CNNX- It took four months, but I'm finally about to make it rain for us.
Not only am I certain this hedge fund manager would agree that this stock checks all of the boxes, but I'm sure it would even arouse the curiosity of Warren Buffett, who owns the largest stake in Coca-Cola, the premier example of our stock pick's business model in action; Ray Dalio, who owns shares in V.F. Corp, which has implemented the same strategy for 100 years, and, of course, T. Rowe Price Associates, one of the most successful asset management firms ever, which owns Disney shares and are well aware of the brilliance of licensing brand rights, in exchange for royalty, as Disney does.
So, I mailed the following letter to Buffett, Dalio, and T. Rowe Price, as well as to the fund manager, who posed the initial challenge to me:
CannAmerica Brands (CSE: CANA & US: CNNXF) is precisely the stock that is tailored for long-term investors, who understand the power of brands and durable competitive advantage.
As you can see, their brand is all about being a red-blooded American and enjoying your God-given liberties.
This is resonating with consumers in Maryland, Nevada, and Colorado, where licensers are already selling-out of gummies and sending royalty checks to CannAmerica Brands.
Judging by the revenue projection of the Colorado stream alone, the company is undervalued, as we see it.
And its products are snatched off the shelves in Nevada, where it is sold in 65 dispensaries as well.
After speaking with their founder, Dan Anglin, who is also the CEO, I can tell you that they are laser-focused on their newly-announced JV (Joint Venture) with Invictus MD Strategies, to launch the most important hemp product brand on the face of the earth.
Again, using advanced business practices, they are leveraging the fact that the Farm Bill was passed, on the Federal level, making it legal to ship WORLDWIDE!
Buffett can readily understand the efficiency of this model because the company is worth CAD$31M with only five employees. That's extremely lean and profitable.
The company is not even labeled as a cannabis business, so it doesn't have to comply with all the outdated and costly fees and taxes of cannabis businesses. It's a marketing and Intellectual Property business.
Dan Anglin and his management team identify brands that fit their existing umbrella of products and assess strategic acquisitions they could make to add to their portfolio, but they're not the manufacturers themselves. Instead, they retain the brand name, proprietary science behind the products and license the rights to the above, so that others could enjoy the trustworthiness of the brand and sell high volumes of retail products.
They focus on making sure consumers relate to the brand and the packaging, thus creating value in repeat business that knows CannAmerica stands for top-quality.
It's brilliant and highly lucrative, creating steady royalty income for CannAmerica (CSE: CANA & US: CNNXF).
Shares trade for CAD$0.64 in Canada and USD$0.461 in the U.S.
Edibles are the most profitable segment in the cannabis industry, as it stands, so with each passing day, CANA gets stronger and more established. Edibles are also the most competitive segment, so being first means that they really cracked the secret to reach consumers' taste buds.
CannAmerica could become the Coca-Cola of cannabis.
Right now, no one knows about it, though. This is a ground floor opportunity.
Consider shares of CannAmerica Brands Corp (CSE: CANA & US: CNNXF) NOW!
Best Regards,
Tom Beck
Research Partner, PortfolioWealthGlobal.com
Legal Notice:
This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. Portfolio Wealth Global llc has been compensated three hundred thousand u.s. dollars, as well as one hundred thousand canadian dollars, directly by cannamerica brands corp. We have also participated in a private placement and own shares of the company, which we will not sell during any email coverage. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.
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