KushCo also expects significant growth from its vape business. With Canada set to wave the green flag on derivative products within the next couple of months, and the company no longer eating tariff costs, KushCo’s vape business could be a serious moneymaker in the years to come.
And this is really just the beginning. Charlotte’s Web announced plans to more than double its hemp harvest to cover 862 acres, up from 300 acres in 2018. With industrial hemp production and hemp-derived CBD now fully legal in the U.S., the red carpet has been rolled out for Charlotte’s Web and its high-margin product portfolio.
At far less than two times next year’s sales projections, KushCo looks like a major bargain in the cannabis space.
Image source: Getty Images.
What I see in KushCo is a company that’s at the center of three niche trends. It’s a key player in the packaging and branding solutions space, with more than 5,000 growers in 25 countries as clients. KushCo ensures that its clients remain compliant with federal, state, and local laws, and should see a steady uptick in demand as legalizations continue around the world.
While these are, indeed, bad-news events, nothing is particularly worrisome about any of these adverse events. The accounting error had no impact on revenue, cash on hand, or cash flows, so simple governance changes will resolve the issue. Likewise, lower gross margin was primarily the result of tariffs being implemented on its Chinese-based vape product imports. With the company now passing along these higher costs to consumers, rather than KushCo eating this higher cost, margins will improve.
I’m a firm believer that every marijuana stock investor should diversify their portfolio with an ancillary player (i.e., a company that isn’t directly involved in touching the cannabis plant). I can think of no better buy in the ancillary space than KushCo Holdings (OTC:KSHB) , the other pot stock I own.
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It all starts with the soil.
The legal cannabis industry is one of the fastest-growing industries in the United States. The total cannabis marketplace in the United States was $4.7 billion in 2016 and is expected to grow to more than $13.3 billion by 2020. One study noted that California alone could comprise 25% of the expected $25 billion of national cannabis sales by 2025.
When plants are harvested and products are sold, we send the balance of the plant back to compost and restart the cycle.
We are in the process of obtaining qualification from the United States Securities and Exchange Commission to be able to sell you stock in our company in the near future. By submitting the form above, we’ll keep you posted on our progress, and you’ll be among the first to know when shares in Golden Seed, Inc. are available for purchase. You will also get exclusive perks for our shareholders, like merchandise, discounts, invitations to events, and more.
Unlike most growers, we are not content to buy clones from a nursery and plant whatever is available. We are constantly conducting pheno hunts and cross-breeding and back-breeding dozens of genetic strains to grow plants that are disease resistant, fast-growing, yield the most, and that look, smell, and taste better.
Our small-batch signature products are niche blends that complement our staple strains. Golden Seed also feels so good because it is rich in entourage effects. The crystals dusting in most cannabis buds contain compounds known as terpenoids and cannabinoids. They have synergistic effects—working together in ways we believe THC or CBD alone cannot.
Our first product line to market was a success.