There’s no debating the wild ride the MJ industry has had since legalization for recreational use went live in 2014. Now two years later we are faced with a very critical time in the country’s history not only because many other states are adopting legalization initiatives but also because this is an election year.
Recreational and medical legalization is a major hot button item on the docket and for good reason. Not only is MJ being found to have very positive health benefits as a form of therapy for certain ailments BUT it’s a HUGE cash crop for “the tax man”.
With so much on the line this year for medical and recreational MJ, looking into this space EARLY may be incredibly important especially when we’ll be talking about it in 10 months when election season is at a fever pitch. Being that it’s the second week of January AND being that we’re coming off of huge momentum from earlier this week, what better way to keep the streak alive than with a pick in such an action packed space?
CLS Holdings USA, Inc. (symbol: CLSH)
CLS Holdings USA, Inc. (CLSH) focuses on extraction and conversion of cannabinoids. CLS stands for “Cannabis Life Sciences,” in recognition of the Company’s patent pending proprietary method of extracting various cannabinoids from the marijuana plant and converting them into a higher quality and quantity of products. The Company’s business model includes licensing operations, processing operations, processing facilities, sale of products, brand creation and consulting services.
Grow Your Own?
At the end of 2015, CLSH announced that an affiliate of its licensing partner, Picture Rock Holdings, a Colorado limited liability company, will operate a grow in Denver, Colorado for Picture Rock, and it received its certificate of occupancy for the grow on October 5, 2015. According to the company, CLSH had the end of November slated as the anticipated period that it would be planting at the grow…Why could this be perfect timing?
Picture Rock is expected to start processing its first harvest in the first quarter of 2016. Even if the approval of the transfer application is delayed for up to an additional 60 days, which would delay planting at the site, the first harvest is still expected to occur during the first quarter of 2016! When you talk about being at a “right place, right time” do you think that something like this could be a catalyst?
Another Breakout In The Making?
CLSH could be another breakout pick in the making. Looking at the 52 week chart, it’s starting to climb up from its 52 week low levels and compared to previous highs from the 4th quarter of last year, the upside could be a monster in my opinion!
I think technicals like the RSI and MACD suggest that CLSH could be starting to see some bullish momentum and may quickly begin to trigger breakout signals as early as tomorrow morning; especially if upward momentum is in play like it was with my last pick. In addition to this, volume has been picking up in a big way. In fact just 2 days ago CLSH saw one of its highest volume days in the last 5 months! To me that suggests that there could be huge awareness beginning to build around this new MJ play.
Industry Positioned For Growth?
Marijuana is now legal for medical use in just 23 of the 50 states, and will soon be legal for recreational use in several more states later this year…some as early as the end of this month! The long and short of it is that you can do as many searches you want and you’ll find that this cash crop could mean BIG BUSINESS not only for entrepreneurs but for states as well…and if “Uncle Sam” is happy, you may probably be able to bet that it will be a healthy climate for business owners.
California Department of Finance director Michael Cohen and legislative analyst Mac Taylor reported to the Attorney General Kamala Harris this December that the state stands to gain over $1 billion in uncaptured tax revenue if California legalizes cannabis for adults 21 and over in the November 2016 election! You can do more study on the space but consider that California is only ONE state…the numbers here are staggering and CLSH aims to capitalize on it in a big way!
Ready To Spark One Up Tomorrow Morning?
There’s no doubt that the industry potential could be HUGE heading into this election year and taking a close look early on could be very important in my opinion. CLSH has already demonstrated that it can consistently trade at much higher levels and this period of consolidation may be simply setting up for another breakout. The chart is on an uptrend as of right now and with volume picking up the way it has, I wouldn’t be surprised for a continuation pattern to start to develop.
Now CLSH is in front of us with indicators that could be suggesting much larger breakout potential may be on the horizon. Meanwhile, the company is slated to deliver its first crop, through its licensed partner affiliate during the 1st quarter of this year. For these reasons, CLSH is my pick for Thursday and if you so choose pull it up RIGHT NOW and be ready to trade bright and early at tomorrow’s opening bell, Thursday January 28, 2016!
Pursuant to an agreement between us and EMedia Advisors we were hired for a period beginning on 1/27/16 and ending on 1/28/16 to publicly disseminate information about (CLSH) including on the Website and other media including Facebook and Twitter. We are being paid $5,000 (CASH) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero shares of (CLSH), which we purchased in the open market. We plan to sell the “ZERO” shares of (CLSH) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (CLSH) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.