Cannabis Sativa Inc. (OTCMKTS:CBDS) is one of today’s hottest penny stocks, but with no real reason for the surge, the smart-money thing may be lock in those gains while you can and divert the proceeds to New Global Energy Inc. (OTCMKTS:NGEY)… which has something tangible going for it.
Congratulations to owners of Cannabis Sativa Inc. (OTCMKTS:CBDS). CBDS shares are up 43% today following a 280% pop yesterday, proving that the right penny stocks at the right time in the right situation can be like winning the lottery.
Problem: There’s nothing directly behind the advance from CBDS, leaving the stock vulnerable to a pullback once the market realizes Cannabis Sativa is little more than a premise. That’s in complete contrast with a similar company called New Global Energy Inc. (OTCMKTS:NGEY), that’s setting up a mini-empire in the moringa industry… a legal plant that can be utilized as a health food in a variety of ways. Better still, unlike Cannabis Sativa Inc., NGEY is already up and running.
Cannabis Sativa has an “ambition to brand and market the highest quality, legal cannabis products available today – and to innovate the industry-leading products of tomorrow. We foresee a future where the hi brand is synonymous with the highest quality and best value in the cannabis space; a vision we plan to support through aggressive marketing and strategic alliances.”
So what sparked a monster-sized rally from CBDS? Nothing the company did.
Most likely, the rally was kick-started by this report from Marijuana Business Daily suggesting the industry could be worth more than $40 billion by 2020. That was enough not just to send Cannabis Sativa shares higher, but all marijuana stocks higher.
Yet, it can’t be ignored that CBDS is a $34.9 million company that’s generated $12,460 worth of business, and lost $19.4 million in the process.
Like so many other penny stocks, the Cannabis Sativa is about the future – not the present. The rub is, it’s been about the future since 2012. The company, and most of its peers, never seem to make any actual progress towards the proverbial land despite the launch of new product after new product after new product. Calling a spade a spade, too many of these marijuana and cannabinoid companies were started because somebody wanted to turn a hobby into a business, with the proprietors not appreciating that fact that it’s tough to make a business viable.
That may or may not apply to Cannabis Sativa, but so far, it seems to apply.
That’s in sharp contrast to New Global Energy. But what is New Global Energy? First and foremost, it’s a play on moringa.
Moringa , or moringa oleifera to be specific, is a fast-growing tree that produces leaves and seed-pods which contain an amazing amount of nutritional value. On pound-for-pound basis, moringa has 25 times more iron than spinach, ten times more vitamin A than carrots, four times more protein than eggs, and boasts about a dozen more “X times more than” benefits. It’s also rich with antioxidants, minerals like calcium and magnesium, and more. In fact, if the human race had to pick just one plant-based food to survive, moringa would be an ideal choice.
Moringa isn’t just a source of nutrition though. It’s also got medicinal value, being linked to lower cholesterol, lowering of blood sugar, and anti-inflammatory activity.
As for how it’s used/served, it can be dried, turned into powder, made into tea, cooked fresh, and a bunch of other ways.
It’s quickly becoming a big hit within the growing health-minded market too. In October New Global Energy announced it was partnering up with International Sustainability Group — which makes AlgaeUp(tm) bars — to manufacture and distribute MoringaUP(tm) Protein Bars. Since then, the company announced it had met with representatives from aquaculture feed supplier EWOS, which was recently acquired by none other than Cargill. The purpose of the meeting was discuss several exploratory projects subsidiary Aqua Farming Tech is working on, including the use of moringa as part of a fish feed.
Where NGEY truly stands out among penny stocks, however, is that it’s already up and running, generating revenue, and primed for growth.
The new moringa crop acreage at its Mecca, California farm could annually produce as much as $9 million worth of moringa. The company’s website has already noted that the 6000 moringa trees its planted in Thermal, California plus another 10,000 trees at its Mecca farm plus 20 acres of moringa tree in addition to a possible extra 100 acres in Costa Rica could produce $15 million worth of moringa every year. Between the land the company’s already got plus the other land the company is looking to add, we can reasonably say we’re talking about annual sales in the teens to maybe into the 20’s of millions of dollars. And just last week, New Global Energy announced it was pairing up with the world’s largest moringa farm – in Leon, Nicaragua – to bring a whole new brand of moringa products to the market. The brand name will be Moringa Reserve, LLC, and it’s being established specifically by NGEY for the purpose of turning the farm’s massive 180-acre moringa supply into moringa-based products for U.S. consumers.
The other aspect of NGEY is its tilapia farm, which just began breeding season. New Global Energy is starting out with a record number of fish which should lead to a record-breaking a amount of tilapia production, which in turn means a record-breaking level of tilapia revenue.
Last week’s press release specifically said:
‘At Aqua Farming Tech, NGE’s wholly owned subsidiary, there are two spawning seasons in the Spring and Fall that produce one million tilapia each that we expect to be a total of two million annually. This month, the Fall season’s tilapia are coming to full maturity at approximately one pound each and are preparing to go to market at $3.60 per pound (delivered) or $3.00 per pound (picked up at the farm) with price increases expected.’
Crunching the numbers, this translates into annualized revenue of somewhere between $6 million and $7.2 million. What the press release didn’t say…
Investors and consumers would actually need to go back to Tuesday’s letter to shareholders to glean it,but New Global Energy’s tilapia is in the process of becoming a “Certified Organic” food, which will allow the company to market its fish as organic in addition to being non-GMO… a real marketing tool in the modern world of informed and concerned consumers. Non-GMO tilapia is selling for between $12 and $14 a pound in some markets, and the certification will open up a wide number of venues to which NGEY can serve as a supplier.
The point, however, is that NGEY is a real business driving real revenue with real product in hand selling to a real market. Cannabis Sativa is none of those things.
That’s not to say Cannabis Sativa and other penny stocks in and out of the marijuana space can’t someday justify their lofty valuations. It is to say though, from a risk-vs-reward perspective right now, NGEY has more to offer.
For more on New Global Energy, visit the company website here
Source: Small cap network
Source: Small Cap Network
