Cherubim Interests, Inc. (CHIT) Has Immense Market
Post# of 161
With its core real estate development and property management focus in the heart of the booming state of Texas, Cherubim Interests continues to benefit from what is argued by many analysts to be the nation’s best state economy. Even with slumping energy prices putting downward pressure on one of the state’s major sectors, the Texas economy continues to roar, posting 5.2% growth last year (more than double the national average), second only to North Dakota. However, unlike North Dakota, Texas is showing exceptional resilience in the face of lower lows in the energy market. This reflects the state’s sheer size, low unemployment and surprising economic diversity, with sectors like tech and transportation continuing to attract huge volumes of new residents.
With a business model that features targeting solutions like raw land acquisitions that have the potential for redevelopment, as well as a great deal of experience resident in the company’s management/directors when it comes to handling alternative, commercial, single and multifamily projects, CHIT is able to truly deliver on its broad-spectrum approach to real estate development. This broad-spectrum approach, which runs the gamut from initial discovery and due diligence, through construction and on into property management, has helped mature this relatively small company into what could eventually become one of the real estate industry’s major regional leaders.
CHIT’s emphasis on the so-called Texaplex region of Texas, the central area between the Dallas-Fort Worth Metroplex up north, Houston in the southeast and Austin/San Antonio in the southwest, which contains over 75 percent of the state’s population, makes a great deal of economic sense for the company. For instance, in Austin, which has very little exposure to the energy sector, data from the Federal Reserve Bank of Dallas’ beige book released back in July indicated that May job growth increased at an annual rate of 6.6%, with high-paying scientific and technical services jobs being noted in particular as a key driver of said growth.
Home to roughly 20 million or more people, the Texaplex is an ideal location for the company to apply its de-risked approach to the real estate market, and CHIT’s recent announcement that it is moving to acquire income-producing properties via the creation of a class of Convertible Preferred Stock has many analysts with their ear to the ground, eagerly awaiting the disclosure of the company’s initial target location. Many analysts are predicting Cherubim Interests will go with targets in the Texaplex region, selecting opportunities there from out of the wide array of locales the company has been vetting, in order to minimize outlays and maximize shareholder upside.
Adding to the de-risked nature of the company’s approach to real estate development is Cherubim’s second major growth vector, a leasable, proprietary controlled environment cultivation technology designed to give growers an edge in the burgeoning $2.7 billion legal cannabis market. Developed through the company’s BudCube Cultivation Systems USA subsidiary, the BudCube is an innovative, self-contained grow system for marijuana or any other type of plant, such as high-value organic produce, which strips away the substantial logistical barriers to entry that many growers face. Completely scalable, the BudCube system is perfect for either large-scale applications or micro grow ops, and CHIT is taking a very aggressive approach to the space, with plans to simply lease these turn-key cultivation systems to clients.
Armed with a real estate development capability, CHIT has the capacity to set up shop anywhere marijuana is made legal, and can really make a name for itself in this yet-nascent industry by helping growers avoid the high costs of building out new infrastructure. After all, why build when you can lease existing square footage and then just drop in hardware, simultaneously ensuring that key objectives are met, such as site security, high strain purity in the finished product and a lack of contamination from insects, molds or chemicals. The idea to strip the grow model down as far as the level of personal storage units is ingenious, putting an extreme amount of highly valuable flexibility into the hands of growers, even as more and more states continue to pass groundbreaking legislative reforms on cannabis production/consumption.
With a BudCube-based cultivation model, growers can be up and running, generating revenue from the first season’s crop, in the time it would otherwise take to set up new facilities, and get everything moved in. With an initial beta testing launch facility already in the offing up in Oregon, where recreational marijuana was recently approved ahead of schedule, BudCube could rapidly develop into a go-to controlled environment cultivation tech for the sector, and longer term this technology could provide a turn-key solution for controlled organic produce farming as well.
As states across the country continue to repeal marijuana prohibition put in place by what are now antiquated federal regulations, the opportunity for CHIT will only grow exponentially, and the company’s exceptional execution time should give it a decided edge in beating out competing solutions.
Learn more about Cherubim Interests by visiting www.cherubiminterests.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com