Branded Legacy Inc (BLEG)

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WHY I LOVE VATE FOR 2018

There are many reasons why I believe VATE will be one of the top performers on a % gain basis in the MJ/Hemp sector this year

Management is stellar

Coffee and Tea are enormous markets and hemp versions of both are just starting to become popular

ELEV8 HEMP and ZOE CBD are fantastic brands with well-developed products that possess mainstream potential

Future products will include canned hemp beverages -- iced hemp coffee and iced hemp tea

Beverage stocks typically outperform other subsectors in the MJ/Hemp sector

Everybody has an online presence these days, but they also operate 2 brick and mortar stores with a 3rd on the way by the end of this month, where they can showcase their products

The share structure is excellent

But most important of all is that 2018 will be the year that Hemp becomes legal

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WHY HEMP WILL BE LEGALIZED IN 2018

The political winds are currently shifting, as generic ballots are indicating that Congressional Republicans are trailing considerably behind Democrats in the 2018 polls, and Republicans will need to grab a big slice of the Independent vote that they are not currently winning in the polls, in order to maintain control over Congress

Independents often can be swung on social issues, and with each passing month, the legalization of marijuana -- particularly a state's right to legalize medical and recreational MJ without fear of federal interference -- is becoming a more important issue

If Republicans in Congress are not yet ready to back rescheduling of MJ this year (federal legalization of medical marijuana) primarily due to the big pharma lobby and social conservatism, they are still keenly aware that the majority of the electorate not only supports medical legalization to the tune of 90%, but is now also significantly in favor of legalizing recreational MJ

2018 is an election year, so the Republicans need to do something to win over these Independent pro-MJ voters and also turn out the MJ-loving Republican Libertarian vote, who may otherwise stay home on the couch in November instead of going to the polls

Legalizing hemp this summer is the answer to this political conundrum

The approval of Epidiolex (cannabis-derived CBD) by the FDA on 6/27/18 means that CBD will become unquestionably federally legal, because by law once the FDA approves a Schedule I Drug, it must be rescheduled to Schedule II or lower so it can be legally prescribed by a physician

If cannabis-derived CBD is legalized, and hemp is composed of predominantly CBD (by definition, cannot consider a plant "Hemp" unless it contains less than 0.3% THC), then hemp is in perfect position to be federally legalized as well

Think about it this way -- if a Republican-controlled Congress won't reschedule MJ in 2018, but they want to be viewed as pro-MJ before the 2018 elections because 60%-65% of the population believes MJ should be legalized for recreational purposes, then they can pass the federal legalization of hemp through THE 2017 HEMP INDUSTRIAL FARMING ACT, and steal the pro-cannabis mantle from the Democrats

Powerful Republicans McConnell and Goodlatte are the largest backers of the federal Hemp legalization bill and 2018 is the year where the timing is right for it to pass due to the legalization of cannabis-derived CBD in June, coupled with wanting to be on the right side of the cannabis issue before the 2018 elections -- right now the Democrats own the MJ issue, but the Republicans can steal it away by taking credit for legalizing hemp

https://www.congress.gov/bill/115th-congress/house-bill/3530

http://www.roanoke.com/opinion/editorials/editorial-how-republicans-came-to-love-hemp/article_b9116c36-a706-536e-9c0c-e9f0fa3cacee.html

Here is an excerpt from the above link:

Ultimately, though, the potential for a hemp industry is constrained by those federal drug laws. That’s what Goodlatte would change. Once a hemp skeptic, he’s now convinced there’s a real economic opportunity here. Just because hemp looks like marijuana is “not sufficient to stop a whole industry from going forward,” he says. Goodlatte, significantly, is chairman of the House Judiciary Committee. Presumably, his sponsorship of the Industrial Hemp Farming Act of 2017 might allay any concerns from law-and-order legislators. Goodlatte is not exactly some back-to-the-land hippie; he’s as mainstream a Republican as there is. If the ever-cautious Goodlatte is for hemp farming, the politics of hemp really have changed.

There’s even a Trumpian “America First” argument to be made for hemp. The United States imports upwards of $600 million worth of hemp-based products each year — so American law allows hemp products, it just doesn’t make it easy for American companies to make them. Our hemp laws have the same effect as one of those “bad trade deals” that Trump likes to complain about; it stifles job creation, especially in rural areas. “That didn’t sit well with me,” Goodlatte says. He thinks it’s possible Congress could pass his bill before the 2018 mid-terms.

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THE 2018 HEMP BEVERAGE SUPERMANIA IS COMING

Everybody will be looking to invest in hemp products once hemp is federally legalized later this Summer

But even before the day it is legalized, as we move through the Spring and draw closer to its legalization, media attention will continue to increase and many new investors will discover that hemp is investable

But similar to MJ stocks (aside from a handful of pharmaceutical plays on the Nasdaq), the only way to gain investment exposure to hemp is on the OTC

There are a huge number of MJ stocks -- over 250 in fact

Yet despite this abundance of cannabis stocks, whenever there is a mania, a large majority of these stocks go on tears, and a smaller minority experience epic runups

There are less than a dozen legitimate hemp stocks with products, and on closer examination, only a handful are even worthy of potential investment -- so due to the much smaller sample size, in a Hemp Mania the gains have the potential to be truly astronomical

I looked very closely at all of the hemp stocks last year, and VATE was the best one when taking into account predictive factors that determine the extent of % gains inside of a mania

The masses will pour into VATE the day after hemp is legalized, and for weeks and months afterwards -- I like to get in before the crowd

Check out my track record in the last mania we saw in the MJ sector during 2016

I strongly believe the SUPERMANIA in 2018 will be in Hemp/CBD beverages

VATE is the best stock in this subsector, for reasons I have outlined in many of my posts on this board, as well as the other one

As an aside, hemp and CBD stocks are technically cannabis stocks and therefore considered part of the MJ sector -- so they also participate in any MJ sector manias as well

The same cannot necessarily be said for MJ stocks during a Hemp mania -- we haven't had one yet so we don't know for sure, but it is certainly preferable to own a hemp stock during a hemp mania

Either way, I like the idea of owning a stock that has the potential to participate in both an MJ Mania and a Hemp Mania in 2018


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