News Details – Smallcapnetwork
The Year of the Micro-Cap - More Namaste Success
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February 2, 2024

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PDT

Happy Hump Day everybody. The New Year is treating investors of all types very well so far. We've got stocks moving that haven't moved in quite a long time. We've also got stocks moving that have just kept on moving! The entire small and micro-cap world continues to pick up following years of lagging those large and mega caps everyone seems to be so in love with these days. As a matter of fact, I dug up a chart I haven't showed all of you in a very long time. The Russell 2000 is very well known for its tracking of what they consider to be the best 2000 small cap stocks out there, but there's actually a Russell Microcap Index that tracks even the smallest of smallest stocks out there. Look at how that index has performed since August of last year. It's about as parabolic as parabolic can get, and if there's one thing every Wall Street professional knows, it's when small stocks are going crazy like this, it usually always means the biggest of market bulls are in full control. No black swans surfacing yet, no concerns over the economy, the retail investing world hasn't piled in yet, and macro geopolitical concerns these days seem almost non-existent. What does that all spell? More and more new all-time highs. I think it's inevitable this year, because there isn't one thing I can find to suggest this multi-year bull market is even remotely close to coming to an end. Anything is possible, I just don't see it. As for some of our more recent newly featured stocks, Posera Ltd. (OTCBB: PRRSF) (PAY.TO) started off the year on a nice note with a pretty nice jump, but Namaste Technologies, Inc. (OTCBB: NXTTF) (CNSX: N.CN) has clearly been the big homerun. The latter is taking a bit of a breather right now, which I guess is to be expected, but news from the company just keeps on flowing - hence the name Namaste. Pretty appropriate if you ask me. On Monday, the company announced December 2017 total un-audited net revenue as reported by the Company (including shipping revenues and after discounts and re-funds) was C$1,795,032 representing a 182% year-on-year increase in comparison with December 2016. Relative to November sales which included Black Friday and Cyber Monday, December sales were very encouraging following the record-setting month of November. Management anticipates these year-on-year growth trends to continue as the Canadian market moves towards legalization, and through its aggressive strategy to expand sales into emerging markets.  While vaporizer and hardware sales remain strong, Namaste's marketing and SEO teams remain focused on improving conversion rates and increasing site traffic, as Namaste continues to build its impressive database of users. Here's a link to the entire PR, I suggest a good solid read of the entire piece: https://finance.yahoo.com/news/namaste-announces-december-2017-sales-220500568.html. There's a lot to chew on there. I must say though the revenue growth is most certainly very encouraging. If that wasn't enough, yesterday the company announced yet another services agreement. This time the services agreement is with 3955 Trading Inc. ("Cannamerx"), Canada's first online marketplace for the wholesale purchase of medical cannabis certified under the Access to Cannabis for Medical Purposes Regulations ("ACMPR"). Cannamerx is a fully automated, ACMPR-compliant forward auction trading platform for bulk cannabis and cannabis products in Canada. Developed in close collaboration with Canadian licensed producers, Cannamerx is designed to facilitate the trade of bulk cannabis and cannabis products between licensed producers throughout the country. Namaste believes that Cannamerx's platform will offer strategic benefits to the Company's wholly owned subsidiary, Cannmart Inc. ("Cannmart"), which is a late stage ACMPR applicant for a medical cannabis "sale-only" license. Through Cannmart, Namaste will create an online retail marketplace for medical cannabis that will offer the largest variety of products sourced from ACMPR licensed producers as well as international cultivators. Here's the direct link to that entire PR for your perusal: https://finance.yahoo.com/news/namaste-announces-services-agreement-cannamerx-123000472.html. I don't say this very often, but Namaste looks to have all of the makings of a big homerun someday. Not that it already hasn't been for those early speculators that took advantage of the stock when we started covering it quite some time ago, but when you look at the grand scheme of things when it comes to the entire cannabis space up in Canada this year and beyond, one would have to think Namaste is as well positioned as anyone. There's still a lot of speculation as to how the whole cannabis space is going to unfold here in the US, however, you definitely can't argue with what's already happening up in Canada. With the entire Country anticipating full medical legalization by the middle of this year, you've got a lot of smaller development stage companies looking to make it. Considering all of the recent announcements coming from Namaste, it definitely doesn't look like this particular micro-cap is still in the development stage. It looks like they've already made it happen, and are well on their way toward positioning themselves as a leader in the sector.