Opinions
Thomas George
Rainmaker Mining Corp.
NDVA-X
COMMENT
May 14, 2018
$0.710
Stock price when the opinion was issued
agriculture
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BUY
He owns this one and says it is doing well at developing new products like edibles. They did a deal with a US chocolate manufacturer and now their new product is the top seller in Ontario. They are working on salt and sugar infused products, which could open up baking products. He thinks there is lots of other opportunities here.
agriculture
BUY
It is one he quite likes in his Cannabis portfolio. They are the number one selling chocolate infused with THC. They can also infuse it into sugar for baking. The company has been ramping up as of late. Later this year we should see cash flow positive from this company and then it will hit the radar screen of many investors.
agriculture
WATCH
They're under the radar, but their products are top notch. Managers are superb. progress has taken time, but managers have built a good business in edibles with their chocolates. Then, they diversified into gummies, which is a huge product in the States and is growing here. This will be the year for NDVA with strong revenue and some profits. They have carry-overs in tax losses, so they can generate real earnings.
agriculture
WATCH
Likes management. It took them a long while to obtain all regulator approvals. They make cannabis edibles and those are now the number-one seller. Share prices recently pulled back after a management cease-trade because the financial audit is delayed, partly due to Covid. The audit should be out fairly soon which he is eager to see. Revenues look promising and he hopes they enter positive EBITDA. The market either wakes up to this stock or it gets taken over, because the valuation is so cheap.
agriculture
BUY
An old past pick. It's been frustratingly lately and doesn't know why. Everything is firing on all cylinders--there's more purchasing from all provinces, input costs for THC and CBD continue to drop. They're using up their older distillate at higher prices, but next their lower-priced distillate will get absorbed into the price and will increase their margins. The cannabis sector, after a slump, is on the cusp of rising again. Maybe NDVA will post positive earnings this year, which is rare for cannabis in Canada.
agriculture
BUY
Canadian cannabis market is divided between big guys, which don't seem to do anything, and the small guys that are growing fast. But both get tarred with the same brush. NDVA numbers were outstanding. Thinks they'll be taken out. Impressed with operations. Only a matter of time before stock really performs.
agriculture
BUY
Certainly puzzling. They have partnerships with 2 US companies that gives them the right to market and sell their products in Canada. Top 10 companies in terms of sales. Chance that Canopy will buy out the company or do a partnership. Fantastic job with the edible market with 50% marketshare and growing revenues.
agriculture
At a high level he finds it interesting that the M&A activity is happening. He does not follow this one. He feels there is a bubble in the market.