, beverages, and consumer products.
CBGL has recently completed product development on what is believed to be the industry’s first food-grade cannabinoid nano formations designed to rewrite the cost and efficiency equation for the coming nationwide cannabinoid infusion marketplace. Cannabis Global expects to soon begin announcing a series of new products based on this innovative platform with additional non-provisional patent filings expected over the coming weeks.
CBGL also owns The Hemp You Can Feel™. This product line is based on one of the most innovative hemp infusion technologies in the marketplace – a unique process where honey bees are provided cannabinoids which the bees use to make a unique non-infused, water-soluble compound, which is used to infuse non-alcoholic cocktail mixers, coffee products and the unique line of organic and artificial sweeteners.
Sales of these lines are being driven by the third-party platforms, including Amazon, which has accepted several shipments in increasing size. The technology partner for this innovative line is Phyto Pharma, LTD of Israel.
CBGL just acquired Ethos Technology LLC, a Los Angeles startup specializing in ultra-secure cannabis transport containers for the commercial cultivation, processing, and distribution markets. Cannabis Global plans to utilize this technology to market a line of secure transport products under the brand name Comply Bag.
CBGL believes the current generation of cannabis transport and security products has not advanced to keep pace with the industry. All states where cannabis has been legalized require cultivators, processors, and distributors to track all shipments, and shippers need to ensure the exact contents of what is shipped to be received by the intended recipient. The new products to be released by Cannabis Global are designed to meet these needs.
CBDL and CBGL MARKET OPPORTUNITY
CBD stocks have been hurt by two things this year – the FDA and COVID-19. FDA scrutiny of CBD stripped food products from the menu in 2019. However, the FDA appears on a path to legal clarity via a bill such as HR 8179 or a change in FDA enforcement policies. The CBD industry expects actionable guidance by the FDA in 2021 and a vaccine or treatment for COVID-19 should exist by this timeline.
Overall, cannabis and CBD stocks have underperformed the market over the past year. Recently, market sentiment has started to shift towards the bulls. A big part of the enthusiasm surrounds the upcoming Biden/Harris administration. Vice President-elect Kamala Harris said on the debate stage that the Biden/Harris administration is in favor of cannabis legalization on the federal level.
Known as the MORE Act, the bill passed by a mostly party-line 228-164 vote. However, the Republican-controlled Senate is unlikely to take up the legislation.
The measure, sponsored by Rep. Jerry Nadler, D-N.Y., would remove marijuana from the federal list of controlled substances and expunge some marijuana-related criminal records. It would still be up to states to pass their own regulations on the sale of marijuana.
Congressman Matt Gaetz of Florida was one of a handful of Republicans to vote for the legislation and the only Republican co-sponsor of the legislation. Gaetz said on the House floor the bill was necessary because current federal prohibitions on marijuana “constrains” the states. Noteworthy about Gaetz is that Trulieve Cannabis, which we have called best in its class, is a company in his district.
WHY THIS MATTERS
The bill’s likely passage comes as more states have legalized marijuana and public opinions on the topic have shifted.
Four more states passed marijuana legalization measures in the November elections, bringing the total number of states with legal marijuana use for adults to 15. Medical marijuana is legal in 36 states.
President-elect Joe Biden has called for the decriminalization of marijuana and the expunging of convictions for marijuana use. Biden’s campaign website said he supported the legalization of medical marijuana and would leave decisions on recreational use up to the states.
CBDL and CBGL Bottom Line
CBDL and CBGL have the market’s attention now. CBDL has run more than CBGL, but still has a smaller market cap at $6.1 million. However, CBGL just had its first big green day on Friday and could be setting up for a big week. We will be watching and updating as we see fit. Either way, you can’t go wrong owning CBDL and CBGL.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.