Relaxed Punter,
You are absolutely spot on!
We actually received a question on our free Trading For Millions blog over the weekend, asking whether we should update the latest 25 June analysis, which was 6,500 words. There's literally no need because, while the share price has gone up, it's merely a deserved and well earned reflection that IHL's not just a penny stock now. It's about time and the train is about to leave the station again. The company's now starting to gain notice and there's plenty of things that could drive the share price higher in the short term:
- four fully funded clinical trials about to commence- lots of news due on this side of the business
- update from Pace Sports (flagged in last quarterly) and international expansion
- possibility of early exercise of Cannvalate options, demonstrating there commitment to IHL (which is already clear)
- more potential deals from the dental business. The company has proven that's it's focused on growing it with the FitGuard & Pace Sports & Boxing Australia deals. Most of these deals have gone unnoticed by the market in comparison to the pot business. It's crazy! We suspect there's more deals in the pipeline, as the company advances and grows the dental business into a powerhouse, which could surprise the market. Management are hell bent on getting the dental business free cash flow positive. We are confident they see the magnitude of their sleep guardian which, as we explained at length on the free blog, is the exact same product (pretty much) and Somnomed's. SOM is worth over $100 million. Would be great for the business to pursue this product, as it offers significant revenue potential - especially combined with the dronabinol business.
- new quarterly update due any day now
Fundamentally speaking, IHL is exceptionally cheap compared to its peers. The comparisons with BOT & AGH are well known, and there's lots of room to catch up. But what often goes under the radar is the comparison to BDA, which is a very similar company. BDA sells cannabis oils (which IHL could be selling in the future) and is doing one clinical trial. IHL is valued slightly more which is fair because BDA is hemorrhaging money on a quarterly basis, unlike IHL. IHL also has an equity partnership with Cannvalate, unlike BDA, and it's pretty much funding out trials. The thing here is, while IHL is trading at a slight premium to BDA, BDA has been able to attract ongoing institutional investment and just did a major deal with H&H Group, which owns Swisse Wellness. Go figure! IHL hasn't really seen any institutional involvement yet. But, with the dental and MedCan business progressing at a rapid pace, it could happen sooner than anyone thinks. That should easily put us above 10-15 cents and it won't just be there for a day. So its hilarious when we receive questions asking whether we should update our 25 June analysis on our free blog. Sure lots of it came true. But much of our analysis (written a month ago) hasn't even happened yet, with plenty of our predictions left to come true.
There's plenty of news in the tank which could drive the share price higher.
Happy holding.
To your first million,
-Trading For Millions
Expand
