We’re in the business of working with, introducing and buying into small and micro cap stocks for many reasons. Chief among them, is the potential some offer for life-changing payouts. We love taking big swings when the bases are loaded and the count is full. While there is very real potential to take some heavy losses in this space, and we most certainly have throughout our career, the wins have dramatically out-shined the losses…
Searching out Unicorns on the TSX Venture
Few TSX Venture or CSE (Canadian Securities Exchange) stocks ever trade above $3 per share with a market capitalization in the hundreds of millions. You might say these types of plays are the ‘unicorns’ of Canada’s small-cap space.
In late 2017 and early 2018 two past clients, and featured companies of ours, traded above that most noteworthy level. Both of these companies, from a market capitalization standpoint, increased more than 1,000% in value from our introduction to our subscribers to their peak valuation.
Cannabix Technologies | Capitalizing on the Marijuana Boom
The first company is Cannabix Technologies (BLO: CSE) – our inaugural marijuana-related featured company. Cannabix is developing tools for law enforcement and the workplace to detect THC in breath.
With recreational marijuana now legal in California, essentially doubling the size of that industry overnight, and Canadian legalization anticipated this July, law enforcement agencies are rushing to deal with the reality of impaired or ‘drugged’ driving. Our belief Cannabix Technologies (formerly West Point Resources) was uniquely positioned to potentially serve this need comes through in our report published and distributed to all of our subscribers on July 13th, 2014…
Its shares had last traded for CAD$0.26 at that time.
This past week, on January 4, 2018, Cannabix hit a new all-time high of CAD$3.68. More than 6 million shares exchanged hands that day. More than 40 million shares of the company have traded since December 14th, making it one of, if not the most, liquid stocks on the CSE in recent weeks.
Excerpt from our introductory report on Cannabix:
“Despite the speculative nature, we strongly believe in the mission behind the Cannabix Marijuana Breathalyzer, both from a business perspective as well as a road safety initiative.
In an article about the Cannabix Marijuana Breathalyzer, released June 19, 2014, Paul Best of Reason.com reported:
“If the Cannabix is all that it is cracked up to be and is actually capable of determining whether someone is too high to drive, then the pot-loving community should support its implementation in law enforcement…”
Add it to the ’10-Bagger Club’
Cannabix’s shares increased roughly 1,300% from the price they last traded at when we introduced it in the summer of 2014 to their peak price hit this past Thursday… remarkable!
Perhaps what’s most impressive is the company’s market cap now exceeds CAD$290 million as its shares closed trading this past week at CAD$3.27.
Congratulations to every one of our subscribers who benefited from this epic run!
The Graphite Gainer | Mason Graphite
Next up is Mason Graphite (LLG: TSXV), a previous client and featured company we introduced to our subscribers on October 2nd, 2013.
Note: despite the graphite craze that gripped the TSX Venture a few years ago, this was the only graphite-focused play we had the confidence to put our name behind.
When we introduced Mason in Q4 of 2013, it had last traded for CAD$0.45, giving it a market cap of roughly CAD$30 million…
On November 1, 2017, Mason’s stock hit an all-time high of CAD$3.15 – roughly a 600% increase from the price it had last traded for when we introduced it (click here for our report).
Mason’s shares closed trading this past week at CAD$2.60.
Perhaps what’s most impressive about this story is the market cap appreciation. Mason’s market cap currently sits around CAD$350 million – more than 10X what it was when we introduced it just over four years ago. What’s more, this past Thursday the company announced it has closed a CAD$45 million bought deal private placement offering…
Mason reported in its press release this week,
“The Company issued, on a bought deal basis, a total of 18,750,000 common shares (the “Shares”) at a price of $2.40 per Share (the “Offering”).
The Offering was underwritten by a syndicate led by National Bank Financial Inc., and including Paradigm Capital Inc., Cormark Securities Inc., BMO Nesbitt Burns Inc., Canaccord Genuity Corp., Eight Capital and TD Securities Inc. (collectively, the “Underwriters”).
