CANNABIX TECHNOLOG (OTCMKTS:BLOZF): Buy The Dip

Back in 2016, we started writing about CANNABIX TECHNOLOG (OTCMKTS:BLOZF). It looked like a top play on the wave of marijuana legalization. In our opinion, it is still a great play. Other sites are now looking at this profile with skepticism. But, we believe that there are many catalysts for this name. This article explains why.Before we proceed further, let's quickly check share price action of 2017 and 2018.After moving sideways in 2017, the stock price jumped in November. Many reasons were associated with this stock price jump. But, the most significant was, first of all, the filing of Patent Cooperation Treaty applications. Additionally, 95% completion of the “Beta 3.0 Marijuana Breathalyzer” also helped in this regard.Market participants pushed the buy button. As a result, an impressive momentum arrived. From $0.5, the share price increased to $1.5 before setting back to $1.0. The movement drew our attention. So, we wrote CANNABIX TECHNOLOG (OTCMKTS:BLOZF) Delivers 50% Gains For Our Subscribers; More To Come?The story did not end there.The upward trend continued in December and ended with a violent movement. The stock returns delivered were fantastic. In fact, too much for the market regulators. They contacted the company to understand what was going on. The company responded to be "unaware of any material change." We explained our opinion in CANNABIX TECHNOLOG (OTCMKTS:BLOZF) Is A Top Play On Recreational Cannabis.In 2018, we saw how the share price reversed. In our opinion, there is no specific reason. First of all, there has been a generalized sell-off in the sector. Many publicly listed cannabis companies have lost millions. BLOZF is obviously correlated. It has also lost some part of its market capitalization, but not as much as others.Additionally, February has been so far a bad month for the market. Many are afraid of the end of cheap money and are selling stocks. The reaction is also affecting BLOZF, like it is affecting every publicly listed company.Have a look at the following stock chart. Form your own opinion: 1-year chart for BLOZFLet's provide some business background of BLOZF. CANNABIX TECHNOLOG is headquartered in Burnaby, Canada. It develops a marijuana breathalyzer for law enforcement. https://youtu.be/0iRWNOGdQ-4Recent DevelopmentsIn 2018, the company only put out one communication; it was optimistic. In fact, it made the stock price spike up from $2.14 to $2.82.Why?In the new year, the company could complete the "Beta 3.0." The following is, in our opinion, what you need to know:

"The Company has successfully detected THC using the device in stand-alone mode demonstrating direct correlation."Source

That's not all. Read the following new improvements:

• Enhancements to the ion source: it size has been reduced with sustained stability, providing improvements to transmission and overall device sensitivity.
• A tunable self-contained detector: It can be used in both independent FAIMS operation or “pass-through” mode.

There is more.Thanks to recent work, the device is easily coupled to conventional MS equipment used in toxicology labs. This is great news. It will be an excellent barrier to entry for competitors since other breathalyzers need to be secondarily confirmed by independent MS.People are not looking at the demandShorts say that BLOZF's book value per share is low as compared to the share price. Fair enough, we agree with them. But, in our opinion, they are looking at the wrong indicator. Book value is suitable for mature businesses. But, it is not useful for emerging companies.The critical feature here is the massive demand for the breathalyzers as well as the company's growth. Thus, we need to address the number of traffic accidents associated with cannabis, which are numerous. Also, the amount of cannabis breathalyzers in the market is tiny.Shorts should check these two factors. Then, they will recognize that their analysis is incorrect.ConclusionCurrently trading with a market cap of $184 million, we need to stay tuned to BLOZF. The financial situation is stable. The balance sheet shows $2.7 million in cash. Additionally, the assets are worth $6.8 million, while the liabilities are only $0.04 million. Thus, the credit profile is favorable.To sum up, BLOZF's operations are not behind the recent reversal. In our opinion, the challenging market conditions are the primary drivers. If the market rebounds again, BLOZF will continue its upward trend. Hence, a buy-the-dip opportunity arises.Be sure to check out our coverage on BLOZF!We will be updating our subscribers as soon as we know more. For the latest updates on BLOZF, sign up below!Disclosure: We have no position in BLOZF and have not been compensated for this article.Image courtesy of KOMUnews via Flickr