Cannabis stock expert Michael Berger, president of Technical420.com, highlights one of the highest-q...
The University of Colorado Will Change the World Through Its Hemp Research Program
02/01/2016 8:40 am EST
Focus: CANNABIS INVESTMENTS
Not only has Colorado been at the forefront of the marijuana revolution, but it has also been a leader in industrial hemp research, so Michael Berger, of Technical420.com highlights several stocks levered to the trillion-dollar hemp industry.
Colorado has not only been at the forefront of the marijuana revolution through the state's efforts to legalize recreational marijuana, but Colorado is also a leader in industrial hemp research. The University of Colorado Boulder has scientists studying industrial hemp for research purposes. These efforts are being led by Nolan Kane, a geneticist who specializes in evolutionary biology.
Kane said, "Hemp produces fibers of unparalleled quality. It's a tremendously high biomass crop that replenishes the soil and doesn't require much in terms of inputs. We import tons and tons of hemp each year from China and even Canada, yet as a matter of federal policy, we can't legally grow it. There are places where farmers in the US can literally look across the Canadian border and see fields that are yielding huge profits."
Creating an Outline of a Cannabis Genome
Kane studies cannabis from a unique perspective. He probes the plant's DNA in an effort to map its genome. Although a highly fragmented outline of the cannabis genome already exists, it is scattered into roughly 60,000 pieces. Kane wants to assemble those fragments in the right order. Once the map is complete, geneticists will be able breed strains that contain higher levels of one of the plant's rare compounds with medically important properties.
Kane's efforts will leave a lasting impact on the cannabis industry. The work being conducted at his lab will be transform our understanding of the plant, as well as the understanding of ourselves. The results will not only transform the cannabis industry, but it could transform the medical, agricultural, and biofuel industry.
Hemp Can Change the World
In 1861, a farmer from Bologna manufactured a decorticator which gave famers the ability to process hemp in a cost effective manner. The decorticator was about to revolutionize the way hemp related products were made, and in 1938, the cover of a magazine called Popular Mechanics said, "Hemp the new billion-dollar product."
Since growing hemp has been illegal for almost a full century, researchers have been unable to learn all of the benefits associated with it. When Popular Mechanics said hemp was a billion-dollar product, they did not even know 20% of the uses associated with hemp. While it is impossible to quantify the newly discovered benefits of hemp, it is possible to determine that $1 billion in 1938 is a much a larger sum of money in 2016.
Stocks Levered to the Trillion-dollar Hemp Industry
Although Hemp, Inc. (HEMP) owns the only decorticator in the United States and should be considered, we have identified three hemp-related stocks that investors should monitor. These include Compass Diversified Holdings (CODI), FBEC Worldwide, Inc. (FBEC), and Naturally Splendid Enterprises Ltd. (NSP.V) (NSPDF).
In July 2015, Compass Diversified Holdings (CODI) acquired Fresh Hemp Foods after selling off its CamelBak subsidiary. During 2016, CODI has fallen less than 4% and the company offers investors a 9.4% dividend yield. CODI trades on the NYSE and will announce earnings in late February.
FBEC Worldwide, Inc. (FBEC) is a hemp-based beverage company that has developed and sold products derived from its intellectual property formulas. FBEC's portfolio of products include DuBe Shot, Ma' Brand CBD, and the WolfShot. Last week, FBEC received its first WolfShot delivery order after they secured its first national distributor. During the last month, FBEC has more than 40% and we are monitoring the $0.018-$0.02 support levels for a swing trade opportunity.
Naturally Splendid Enterprises (NSP.V) (NSPDF) develops, produces, commercializes, sells, and licenses hemp-derived foods, nutritional food enhancers, and related products in Canada. The company trades on the Canadian and US stock exchange under the symbols NSP.V and NSPDF, respectively. Although Naturally Splendid continues to execute, the market has rewarded only NSP.V shareholders (up more than 34% TTM). NSPDF has not traded since December 24 and shares are down more than 31% during the last three months (down more than 72% from its 52-week high). We expect NSPDF to move higher once investors recognize the potential in shares!
Michael Berger, Founder and President, Technical420.com