VRUS Verus International Inc (CE)

 

CLS Holdings (OTCQB: CLSH) just announced record sales of $1.16 million for the month of August alone. 

 

Miami, FL, September 10 2019 -- InvestorsHub NewsWire –– EmergingGrowth.com, a leading independent small cap media portal with an extensive history of providing unparalleled content for the Emerging Growth markets and companies, reports on CLS Holdings USA, Inc. (OTCQB: CLSH).

 

 

CLSH may not be at these levels much longer.

 

See the Press Release and more on CLS Holdings, Inc. (OTCQB: CLSH) at EmergingGrowth.com

https://emerginggrowth.com/stock-report/?code=clsh

 

CLS Holdings (OTCQB: CLSH) (CLSH.CN) is a best of breed stock that combines all of the best attributes of cannabis stocks into one company. 

 

CLS Holdings (OTCQB: CLSH) just announced record sales of $1.16 million for the month of August alone. 

 

See the full press release here.

 

• $50 million acquisition which should throw off $20 million in EBITDA the first year.
• $10 million in the Bank
• Strong medical and retail marijuana franchise in both Massachusetts and Nevada.
• With the advent of recreational sales in in Massachusetts they are at an inflection point where sales growth is going to compound higher. 

See the full report on CLS Holdings USA, Inc. on EmergingGrowth.com here.

See more news on CLS Holdings USA, Inc. on EmergingGrowth.com here.

 

CLSH's management team has also fully aggregated one acquisition know as Oasis Cannabis.  This is one of the top dispensaries n Las Vegas and one glance at the interior retail space will tell the story with its clean professional look. 

 

CLSH Management also has another acquisition in the pipeline to hit in Q1 2020.  The next Brockton Acquisition called In Good Health is unique, because the total purchase price is $50 million in cash, notes and equity, but they are getting a company that has the potential to throw off $20 million in EBITDA the first year assuming modest growth.  Getting a marijuana company for 2.5X profits is unheard of when the average price to sales is 17X. 

 

They also have a decent balance sheet with $10 million in the bank at FYE 19 and the past quarterly reports have showed a positive trend that looks like they are turning the corner to profitability.  They also have plans to grow their operations capacity and have a retail brand known as City Trees which is a specially formulated THC distillate used in vape products, tinctures, and caplets.  This product is gaining traction in the market and is distributed in 47 dispensaries.  They are vertically integrated and in every way a seed to shelf company.  This means there are so many chances for cross promotion, which eventually finds its way to the bottom line.    

 

Many still see huge opportunity in cannabis but the industry itself has gone through a massive correction in its price to sales multiples in just the past 6 months.  This means investors are not as ready to pay for sales as they once were.  Leading in the contraction are the top players like Canopy Growth (NYSE: CGC), Tilray, Inc. (NASDAQ: TLRY), and CuraLeaf (OTC Pink: CURLF) which nearly halved their multiples.  The biggest standout was Cronos Group, Inc. (NASDAQ: CRON) which went from 255 down to 19.  This multiple contraction means that investors will need to see increasing revenue growth quarter over quarter to sustain the stock prices of these companies.

 

Investment Summary

The cannabis sector clearly looks like it has put in a double bottom on a technical basis so now could be an opportune time to step into the sector and buy value.  The next stage of growth could very well be mergers and acquisitions, but it's unlikely that the top brands backed by conglomerates will be creating mega brands.  Those businesses like Tilray, Inc. (NASDAQ: TLRY), Cronos Group, Inc. (NASDAQ: CRON), and Canopy Growth (NYSE: CGC) will start to work when these large brands start selling and launching CBD or THC infused products.  Mergers an acquisition plays could also begin to happen in the space and represent big upside for investors. 

 

The sweet spot in the sectors seems to be a company that can successfully complete acquisitions at fantastic valuations while increasing their revenues and profitability all at once. CLS Holdings USA, Inc. (OTCQB: CLSH) is a best of breed stock with all the characteristics an investor is looking for including a great price.  By all metrics the stock seems extremely undervalued and ready to run.  After the acquisition in 2020 revenues are expected to be $50 million. Using a modest multiple of 5X sales puts a one year price target of $2.00 share on the stock.  With so much upside potential and very little downside risk it makes sense to go with the best of breed. 

 

CLSH may not be at these levels much longer.

 

See the Press Release and more on CLS Holdings, Inc. (OTCQB: CLSH) at EmergingGrowth.com

https://emerginggrowth.com/stock-report/?code=clsh

 

 

Other Companies in the news and featured on EmergingGrowth.com

 

Verus International, Inc.

Verus International, Inc. (OTCQB: VRUS) popped yesterday 10% on anticipation of an earnings release.  The stock has run up over 100% two weeks and has strong resistance at $.038.  Depending on the numbers, the stock may gap but beware of the resistance level.  

 

Have a look at CLS Holdings, Inc. (OTCQB:CLSH) who just released numbers.  This could be the most undervalued stock in the cannabis sector.

 

NorthWest Biotherapeutics, Inc.

Northwest Biotherapeutics, Inc. (OTCQB: NWBO) shot up over 20% on over 20 million shares traded in one day at the end of August.  Since, the stock has had a healthy pullback and fun up again last week after it released its first press release since June discussing the expansion of its management team. Volume has been thinning so be mindful of its support and resistance of $.18 and $.28 respectfully.

PCT Ltd.

Yield sign company PCT Ltd. (OTC: PCTL) has been on a freefall since the stock was $2.50 per share over a year ago. With no news to speak of on OTCMarkets and an NT 10-Q filed last month for the period ending 6/30/19 volume maintains over an average of approximately 20 million shares per day. After a recent run of about 400%, the company has fallen and is on the verge of going sub-penny.  Be careful.

 

Have a look at CLS Holdings, Inc. (OTCQB: CLSH) who just released numbers.  This could be the most undervalued stock in the cannabis sector.

 

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