As previously disclosed, the net proceeds of the Offering will be used for development and construction expenses related to the Company’s Lac Guéret graphite mine and Baie-Comeau, Québec concentrator plant project (the “Project”), the majority of which the Company expects to incur over the next twelve months, and for general corporate purposes. Development and construction expenses represent a portion of the Project’s estimated $200 million capital expenditure budget.”
Mason Graphite announced on September 11, 2017 that its “ownership stands at 25% of NanoXplore,” a graphene company and manufacturer and supplier of high volume graphene powder for use in industrial markets. NanoXplore has roughly a CAD$170 million market cap.
With approximately 35 institutional shareholders, strong local support with a government funded access road being built now solely for Mason Graphite, the company is moving its Lac Guéret graphite project located in northeastern Quebec towards construction.
Congratulations to the Mason Graphite team and all of our subscribers who benefited from the company’s ability to execute on its ambitious business plan thus far.
Click here to read our original report titled, Mason Graphite (LLG: TSXV) is our New Featured Company.
In April of 2016, during oil’s vicious bear market, perhaps the worst in a generation, we featured a junior oil and gas company targeting depressed producing oil assets in Oklahoma. That company was Jericho Oil (JCO:TSXV), and we saw it as somewhat of a bottom fishing opportunity. At the time of our introduction, Jericho had a market cap of approximately CAD$30.3 million and had last traded for CAD$0.48 per share…
On Friday, Jericho’s stock hit a new high of CAD$0.94 (roughly a 95% increase from our introduction); what’s more, its market cap has tripled to approximately CAD$101 million. It closed trading this past week at CAD$0.86.
Jericho was, we envisioned, a way to play the depressed oil market while staying true to our small cap roots. And that bet paid off. As oil has risen in value of late, so has Jericho’s stock price. Congrats to those who took advantage of this opportunity. We know it took guts to step into the oil market when the masses seemed to be looking for the exits…
“Throughout history, fortunes have been made buying distressed assets when few had the liquidity, or the courage, to step in and buy. Cloaked in desperation, the current oil sector has created a generational opportunity for bargain hunters with cash.
By acquiring producing wells that may profit at low oil prices ($35-$40 WTI), the potential upside for investors becomes clear…
This is exactly what our new Featured Oil Company has built its business strategy on: low cost, proven production in an infrastructure-rich region.”
We look forward to an exciting 2018 and anticipate bringing forward a handful of investment opportunities in the first half of the year.
Liquidity on the TSX Venture is as high as it has been since 2012. The exchange has broken out since December and is averaging roughly 160 million shares traded per day thus far in January.
*Click here to read TSX Venture Records Highest Single Volume Trading Day Since April 2011 to get a comprehensive explanation of the rising liquidity.
For the next couple months our travel schedule is booked solid in order to continue to bring you, our valued subscriber, leading coverage on the small and micro cap markets in Canada.
All the best with your investments,
P.S. If you’re not already a member of our newsletter and you invest in TSX Venture stocks, what are you waiting for? Subscribe today. Only our best content will land in your inbox.
Disclosure, Risks Involved and Information on Forward Looking Statements:
Please read carefully before proceeding.
THIS IS NOT INVESTMENT ADVICE. All statements in this report are to be checked and verified by the reader. This report may contain technical or other inaccuracies, omissions, or typographical errors, for which Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, assumes no responsibility. We cannot warrant the information contained in this report to be exhaustive, complete or sufficient.
Important: Our disclosure for this report applies to the date this report was released to our subscribers (January 7, 2018) and posted on our website. This disclaimer will never be updated, even if we buy or sell shares of any of the mentioned companies in this report.
In all cases, interested parties should conduct their own investigation and analysis of Cannabix Technologies Inc., Mason Graphite Inc., Jericho Oil Corporation, their assets and the information provided in this report. Prospective investors not willing and able to risk a loss of their entire invested capital must not consider purchasing shares of any of the mentioned companies in this report. They are highly risky investments.
All statements in this report, other than statements of historical fact, should be considered forward-looking statements. These statements relate to future events or future performance.
