GD Entertainment and Technology Inc (GDET)

[Daddy Rick]

GD Entertainment & Technology Inc. (OTCMKTS:GDET) is another stock that continues to look extremely cheap relative to the strong pace being set by the company in its core strategy, especially on the CBD side.

The company recently opened a store for its CBD-based products subsidiary, The Greenery. The store, which is located at Palisades Center in West Nyack, New York, the second-largest shopping mall in the New York metropolitan area and the eighth-largest in the United States, was opened three weeks in time for Black Friday and the holiday shopping season.

Now it is coming out and already talking about expansion in that space. Specifically, according to its most recent release, the company is entertaining a tangible offer to expand its “The Greenery” (TheGreeneryCo.com) CBD products physical retail exposure to a second, and larger, mall-based physical store location following positive branding and customer traffic data for its first mall-based physical store location.

“Following an extremely positive experience at the kiosk level at Palisades Center, we have been approached by management at that location and given a priority access option to expand to an additional and larger space in another similar mall,” noted Anil Idnani, CEO of GDET. “The vast bulk of the potential market for CBD products has no idea that they need to navigate to some backwater ecommerce portal to buy CBD-based products. Instead, they are walking around popular shopping areas, browsing for something new and interesting to try – and CBD is that new and interesting possibility. The only way capture any piece of that market is to be in front of them, out in the world.”

This is spectacular reasoning, and why we felt compelled to include the stock on this list.

One other dimension that differentiates GDET in this list is diversification: it is also a fully-active and operating blockchain play. There are many potential synergies between these segments. But there is also the advantage of diversification of revenue streams, which may provide some cover if there is a further capitulatory washout in the hemp, cannabis, and CBD complex before the next leg higher in the space gets fully underway.

We would also note that the company just announced a substantial reduction in its outstanding share count to lighten the load and send a shareholder-friendly signal to the market.

“If we move forward with this second location, it will be because we have run the numbers and the store will more than pay for itself,” continued Idnani. “At this point, we believe we can be selective and expand as the right opportunities come along. But we also believe that this approach to distribution is on target for this market because we gain an edge in brand exposure that will pay priceless dividends down the road as this marketplace continues to go mainstream over coming quarters.”

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