I think the changing of the guard at Verde Science is highly significant. Bringing in new blood, not just the newly hired Ken Berscht, but also Technical Board advisor Paul Pelosi and new Board member Luis Bobadilla...is important and an unqualified vote of confidence in the business proposition. I also know for a fact that there are at least 2 extremely important people working behind the scenes that have a lot of excellent ideas and are working tirelessly to right this ship. I know this because I speak with these two people from time to time.
I'm not saying that VRCI is a MUST BUY stock today or this week. But, I'm saying that fresh looks have given the new business model a seal of approval. The company remains highly speculative, but at 5c per share and with new people signing on, I feel comfortable saying that VRCI appears to be an interesting spec play with compelling upside vs. downside.
Compared to other medical marijuana companies, Verde has not seen its share price rise by 1,000% or 10,000% like some others, it's sitting near a 52-week low. The market cap is just $5.4 million, hardly an aggressive valuation. There is considerable, "option" value in Verde's stock at 5c. A lot of holders who wanted out have been able to exit over the past 2.5 months. For holders who have been sellers or have been considering selling, perhaps it's time to hold off and give the new Verde team another chance? I know that excitement and confidence within the company is growing.
If Verde can announce a number of clients willing to utilize its technology services, then revenues should start to flow this year. It would not take more than 3-5 clients to prove that Verde has very substantial prospects. So far, Verde has just 1. So, this remains an execution story. But, when I compare the risks of getting customers that are looking to vertically integrate their dispensaries to the risks facing the Canadian LP business model-- where a number of companies like Tweed (TWD) and Creative Edge (FITX) trade at market caps in the hundreds of millions, $5.4 million mcap Verde doesn't seem so bad.
Verde, Creative Edge and Tweed have very similar trailing 12-month revenues through the last completed quarter of 3/31/14. Each has revenues of approximately $0.00. So, I ask myself, which company is more likely to double/triple or be a multi-bagger in the next 6-12 months? The hundred million dollar market caps, that have already soared and are multiples above their respective 52-week lows, or Verde, near its 52-week low with a $5.4 million market cap?
