Our Cannabis – Hemp Industry Stock Recommendation: EDXC
EDXC – ENDEXX “Strong Buy”
Is EDXC a stock ready to move over .75 Per Share By Mid-Year of 2021?
Endexx Corporation (EDXC) has seemingly pivoted to a multifaceted cannabis stock focused in hemp derived CBD. Under their flagship brand, CBD Unlimited
CBD Unlimited produces various products ranging from topicals, pet products, capsules, and oils products, which all aim at therapeutic health benefits for the whole family and pets.
CBD Unlimited is known for it’s well researched, high quality products. The science behind the products are backed with six years of research and development to perfect the accurate dosage. These studies also helped to understand the delivery of absorption suitable for each serving. This is probably why the brand has consistently strong reviews and strong customer retention.
Recently, many things have taken part in EDXC, which are expected to raise sales and economic growth. The company’s technicals behind the charts show us all the strong indicators of an increased upwards trend towards a PPS of .28 by the end of 2020 and as much as .75 by third-quarter, 2021.
Here is why:
Analyzing the industry, as more states and federal laws have continued legalizing the sale of marijuana and useful hemp products such as CBD. Many investors find it worth investing in these companies that have a strong foundation, such as EDXC. The company has continued to grow in terms of sales and cash flow with growth from 2019 till now of 25% increased gross profits quarterly. Based on the recent 10Q report and analyzing material disclosures, it is apparent the company has reinvested those profits as well as investment from outside sources into growth, acquisitions and expansion.
Recent EDXC material disclosures and press releases display a fundamental story of both national and international expansion. CBD Unlimited can currently be found in over 6,000 retail outlets as well as online. Recent developments found in the company’s disclosure shows new distribution agreements that would expand the company from its current sales of just close to 3.5 million by the end of 2020 to over 22 million by 2021. Based on the new distribution agreements without significant increase in advertising cost, the profit margins loom large enough to justify significant forward-looking PE for all shareholders.
We also noticed a new EDXC focus on it’s Phytobites brand division in the Pet and Equine Health sector. That was after a recent article reported that California, New Mexico, and New York are considering using medical cannabis for pets. CBD Unlimited is a leader and early adopter of scientific based products for pet health derived from cannabis. This expertise and attention to quality helps increase the sales of its products, which, in return, increases the value of the EDXC shares.
A research study in 2018 reported that in America only, people spent more than $33 billion on food and treats for their pets. Also, they estimated that, in the United States, pet treat sales reached more than $6.7 billion the following year. That was a 31% rise within a year. So, the market is expected to grow at 2.8% annually up to 2023. Nielsen reported that hemp-based pet products would be representing the hemp CBD sales between 3% – 5% in the United States. And these are significant signs for CBD Unlimited. Despite the Pet CBD market being saturated with tinctures, CBD Unlimited has an advantage for desirable pet chews where its products will compete.
The best news is that EDXC, Go Green Global, has been approved and received two provisional licenses in Jamaica. The information is no longer a rumor and was reported through this press release: https://www.globenewswire.com/news-release/2020/10/14/2108011/0/en/Endexx-s-International-Division-Go-Green-Global-Announces-Provisional-Approval-for-Two-Licenses-in-Jamaica.html?fbclid=IwAR3cnkajfOHXY58bvAN_ig0oE4_mA1jmsXIlGXoLo1T7Szq0uHisixyYaNg.
EDXC received its approval of the two provisional licenses from the Cannabis Licensing Authority (CLA) in Jamaica. The first license, “Herb House License,” is a retail license that allowed the company to open and run a store in Ocho Rios. It is located in Taj Mahal Retail Mall. The mall is located where Tourist ships and Cruise liners arrive. The area also experiences high foot traffic. This store is expected to meet the increased demand for cannabis products.
The second license, on the other hand, is “Tier-2,” which will allow the cultivation and distribution of marijuana in Jamaica. As the company aims at increasing its international footprint after receiving the two approvals, that shows that EDXC surpassed significant hurdles during these challenging times. And considering these milestones, the company will generate significant revenues at the Jamaican market’s early stages. That will help increase the stock price of this company as it continues to explore the high market demand for cannabis products.
Another excellent opportunity for EDXC to help its stock rise is after entering into a joint venture agreement in which EDXC announces a new product launch with a major world class celebrity. In the joint venture, CBD Unlimited under EDXC will own 70% of the agreement entity as reported through this press release:https://finance.yahoo.com/news/endexx-subsidiary-cbd-unlimited-inc-123000481.html. It also has to appoint three from the five directors of the company. Also, it will manage the Joint Venture with this world class celebrity, by conducting the Joint Venture’s business processes that involve: sourcing, manufacturing, producing, marketing, selling, and distributing branded products among other related activities.
Strictly speaking of fundamentals, companies with a smaller float of outstanding shares that received the kind of notoriety from a world-class celebrity can bring in a lot of buying pressure from new shareholders resulting in increased PPS.
The Bottom Line Recommendation? BUY EDXC
- The company is still small and relatively unknown with a manageable float of stock. Once the company launches with a world-class celebrity, the buying pressure can have an immediate increased PPS effect.
- The company is moving into international cannabis through their Jamaican licenses. This has the potential for huge future revenue in the billion dollar industry of international cannabis sales.
- Recently, the company has applied to trade on the OTCQB Venture Market. This is a higher tier Market that includes fully audited financials and higher transparency. This adds credibility and more market makers to the company’s portfolio allowing for larger trading volume. This will also create greater exposure for the company stock to new shareholders.
After a full review of the company’s technical charts, fundamental, material disclosures and recent press releases, it’s our belief that Endexx, EDXC, is a stock to buy now while it’s completely undervalued and before the Cannabis Industry accelerates again and big news breaks.
Peter Beaumont is a senior reporter on the Guardian’s Global Development desk. He has reported extensively from conflict zones including Africa, the Balkans and the Middle East and is the author of The Secret Life of War: Journeys Through Modern Conflict. Email: peter@thehearus.com
