Howdy all and a very happy Holiday Season to all of you! It's been a minute since our last edition, but be rest assured we've been paying attention to everything that's been going on out there in small cap land. It's been a crazy last several days for many small penny stocks out there.
The big winner though has been Namaste Technologies, Inc. (OTCBB: NXTTF) (CNSX: N.CN), a stock we covered just over a year ago around $.20 cents, and then picked up coverage again late last month when it was trading around a $1. Low and behold though, the stock went ballistic yesterday, finding its way to just shy of $3.50 per share!!
Depending on when you got into it, that's anywhere from about a 1600% return in just over a year to about a 250% return in just the last month. And it's not as if the move hasn't been warranted. Just in the last several days, Namaste has made some significant announcements.
Just last Friday Namaste announced its wholly owned subsidiary Cannmart Inc. ("Cannmart") has signed a Fulfilment Services Agreement (the "Agreement") with Greenlane Canada ("Greenlane") whereby Greenlane will provide exclusive order fulfilment and warranty services for Namaste's Canadian websites. Under the terms of the Agreement, Greenlane will fulfill orders for all products set forth in Greenlane's product offering as well as products which are marketed and sold under brands controlled by Namaste and other third-party products as specified by Namaste. The Agreement represents a strategic decision to further align the Company with the industry's leading business-to-business distributor, while Namaste will benefit through a significant reduction of inventory and operational expenses, bringing the company closer to profitability. Since inception, Namaste has maintained a strong working relationship with Greenlane and believes that this Agreement is accretive in nature. In addition, it is believed this Agreement will set the framework for Namaste to collaborate with Greenlane on future opportunities in areas related to the distribution of cannabis packaging products and pre-filled cartridges for medical cannabis, to be sold in Canada through Namaste's wholly owned subsidiary Cannmart.
Here's a link to the rest of the PR for details regarding the agreement: https://finance.yahoo.com/news/namaste-signs-fulfillment-agreement-greenlane-120000964.html.
Then, again just yesterday the company announced it has signed a Letter of Intent ("LOI") with BRLEV AGRICULTURAL CROPS LTD. ("BRLEV"), through its wholly owned subsidiary, Cannmart Inc. ("CannMart"), whereby BRLEV will supply CannMart with high quality medical cannabis, to be imported by CannMart from Israel and offered in the Company's online marketplace. BRLEV is Israel's largest licensed producer of medical cannabis, with over 40 years of experience in commercial agricultural production and export. BRLEV will work with Namaste to export medical cannabis to the Canadian market, which will fall under Canada's Access to Cannabis for Medical Purposes Regulations ("ACMPR") guidelines. The LOI and the proposed medical cannabis supply agreement ("Supply Agreement") highlight Namaste's intentions of becoming Canada's leading online retailer for medical cannabis products, by focusing on importation of high quality medical cannabis from industry-leading countries like Israel. Namaste believes that the demand for imported cannabis and the opportunity it presents has been largely overlooked. This deal solidifies Namaste's commitment in seeking the best cannabis products in global markets and offering them to Canadian cannabis users.
Here's a direct link to that PR in its entirety: https://finance.yahoo.com/news/namaste-announces-wholesale-supply-loi-143512813.html.
This is tremendous news when so many other cannabis stocks out there continue to bump and grind along with no real substance to them. It's no wonder the stock has gone crazy over the last few days. I think this may only be the beginning though, since Namaste is among the very few cannabis plays out there that has a massive user base already in place for potential cannabis purchases next year, as a result of the company's ongoing success in the vaping business.
What I'm saying here is there are cannabis stocks who deserve to be trading where they're trading, and those that don't. In my very humble opinion, I do think Namaste Technologies, Inc. (OTCBB: NXTTF) (CNSX: N.CN) is one of those that deserves to be where it is, and possibly far beyond that over the next few years.
