The end of cannabis prohibition is providing the perfect opportunity for some unspectacular companies to make a miraculous transition, and generate incredible profits along the way.

Sometimes a company just can’t get it right.

Some of those are companies with infrastructure and expertise that, under the right guidance, could transform into a goldmine.

Whether it’s the CEO, a board that doesn’t understand accountability, or simply selling into an unprofitable market, some business ventures persist for decades with nothing to show for its efforts.

The stock price languishes, executives get replaced, and lawsuits get thrown around.

Changing fortunes can require dramatic moves, so it’s only fitting that the burgeoning cannabis industry is providing the perfect opportunity for many long-struggling companies.

But transitions take time, and most firms still have a lot to prove before warranting an investment.

Still, my team and I are keeping a close eye on those opportunities because there can be big payouts from a turnaround story. In fact, we’ve identified many potential top cannabis companies in our NICILytics database, and we revisit the companies frequently to see which ones warrant a rating change.

And one company we’ve recently uncovered is making some really big moves that could suddenly change its fortunes, enriching investors before you know it…

Not One for Chasing Fads

Now, I’m not talking about a penny stock scam that involves a business consistently changing how it operates to capitalize on every new investment fad.

You know the type.

Companies that were once “dot-com” wannabes, moved on to selling sub-prime mortgages, owned uranium mines for a while, switched to being all about the “blockchain,” and now grow and sell cannabis.

All the while, the CEOs and executives of those companies were getting rich by selling shares to unwitting investors who were motivated to buy shares thanks to paid stock promoters. What’s really terrible is that those executives knew their companies were junk, but they still felt comfortable taking advantage of the average retail investor.

But it’s not all bad.

Some of the companies I’m watching run honest operations, just not successful ones. However, a pivot to cannabis finally puts trustworthy executives in the right place at the right time.

And Neptune Wellness Solutions Inc. (Nasdaq: NEPT) could finally be in that perfect spot for a transition.

Struggling for a Payoff

When my team and I first looked at Neptune late last year, we saw a company that had been in business for 20 years, and yet, still couldn’t manage to build a profitable business.

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The company has sold nutraceutical oils sourced from marine animals, such as cod and krill. Its core competency was extraction – mostly as a third-party supplier – with little in the way of its own branded products.

Over the last five years, it has managed to survive off the C$100 million it raised in equity offerings and proceeds from the sale of intellectual property and inventory. Profitable years have been few and far between.

But in 2018, the company began tooling its extraction expertise and resources into producing cannabinoid extracts, which built upon the companies 20 years of oil extraction and nutraceutical product development experience.

Progress was halting at first, but now, momentum is building.

So far in 2019, Neptune’s stock price has skyrocketed.

And after a major leadership change and a series of deals with big players in the cannabis industry, the stock price could be sent into the stratosphere.

A Streak of Big Wins

The board has just put Michael Cammarata at the helm, replacing the CEO of the past four years.

Michael has been an innovator in the wellness industry for years. He co-founded Schmidt’s Naturals, which was ultimately sold to Unilever, and led the brand’s exponential growth. Cammarata will be spearheading several acquisitions and developments already underway from Hamilton’s tenure.

Neptune recently received amendments from Health Canada to expand its production capacity to 200,000 kg, which completes Phase 2 of its ethanol-based extraction installation.

It is also expanding production into the United States through a definitive agreement to acquire the assets of Sugarleaf Labs, a hemp processor, for US$18 million. That deal should close on or before July 31.

And as for customers, for over a year, it has had in place a multi-year agreement with Canopy Growth Corp. (NYSE: CGC) to supplement Canopy’s extraction, refinement, and extract products formulation capacity. Neptune also recently also won contracts with Tilray Inc. (Nasdaq: TLRY) and The Green Organic Dutchman (TSX: TGOD, OTC: TGODF). The total of all agreements signed to date amount to over 500,000 kilograms of cannabis product, much of which will be turned into CBD extracts to meet skyrocketing demand.

These are promising signs, and the transition may have created the conditions that, in my experience, lead to an explosive turnaround.

Jenn Larry, President of the CBD Strategy Group

We’re taking a good, hard look at the company. Provided all the elements are indeed in place, we’ll upgrade the rating in what we like to call the “Millionaire’s Vault.” Perhaps, it may even be worth a recommendation to subscribers of the Cannabis Investor’s Report.

And finally, if you remember from yesterday, I promised you a special report from NICI Advisory Board Member and President of the CBD Strategy Group, Jenn Larry. Since we talked about how big of a moneymaker extraction is becoming, this report couldn’t have come at a better time. You can also access it by clicking on the image above. 

Jenn moderated a panel about extraction, and she provides some great insight. I really appreciate her allowing us to share this report with all of our members.

Enjoy your weekend, and be on the lookout for my article tomorrow.

Greg Miller

Executive Director, National Institute for Cannabis Investor’s

P.S. With the normalization of hemp CBD products, many major retailers are getting in on the action. In fact, not only did major drugstore chains CVS, Walgreens, and Rite Aid all jump on the CBD bandwagon, luxury retailers like Neiman Marcus and Barneys New York plan to as well. Simon Property Group, the nation’s largest mall owner, has even announced its partnership with a cannabis goods maker to open around 100 kiosks in malls around the country. With announcements like these popping up, it’s not hard to believe that experts predict CBD sales to grow 3,622% by 2022. And with growth like that, these two CBD companies could deliver 1,000% gains or more to investors who move now. To find out more, go here now.


