Guys THC is a fantastic, genuine company making real positive progress towards becoming a leading company in the industry over the next few years and the recent manufacturing licence for the Bundaberg facility further consolidates this fact.
Anyone who expected a huge pump from this announcement were kidding themselves. Unfortunately due to recent events there is a lot of disgruntled holders that lost trust in management and this has resulted in huge selling pressure hence why it continues to sit at these extremely low prices.
For existing shareholders, there are only two logical decisions you can make at the moment; continue to hold until the unhappy shareholders have sold their shares, or exploit this opportunity and increase your holding at extremely cheap prices. If you are considering selling your shares right now, then you have to question why you first got involved in this company and the wider industry in the first place.
Assessing this rationally, one cannot argue that it is not an exceptional investment opportunity at this price. You're looking at the most progressive cannabis company in Australia listed on the ASX. This is a company that is making genuine positive steps towards becoming a cash positive leading cannabis player in the Asian and Oceania market at a market cap that is way under most of its current rivals. They are actively utilising their current licences to fully execute the Farm to Pharma model and are making themselves a prime candidate for an eventual takeover from a Canadian conglomerate and will attract a very handsome price.
From my assessment, there are three genuine promising cannabis stocks on the ASX. Cann Group ($290m), Elixinol ($477.8m) and THC Global ($65.3m). All three have made significant progress in utilising the opportunity that the teething Australian market has to offer and are future proofing their company. Every other cannabis company on the ASX, in my opinion, doesn't come anywhere near the level of development that these three companies have shown and are mainly trying to exploit hype in the industry; but these three are genuine and have shown huge potential.
Yes, there are flaws in THC without a doubt. They have genuinely done a dreadful job at appeasing and generating trust in shareholders and that has cost them greatly in the past. However, this shouldn't deter one from the fact that the company has actually done a fantastic job in setting this company up to thrive in the industry over the next couple of years. If anything, the mistakes management have made and the resulting dive in the SP has opened up a great investment opportunity for those wanting to invest in a promising company in the cannabis market. Investing at this level is about as low risk as you can get if you want to participate in Australia's incoming green rush.
Of course, DYOR!
THC Price at posting:
48.5¢ Sentiment: Buy Disclosure: Held
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