HGV 0.00% 5.4¢ hygrovest limited

MMJ vs MDC

  1. 169 Posts.
    lightbulb Created with Sketch. 4
    Hello greedy fellaz, I just wanted to express my opinion on these two doped companies that offer blockbuster returns in the future, with the hope to get other opinions to support/oppose my view. Unfortunately I haven't come across any posts that compare MMJ Phytotech and MDC Medlab Clinical which is why I post this message.

    So, as you all possibly know, Phytotech (now MMJ) is the first medical marijuana company in OZ, which concentrates its research on nasal and oral applications of medical marijuana - how sexy is that! I'll skip the company research and TA as it has been discussed in other posts (happy to provide my own research if you ask).
    On the long run I have faith in MMJ and yes I would expect the SP would double-up if not tripled within the coming years. As much as I want this to happen quickly, I honestly don't expect this to happen soon.
    Yes, the stock is very hot and the idea of medical cannabis is damn sexy, however this company is far from standing on its own feet financially (we'll see it very soon when they announce the company results). Therefore it is inevitable that the company will have to go back to retail or institutional investors very soon to raise more $$ to support drug trials as well as for growing medical-grade drugs -if the trials are successful-. Any investor with the basic minimum experience in biotech sector would know that these institutional investors just love to bleed the companies dry when they are asked to provide some financial support. Of course they are not going to buy MMJ shares from the current price, the SP will dramatically fall -given the liquidity of the stock- it will just plummet down. Unfortunately this cycle will repeat itself for a while until MMJ truly prove to be a leader in this medical marijuana industry and start generating some significant $$.

    For those who bought relatively cheap Phytotech shares from IPO -like myself- and who bothered to read the prospectus may recall this very honest associated-risks declaration from the company that said: "We expect to face intense competition, often from companies with greater resources and experience than we have", which brings me back to the other medical cannabis company known as Medlab Clinical P/L (ASX: MDC)

    MDC is a Sydney-based medical cannabis company and is getting ready to start a fierce competition against MDC. MDC share price is only $0.20 atm and the company has been recently granted medical cannabis licence from NSW state government. The good thing about MDC is that the company reports indicate that they are still cash-flow positive, which provides comfortable buffer for the company to pursue clinical trials with cannabis to treat pain. Nevertheless, the main reason that I have faith in MedLab is that the company doesn't only focus its efforts into Cannabis research to treat pain. They are strategically expanding their research into very important diseases like chronic kidney disease, depression and most importantly obesity. I am simply moved by the vision of MDC as they seem to align their research focus with broader strategic/economic goals compared Phytotech, but Phytotech started this race earlier. So...

    Well, I've got shares in both companies but personally I'm thinking to dilute my shares in MMJ Phytotech before the company results are announced and wait the SP to go down before I buy again while I'm thinking to go bullish on MDC -although it s a speculative buy- since the SP is so darn cheap at $0.20.

    I would be very pleased even grateful to hear any other thoughts on that.  

    Which company offers to get you its SP high?
 
watchlist Created with Sketch. Add HGV (ASX) to my watchlist
(20min delay)
Last
5.4¢
Change
0.000(0.00%)
Mkt cap ! $11.35M
Open High Low Value Volume
5.4¢ 5.4¢ 5.4¢ $6.897K 127.7K

Buyers (Bids)

No. Vol. Price($)
1 40614 5.4¢
 

Sellers (Offers)

Price($) Vol. No.
5.5¢ 49177 2
View Market Depth
Last trade - 16.10pm 31/10/2024 (20 minute delay) ?
HGV (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.