Singlepoint Inc (OTCMKTS:SING) Has Finally Bottomed

2018 was a rough year for shareholders of Singlepoint Inc (OTCMKTS:SING). Just last week, the stock was 90% down from its 52-week high. However, Singlepoint is signaling that the worst is behind the stock after jumping 94% while the Dow dropped 660 points. Investors are on the hunt for microcap runners and SING looks to be back on the radar screen. SING Daily ChartBackgroundFor those that are not familiar with Singlepoint, here is a little background info. SinglePoint is a technology and investment company with a focus on acquiring companies that will benefit from the injection of growth capital and technology integration. The company portfolio includes mobile payments, ancillary cannabis services, and blockchain solutions. Through acquisitions into horizontal markets, SinglePoint is building its portfolio by acquiring an interest in undervalued companies, thereby providing a rich, diversified holding base. Through SingleSeed, the company is providing products and services to the cannabis industry.Benefits from the recently passed HEMP Farm Bill

After years of prohibition, industrial hemp has now been federally legal for a little more than a week. President Trump signed off on the 2018 Farm Bill December 20th, which means hemp is no longer a schedule one substance. This is a huge win and opportunity for SinglePoint. The company’s subsidiary SingleSeed.com is an e-commerce based business that sells and supplies industrial-based hemp cannabidiol (CBD) products. As hemp has become more mainstream and now a fully federally legal commodity the company plans to add more to its offering. Ranging from Biofuel to construction materials to extracting cannabidiol used to treat various ailments and wellbeing, industrial hemp now has an opportunity to be competitive in the global marketplace.

The management of Singlepoint believes that the reclassification of Hemp could be a big driver for the company’s subsidiary SingleSeed. SingleSeed provides hemp-based CBD products at SingleSeed.com ranging from tinctures to waters.

SinglePoint is currently exploring opportunities to produce industrial hemp through joint venture opportunities with leading hemp growers. The company is also exploring an investment in a development program in which strains of CBD extracted from hemp are grown in a photobioreactor which would greatly reduce the cost and time to produce a potentially pharmaceutical grade product.

SingleSeed and its parent company SinglePoint are making major progress to quickly get in position to be a key company in the nascent industry, which is expected to top $20 billion by 2022. According to the Congressional Research Service, the U.S. has imported approximately $100 million worth of Hemp products on average each year. With the 2018 Farm Bill going into effect January 1st the doors will be opened for exponential growth in a new market with vast opportunities. According to CEO Greg Lambrecht:

“We are excited for these new opportunities in the hemp market and have been preparing the company to be in a position in the event the 2018 Farm Bill passed. Now that it has, it’s a matter of closing on the negotiations we have started. I intend and plan for SinglePoint to be a key player in the distribution of hemp products and sourcing the best products we can in the market."

Bottom Line

Currently trading with a market cap of $33 million, SING is an exciting story among HEMP stocks. The company is seeking new deals and currently negotiating potential acquisitions across different sectors and will continue to grow revenue through its acquisition model. Management is confident that revenue growth through hemp-based initiatives will be successful in 2019 and beyond. That's why we believe that if SING is not on your radar screen now, it definitely should be.

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

Image courtesy of Dave Goodman via Flickr