Comments

11 responses to “Classic Turnaround Play Means Major Cannabis Profits”

  1. Morning Greg how are you? Thank you for this information but quite frankly with all due respect the only thing I am interested in right about now is when I can expect to stop loosing 1000.00 dollars everyday from the portfolio picks we have. Even on the days when we might by accident have an up day for the industry they pale in comparison to the losses. Regardless of what ever new company you may recommend for us to purchase there is no new money for me to use to purchase any of them. Now that might not be a lot a money to you or your colleagues but is is substantial to me. Now you and NICI have said your organization exists so that your students /members can make money in the short term as well as long term. Well you know that has not been happening and personally I would like to see NICI focus on really helping us change that please!!!! At either rate I hope you have a good day and much success to all of us in the future!!! Hopefully these comments won’t be censored and not printed notice I didn’t mentioned any particular company wouldn’t want to give out any information for people to see who have not paid for it. That’s one of the reason that was given to me for my comments not being posted. Hopefully I didn’t violate any rules this morning.

    • I agree with you on that, let’s focus on what we currently are invested in unless you see a home run tyoe investment

  2. All I know we are constantly losing money everyday. Another week another month of the same bad results!!! Hell I was doing a lot better before I joined NICI and instead of helping me to the next level your recommendations lately are taking me to the bottom level. It has been 31/2 months of bad results to say it kindly and moving toward 4 months!!! In the 2 plus years I have been trading in the Cannabis industry I have never witnessed this consistently down fall for such a long period of time. What is going on? How far do we have to go into the summer before we start seeing the remarkable change you speak of? Or is that something your just telling us to pacify us? After all Greg you also say in the same breath nobody really knows what the market is going to do let alone when it’s going to do it. So which one is it? Because I have a feeling the summer is here and going to be gone and a lot of us are going to be out of a whole lot of money!!! When that happens I am here to tell you I am not going to be a happy person!!! I hope you have a great day Greg and I hope the things you speculate on will eventually start be true. Preferably more sooner than later!!! Much success to all of us in the !!!

  3. I note in the article about Neptune that they use “ethanol-based” extraction. Isn’t CO-2 extraction considered to be the preferred/optimal extraction method? Don’t Ethanol (and other chemical) based extraction processes come with cautions/downsides that would argue against investment in a company that uses this approach?

  4. Hi Greg,
    I have only to heartily endorse Jeff Brown’s comments. I hold a number of the recommended cannabis stocks in my portfolio. The main holding is CGC. I did get in a little late on that but was up more 100% for a while. Now it’s understandably under pressure and has fallen off quite dramatically. Many of the other portfolio recommendations are sucking mud. What do you think will be a catalyst to turn these cannabis stocks around and is it a good time to: simply hang in, or is it a good time to bail out? All this talk of being a Marijuana Millionaire is wearing a bit thin and I don’t appreciate all the invitations for BETTER RECOMMENDATIONS if I upgrade at great expense. (which I can’t afford to do since I’m already losing.) I really would appreciate a ‘ no BS’ review of the existing portfolio picks.
    Thanks for all the information but I , and obviously others, need a serious update and a bit less of what might be coming down the pike for us to lose on.
    Doug.

  5. I was doing better before I joined NICI in Oct 18. I am received an email today asking me to call the VIP hotline for a deal to sign up for everything. My avg loss with NICI picks is 30-40% with some at 50% or more. NICI should be reviewing technical analysis, chart patterns and telling us the best time to buy. Many of us bought in when the prices were inflated and they are now coming back down to reality. I am considering disputing the charge for a refund. At those losses, I cannot make money. It will be difficult to even get back to even. To put it in perspective

    Small losses are easier to recover from, compared with big drops.

    Initial loss 8%, 8.7% gain needed to recover.
    Initial loss 25%, 33% gain needed to recover.
    Initial loss 30%, 43% gain needed to recover.
    Initial Loss 40%, 67% gain needed to recover.
    Initial loss 50%, 100% gain needed to recover.

    If you are at a 50% loss you need the stock price to double just to break even. Meanwhile, Greg and all of his buddies are buying tons of shares at the lowest prices. NICI does not provide you with any unique info and there are plenty of sites vetting the same companies and posting them for free.

    Greg, Unless you plan on giving us these additional services for free, please do not keep badgering us with emails. Some answers would be great. Explanation on how we are going to recover quickly is necessary. You know better than anyone that the psychology and anxiety that ensues when you see you a paper loss of thousands of dollars is not good. I trusted NICI, bought all of the stocks in the portfolio as well as some of the 5’s. Even the IPO’s haven’t done much. There are investment and trading groups out there that would gladly take my money too. The difference is, their portfolios are making money, yours is not.

  6. So I’m thinking that NICI is long on all of the recommended positions and we should hold on, right? However, why didn’t you give us a stop loss position on each of the recommendations? The normal way to invest (even if you are long), is to have a stop loss (lets say a loss of 20-25%) and then re-enter the stock at a later time when and if it is turning around. Since none of this was communicated to us, it really appears to me that someone is being very lazy and just making recommendations. You need not only to let us know when to buy, but also when to get out and re-enter the stock at another time. Someone at NICI needs to do more than just recommend a stock, even if we are long on the position. I am shocked at how this operation has been run.

  7. Certainly I understand everyone’s frustration. I feel it too! However, when I joined NICI a few months ago the deal was to commit no more than I could afford for 3 YEARS. In fact, with a little more money coming in, I have chosen this downturn to pick up more stock in the best performing company’s so far.
    I’m even tempted to pick up some more Tilray at $23 less than I paid for the first share I bought. LOL, Call me crazy but I don’t bet more than I can afford to lose and I’m still having fun! We’re up so far today. Success to everybody!!!

  8. I don’t understand that all the money cannabis companys are making Im losing money, I have put my trust in NICI, I consider myself poor, put all my savings in your company and are about to lose it all

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