One stock we haven't talked about much lately that hit the news wires just this morning is SPYR, Inc. (OTCBB: SPYR), a holding company with a wholly owned subsidiary in the mobile game & app development and publishing industry, and a company we continue to believe has some real potential within the future of the mobile gaming and eSports space - an industry expected to grow bigger than the NFL, MLB and NBA over the next several years.
From a trader's point of view SPYR has been a monster winner at times, and a big loser at times, but the company continues to grind it out on the development front, and if today's news is any real insight to the future of the company and eSports, it's probably something investors should take notice of.
Over in Asia, gamers and eSports fans are already filling sports and entertainment venues in the tens of thousands to watch various eSports teams compete in player vs. player video game competitions, and now team vs. team competitions. We've already published before that many big league sports executives here in the U.S. are already positioning themselves by buying rights to teams in their own respective cities.
Even colleges are already getting into the future of eSports. Just last month, Florida Southern College in Lakeland, Florida, announced it will field a League of Legends team starting in the spring of 2018. It is the first reported varsity eSports team in Florida and first National Association of Collegiate Esports program from the state.
I know this may sound farfetched for many of you out there, but trust me when I say eSports is going to be HUGE. Maybe now you'll understand the significance of SPYR's news this morning. And by the way, for those of you shareholders of record regarding the previously announced stock dividend months ago, the company also provided an update today.
The company announced it has entered into an agreement with the Unitas Gaming eSports organization to engage in weekly live streams of Pocket Starships gameplay to its fanbase.
The Unitas Gaming eSports team is a championship team made up of players from all over Latin America (unitas.gg). They are the current World of Warcraft Latin American champions and competed in the World of Warcraft World Championships at BlizzCon 2017. SPYR recently began sponsoring Unitas and now Unitas will live stream competitive Pocket Starships play to its fans on a regular basis.
Two teams of 3 Unitas players will soon start to livestream Pocket Starships, including 3v3 scrimmage play. The Unitas partnership will create some exciting content and matches, with the teams live streaming at least four days per week for three-hour periods, over the next year.
SPYR's Vice President of Strategic Partnerships, Mike Turner, stated, "We have had a great relationship with Unitas, including sponsoring them at the World of Warcraft World Championships at Blizzcon. They are a growing force in the eSports scene, and as we continue to forge our own path towards being a competitor in the eSports industry with our flagship game, Pocket Starships, we are looking forward to their contribution to the Pocket Starships community as they start to stream on a regular basis. It's great to see passionate players, doing what they love, and sharing it with an active online community. We are looking forward to working with Unitas over the next year to engage our competitive fan base, and continually deliver what our players need to succeed in eSports."
Unitas Gaming Founding Partner & CEO, Raul Max Villacorta, stated, "We are very pleased to be joining forces with SPYR. We are looking forward to sharing our eSports knowledge and promoting this movement that has been booming in the past few years. Our main focus is the gaming community and making sure every region is considered and represented in the global eSports scene. SPYR's current and future games will help bring this vision to life."
Finally, regarding the previously announced stock dividend (see press releases dated June 1, 2017 and September 27, 2017), the Company is diligently working to finalize the execution of this dividend in a way that will maximize the value for shareholders by taking advantage of opportunities that are synergistic with other opportunities on which the Company will be executing in the near term. Accordingly, in the first quarter of 2018, the Company will announce a new dividend distribution date.
Link to entire PR: https://finance.yahoo.com/news/champion-esports-team-sponsored-spyr-133200170.html
Now you may have already done your diligence on eSports and its potential, but if you haven't I suggest you do. As it stands today, there's really not that many publicly traded stocks out there with direct exposure to the space, so I do think SPYR is one worth speculating on.
You've got the big players like Tencent Holdings Limited (TCEHY), Activision Blizzard, Inc. (ATVI) and Electronic Arts Inc. (EA) already making their big moves, but in the penny stock world SPYR is the only one I think has a shot at making it.
Of course nothing is ever for certain when it comes to penny stocks, but I still think SPYR has the potential to be a nice winner again someday.