Longs on this stock (esp the whales), I have a challenge/assignment for you...we need to do some research on this Kush Processing and post back here to better understand the business need this solution solves, who else offers this and the full implications...
I don’t think the market fully grasps the potential of what this is and as such has not priced it in properly. That is the definition of an arbitrage opportunity for us. I am posting this on both INMG and TSMI (we are family!)
For TSMI, before his PR, it’s Market Cap was $160k, and this included pricing in that TSMI owned $100k (10m shares) worth of INMG. So the value of TSMI was $60k excluding INMG investment. Now post news it has Market Cap of approx $800k. So the market has assigned a present value of all future net cash flows from Kush that will go to TSMI of $640k (per textbook definition of stock price instantly including PV of all known public info, we can value the Kush opportunity).
Because TSMI valuation was effectively $0 ($60k to be exact) pre PR (see above)...we see the impact of the news more dramatically here. For INMG it’s Mkt Cap was around $3m pre and post news which tells me the Market doesn’t know how to value the company since it’s just starting out CannaNet so it is just “burying” this Kush valuation somewhere in the $3m.
The more we understand the potential of Kush the more we can determine if these two stocks are undervalued and buy before the uninformed market catches up. This research could make us thousands of dollars so worth the time.
We can do internet research of the whole issue, talk to Investor Relations, call Kush and inquire, call a dispensary and ask them how they might use the product and if it meets a need etc.
We may find that both companies are wildly undervalued and choose to buy more. I highly doubt we will find that either is overvalued from this research but we need to do the work. Plus if you find that INMG is way undervalued it means the TSMI investment of 10m shares is undervalued and thus TSMI is undervalued
