I’ll never give stock advice but.....
This is a highly speculative space. There are a basket of stocks with similar stories that have gone up 1000% plus. Some have stabilized and others have retracted. Canada is passing legislation this month with regards to legalization. Only a few quality growers and suppliers will survive. Larger licensing deals involving beverage companies will drive the true market cap upside. Who gets them is anyone’s guess, but a few have risen to the top of the list. TLRY, CGC, ACBFF, and then of course the beverage companies that are going down the CBD infusion road. They will have the end-consumer sales. For me the huge upside is in the low market cap growers that have huge upside when tied to a licensing deal.
YGYI is slightly different in that she has her own distribution channels and is looking to become a grower. So essentially, there would be no need for a licensing deal or middle man if they can mass distribute and sell. However, will they be able to sell to the masses without a notable beverage label.
YGYI’s market cap is minuscule in comparison to the tickers mentioned above, which allows for greater upside potential. YGYI is also a MLM model company that carries a bit of a negative stigma. So you’ll need to draw your own conclusions. If YGYI can grow the bottom line significantly are generate positive earnings per share through sales of CBD infused products, then the upside is great. If the MLM model absorbs future earnings and offers those dollars up through compensation and promotion packages, then we lose. What YGYI has going for her vs some of the others, is that she already generates significant revenue through coffee and MLM sales. So YGYI is not a one trick pony but has the realistic possibility of riding the CBD wave into the future.
Aside from all that, YGYI has run-up significantly. You may want to let her breath here if you were looking to renter. Meaning she may scale back some. It’s all about momentum. Catch it at the top and you’re set up for pain.
FWIW, I’m holding here. I’ve been with YGYI far to long and am not going to bail during this opportunity. I may take some off the table soon however.
GLTY
