Big Profits Ahead for Investors Dear Reader, Thi
Post# of 103018
Dear Reader,
This entire industry is going to deliver a decade-plus worth of gains for us. The end of the cannabis (marijuana) prohibition in the United States, Canada, and Europe is happening! No doubt, the birth of a mega-industry is rising up – one that will stand shoulder to shoulder with other large multi-hundred billion dollar powerhouses.
Walmart, Walgreens, and Kroger are all preparing for new products that will put them at the center of a roaring boom! I want us to enter this sector prudently, entering into the largest market for the sector and a product that has a competitive advantage.
Our top recommendation is Lifestyle Delivery Systems (CSE: LDS & US: LDSYF). Less than 1% of cannabis companies are actually making a real profit.
Lifestyle Delivery Systems will be generating a profit in a few months, with EBITDA of $10 million in 2017 and $150 million by the end of 2018.
The company is currently being valued at only $33 million. That’s about 3x its expected 2017 revenues, when the sector as a whole trades for about 21x. It’s one of the only public companies with full exposure to California, with an economy and population that dwarfs the size of any other market that is open to legalized marijuana.
It’s the 6th-largest economy in the world, with a population larger than the entire nation of Canada, eh. In yesterday’s email, we revealed that most of these cannabis plays are simply all promotion and revenues, with no profits!
I don’t want us chasing these stocks; I want us to make a sizable profit from partnering with a real company. Here is how we can do just that: by partnering with Dr. John Sanderson, a research scientist who was formerly the head of patents at Johnson & Johnson and who has been issued multiple patents in the delivery of medicine.
Brad Eckenweiler, CEO, brought the most profitable marijuana company in the world public, taking it from $1,200 per month to $4 million a month under his tenure!
James Pakulis, President, has 3 decades of experience in building successful early-stage companies, including in the cannabis space, which is just now opening up for recreational use.
Let’s talk product. Lifestyle Delivery Systems has multiple streams of revenue.
The one I think is going to be a big disruptor to the space is a product that is 80 to 90% cheaper than their competitors, and it’s a better, more consistent product, called CannaStrips. The CannaStrips, similar to a Listerine breath strip, is an easy solution delivery system. You can watch a quick video here to fully see how it works, but it’s very simple: put one on your tongue and allow it to dissolve in your mouth.
You don’t have to eat anything, smoke, use a vaping pipe, or anything like that.
They have a patented enzyme that breaks down the saliva barrier in the mouth (which prevents substances in your mouth from going directly into your bloodstream) to allow for nearly instant entry of THC or CBDs into the blood.
It’s odorless, quick, and can be taken anywhere marijuana is legal. There’s no stress on the liver, sugary calories, or an upset stomach.
The best part is that it sells for $2 or less and costs 17 cents to make.
Imagine a customer walking into a Walgreens or Walmart. You have the $10 products that you can eat or smoke, or a $2 product that dissolves quickly in your mouth and is made to perfection with a higher consistency.
Smoking, by the way, peaks in your bloodstream in about 3 to 10 minutes. Consuming cannabis is longer-lasting and peaks in 1 to 3 hours. In addition to the CannaStrips, the company has permits to cultivate, extract, produce, and manufacture marijuana in California.
Keep in mind that not all companies can do business across state lines, so they have to set up shop in each state in order to do business. It’s why California is so important to us: its population is 8x larger than Colorado.
This highlights one of the keys as to why LDS is the best marijuana company out there. They saw all of this coming and are the ONLY company to have lined up ALL PERMITS in California.
In addition to the amazing potential of the CannaStrips to disrupt the market, LDS also has a big sales vertical from their license to extract oil from marijuana. The marijuana oil, full of THC, is what’s contained in the cartridges you see in vape pens.
Right now, there are 1,200 extraction companies for marijuana. Only 6 of them have permits, and LDS is one of them! Their phone is ringing off the hook from vape pen companies begging to buy the oil they extract.
Now, here is where it gets interesting, and where good management makes all the difference. Having been in the marijuana business for years, the LDS CEO saw this coming. Right now, the best vape cartridge filling machine can pack 25,000 cartridges per day at a cost of $2-$3/cartridge.
LDS has sourced a new machine that has the capacity to pack 60,000 cartridges per hour at a cost of less than one dollar per cartridge. Based on the initial demand they are seeing, they can blow all other vape cartridge suppliers out of the water and do over $3 million per month in revenues from this.
It’s important for every investor to understand that Lifestyle Delivery Systems’ disruptive technology is proprietary.
The company controls the ingredients and supply chain. They own their own processing plant and are the only company to be fully licensed in Adelanto, California. Compared to its peer group, based on 2017 revenues, the company’s fair market value is $4.47. I am not about to make a price prediction or forecast, but I do see this is the best company to own in the space right now.
Today, on the Canadian Securities Exchange, it trades for CAD$0.68, under LDS. On the OTCQB, it trades for $0.51.
Consider buying shares of Lifestyle Delivery Systems, and continue to accumulate shares under $1.00.
In our opinion, this $33 million market cap company could be valued at a billion dollars or higher by 2019. Fundamentally, it’s the best play for us to enter into today. The sector itself is like buying into the tech bubble in 1992, 8 years before it reached its peak and 5 years before it hit a manic phase.
This is going to be a real winning space for us to dramatically grow our net worths. ***Always remember that I don’t know what your personal financial situation is or your appetite for the volatility seen in micro-cap companies. As with all speculative investments, never invest what you can’t afford to lose.
Even though the overwhelming trend is behind us, we can never forget that we are dealing with the rollback of long-standing laws and thinking.
We’re going to be regularly updating you on Lifestyle Delivery Systems, and consider this to be a core stock suggestion for 2017.
Best Regards,
Daniel Ameduri
President, FutureMoneyTrends.com
Legal Notice: This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.
Never base any decision off of our emails. FutureMoneyTrends.com stock profiles are intended to be stock ideas, NOT recommendations.