A mate asked me about CPH when I sent him a list of the ASX...

A mate asked me about CPH when I sent him a list of the ASX Cannabis Sector in May, I completely snubbed it for all the above reasons & more. It had nothing going for it but a spread out worldwide mess. My mate bought in anyway at 9c. I went with ZLD, doubled my money nearly & got out of it.

The game in my mind then started to change for CPH - when:
1. - They signed Jack Yu, got the Canadian Licence during lockdown - in which cannabis was declared essential in Canada.
2. - They restructured & streamlined all remaining debt.
3. - The Share Price halved again to $0.045

...So I nibbled in... And while watching my original investment dwindle toward a 30% loss I've since done a bit of reading & watched n listened to a few interviews.. About 5yrs worth.

So here's the thing.. I'm now buying whatever I can at these prices & here's quite literally just a few of the millions of reasons why I'm buying the pharm...
1. - Add up the quarter, look at the last.. Factor in the current situation. They'll break profit this quarter or next. How & 'why now' I hear you ask..!
2. - Colombian deal seems stupid doesn't it..? Yep, till you realise that the UN has limits on who can export how much hemp.. So assume demand goes past a restricted global supply in the next couple of years... who's in front...? Colombia can export 40.5 tonnesa year, higher than even the US who can only export around 34 tonnes.
3. - Demand! - Apart from the above mentioned "essential" label in Canada & parts of the US. The Mernova Retail market is now just the cream on top! ..Sales to Israel & the 3yr contract with TerrAscend are seeing Mernova position itself as a major global wholesaler with the capacity for full expansion.
4. - Similarly to the Colombian deal, I didn't really get the operations in Europe & why.. I do now & put simply, I see the overall genius in it. They basically monopolize some smaller markets over there now & have well established generic operations in many, which are growing & ARE successful. They're now ALSO having their retail cream placed on top as the world's regulations start to open up. Brazil, Africa, Middle East - all are placing orders now & while we humble Aussies don't always appreciate these markets, Creso has capitalised on that thinking from others in the sector. They are positioned truly globally - better than any.
5. - Coming Soon - NZ votes to legalise on September 19th, CPH is already positioned. NY will be passed in January most likely, along with 6-8 other US States next year.. Also don't rule out the possibility of a Federal change there sometime soon. Israel is probably going to be after NZ, in which CPH obviously already has a major foothold. This is just the tip of the RECREATIONAL iceberg.
6. - Medicinally - We don't have the time.. It's EVERYWHERE nearly.. Notably though, Lebanon just became the first Arab country to legalise medicinal use, Chinese Provinces are making their own changes, the UK is in debate on its next step & as of January, Australia will join the UK in over the counter sales of CBD products. Remember the bit about Colombia & the global supply..?? Keep in mind that "Israel & Germany" are CURRENTLY the world's biggest importers.
7. - The Animal market - well established now & Creso has actually established itself as one of the benchmarks in Europe & the Middle East.
8. - Get in now - the last round of financing has been done before 72 million options expire next month. They've been worthless for a while but still, no worries about being diluted by that at least.
9. - Yeah they owed $5mil last quarter, had assets worth $22mil.. Can borrow a further $17mil... ie, 4yrs of life support.. but I'm seeing a strong pulse.. Earnings already announced are adding up & I think they may have already gone past the cost of operations.. Any profits would go towards an immediate expansion of the Mernova facility I expect.. After that, all I see is profits & potential - the likes of which may be the closest I get to seeing Google at $1.50 ever again.
10. I believe in the product.. I believe that Mernova was the final jewel in the crown of what needed to be a complete circuit in order to work. I believe Jack Yu is the perfect bloke in that key Managing role. It's unfortunate for those who jumped in early that it's taken 5yrs to put together but timing is everything - as the current times are proving. I share all this information for you people in particular who might not want to miss the rocketship back to the moon, which is really where I believe this stock is now heading.

It was getting boring just putting it all on the Roosters anyway. ✌

Hopefully a Merry Christmas to you all later this year, I think we deserve it.