TGIF everyone. Before we get into it today, I just wanted to let everyone know we have an exciting new opportunity early next week, something I think all of you are going to be very excited about. Let's just say we are always looking for ways to help you make money in small stocks - no matter where that may be.
More on that next week. In the interim, the entire small cap space is in melt-up mode, again suggesting investors around the country are full willing to exercise some risk on the notion that we're not even close to being in the final growth stages of the U.S. economy.
Without going into all of the detail, inflation still remains tame, interest rates are still down around historical lows, and earnings just keep on growing for most of those well-known names that make up the S&P 500. And it's all showing in the charts.
The S&P 500 and the Russell 2000 both have once again made new all-time highs this week, and I'm not sure there's really any stopping it anytime soon. I mean what's going to stop this freight train from slowing down anytime soon?
There's a lot of traders out there licking their chops over what the VIX has done this week with volatility having picked up, but all I can say is I've seen this so many times before, only for the VIX to settle right back down and have those naysayers get pummeled over and over again.
I don't disagree stocks are due for a pretty good pause, but you can't just continue to sit on the sidelines waiting for it to happen. As a matter of fact, reports show investors who have missed this bull market for years are just now starting to get in. Maybe that will eventually trigger the pause, but even that's not for sure.
What we do know is there are opportunities out there everywhere, even if you just bought one of the small or micro-cap ETF's like IWM or IWC over the last several months - both are up about 19% since August!
Anyhow, it's been a fairly quiet week on the news front with many of our featured stocks, except for Namaste Technologies, Inc. (OTCBB: NXTTF) (CNSX: N.CN), which continues to flow news like nothing I've seen in a long time.
On Tuesday, Namaste announced it's participating as a lead order in a private placement offering by Atlas Growers Ltd., which is a late-stage applicant for an Access to Cannabis for Medical Purposes ("ACMPR") cultivation and sales license. In consideration of the investment, Atlas and Namaste's wholly owned subsidiary, Cannmart Inc. have entered in to a Supply Agreement, whereby Atlas agrees to guarantee supply to Cannmart by offering first right of refusal for a minimum of 20% of the net production of medical cannabis through Atlas. You can read the entire PR here: https://finance.yahoo.com/news/namaste-announces-participation-lead-order-123000963.html.
Then, just yesterday the company announced that it has signed a non-binding Letter of Intent ("LOI") with Israeli medical cannabis producer, Cannbit Ltd whereby the companies propose to enter into a share purchase agreement and/or a subscription agreement whereby Namaste would acquire an equity position of 5% in Cannbit through an investment to be made in a proportion to be determined and agreed by both parties. Cannbit will also offer Namaste a first right of refusal to purchase an additional 5% equity in shares at the same valuation. Here's a link to that entire PR as well: https://finance.yahoo.com/news/namaste-announces-5-equity-purchase-123000940.html.
The company's most important PR though, at least as far as I'm concerned, came out on Wednesday - when they reaffirmed their commitment to operations exclusively within medical or recreational cannabis legal jurisdictions.
Further to the Company's Nov 28, 2017 press release, and in lieu of the recent rescission of the Cole Memorandum by US Attorney General Jeff Sessions, Namaste's position on staying out of the US cannabis market remains firm. The Company would like to express very clearly that it does not hold any US assets nor does it intend on participating in any US operations or investments. Namaste is highly focused on the expansion of its Canadian operations through the launch of its online medical cannabis marketplace. Management will have no involvement in operations or investments in any illegal jurisdictions which present any risk to the Company and/or its shareholders.
Here's a link to the entire PR for you read: https://finance.yahoo.com/news/namaste-reaffirms-position-no-us-123000372.html.
We can't emphasize enough how strong our opinion is right now on just how much more legitimate Canadian cannabis stocks are over U.S. cannabis stocks. Obviously it's up to you in the end, but if it were up to me, I'd stay far away from any U.S. cannabis stocks except for those CBD plays like Gridiron BioNutrients, Inc. (GMVP) that are using the CBD compound without the psycho active THC compound.
At the end of the day, THC is still illegal at the Federal level here, while up in Canada it's a mad rush to full medical legalization anticipated at some point this year.