Forward-looking statements are often, but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “budget”, “scheduled”, and similar expressions. Much of this report is comprised of statements of projection. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
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We Are Biased:
Most companies featured in the Pinnacle Digest newsletter, and on our website, are, or were, paying clients of ours (including Cannabix Technologies Inc., Mason Graphite Inc. and Jericho Oil Corporation – details in this disclaimer). In many cases, we own shares in the companies we feature and advertise for. For those reasons, please be aware that we are extremely biased in regards to the companies we write about and feature in our newsletter and on our website.
Because we are paid by public companies to provide our online advertising and marketing services, and we (Maximus Strategic Consulting Inc. and our employees) may own shares in the companies mentioned in our newsletter and web reports, you must recognize the inherent conflict of interest involved that may influence our perspective on these companies; this is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor and a registered broker-dealer before investing in any securities mentioned in our reports.
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Disclosure of Compensation:
Set forth below is our disclosure of compensation received from all of the companies mentioned in this report as of January 7, 2018:
Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, has been paid CAD$75,000 plus gst to provide online advertisement coverage for Cannabix Technologies Inc. for a twelve-month online marketing agreement. The company (Cannabix Technologies Inc.) has paid for this coverage. The coverage includes, but is not limited to, the creation and distribution of reports authored by PinnacleDigest.com about Cannabix Technologies Inc. as well as display advertisements and news distribution about the company on our website and in our newsletter. We (Maximus Strategic Consulting Inc.) have bought and sold shares of Cannabix Technologies Inc. in the past, and we currently do not own shares of the company. Please recognize that we benefit from price and trading volume increases in Cannabix Technologies Inc. Please recognize that we are extremely biased when it comes to Cannabix Technologies Inc.
Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, was paid CAD$50,000 plus gst to provide online advertisement coverage for Mason Graphite Inc. for a pre-paid six month online marketing agreement. The company (Mason Graphite Inc.) paid for this coverage. The coverage included, but was not limited to, the creation and distribution of reports authored by PinnacleDigest.com about Mason Graphite Inc., as well as display advertisements and news distribution about the company on our website and in our newsletter. We (Maximus Strategic Consulting Inc.) have bought and sold shares of Mason Graphite Inc. in the past, and we currently do not own shares of the company. Please recognize that we benefit from price and trading volume increases in Mason Graphite Inc. Please recognize that we are extremely biased when it comes to Mason Graphite Inc.
Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, has been paid CAD$50,000 plus gst to provide online advertisement coverage for Jericho Oil Corporation for a pre-paid six month online marketing agreement. The company (Jericho Oil Corporation) has paid for this coverage. The coverage includes, but is not limited to, the creation and distribution of reports authored by PinnacleDigest.com about Jericho Oil Corporation, as well as display advertisements and news distribution about the company on our website and in our newsletter. We (Maximus Strategic Consulting Inc., owner of PinnacleDigest.com) have bought and sold shares of Jericho Oil Corporation in the past, and we currently do not own shares of the company. Please recognize that we benefit from price and trading volume increases in Jericho Oil Corporation. Please recognize that we are extremely biased when it comes to Jericho Oil Corporation.
PinnacleDigest.com’s past performance is not indicative of future results and should not be used as a reason to purchase any security mentioned in this report, on our website or in future Pinnacle Digest newsletters.
The past successes of members of any of the companies’ management teams, board members, insiders and advisory teams mentioned in this report are not indicative of future results for any of the companies.
The past performance of any of the mentioned stocks in this report are not indicative of future stock price performance.
Maximus Strategic Consulting Inc. and PinnacleDigest.com (including its employees and consultants) are not chartered business valuators; the methods used by business valuators often cannot justify any trading price for most junior stock exchange listed companies. Cannabix Technologies Inc., Mason Graphite Inc. and Jericho Oil Corporation are junior stock exchange listed companies.
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Trading in the securities of Cannabix Technologies Inc., Mason Graphite Inc. and Jericho Oil Corporation should be considered highly speculative.