CLS Holdings (CLSH) Another Million Dollar Month - $1.15 Price Target by Canaccord

CLS Holdings (OTCQB: CLSH) just announced record sales of $1 million for the month of September alone. 

Price target of $1.15 per share by Canaccord Genuity,

Acquisition Target In Good Health receives Massachusetts State Approval for Final Recreation License

Miami, FL-- (InvestorsHub NewsWire – October 9, 2019) – EmergingGrowth.com, a leading independent small cap media portal with an extensive history of providing unparalleled content for the Emerging Growth markets and companies, reports on CLS Holdings USA, Inc. (OTCQB: CLSH).

This could be the biggest play in the Cannabis space in years.  See the full story on http://www.EmergingGrowth.com

 




CLSH may not be at these levels much longer.

See the Press Release and more on CLS Holdings, Inc. (OTCQB: CLSH) at EmergingGrowth.com
https://emerginggrowth.com/stock-report/?code=clsh



CLS Holdings (OTCQB: CLSH) (CLSH.CN) is a best of breed stock that combines all of the best attributes of cannabis stocks into one company. 

CLS Holdings (OTCQB: CLSH) just announced record sales of $1 million for the month of September alone.  – An Increase of 40.3% from the same period 2018.

See the full press release here.

Highlights from the PR:

 

  • Consolidated revenue from Oasis Cannabis and City Trees of $1.0 million compared to $0.7 million in September 2018, an increase of 40.3%.  Consolidated gross margin of 49.1% compared to 42.1% in September 2018.
 
  • A 90.8% increase in dispensary customers, from 10,294 (343 per day) in September 2018 to a record 19,637 (654 per day) in September 2019.

CLS Holdings (OTCQB: CLSH) also just received a C $1.50 – USD $1.15price target from Canaccord Genuity. See their full report here.

CLS Holdings (OTCQB: CLSH) just announced that In Good Health, a licensed medical dispensary, which the Company has the exclusive right to acquire in January 2020, was granted on Friday, September 13, 2019 a final license for recreational use at its current location in Brockton, MA.

In Good Health operates a large medical cannabis dispensary business consisting of over 25,000 registered patients, delivery to 2,800 patients per month and maintains an 18,000 square foot grow with capacity to produce 9,000 pounds of finished flower per year. At today’s retail price of $7,000 per pound this fully built out operation is capable of generating $60 million in annual revenue and gross profit of $ 35 million. 
  • $50 million acquisition which should throw off $20 million in EBITDA the first year.
  • $10 million in the Bank
  • Strong medical and retail marijuana franchise in both Massachusetts and Nevada.
  • With the advent of recreational sales in in Massachusetts they are at an inflection point where sales growth is going to compound higher. 

See the full report on CLS Holdings USA, Inc. on EmergingGrowth.com here.
See more news on CLS Holdings USA, Inc. on EmergingGrowth.com here.

CLSH’s management team has also fully aggregated one acquisition know as Oasis Cannabis.  This is one of the top dispensaries n Las Vegas and one glance at the interior retail space will tell the story with its clean professional look. 

They also have a decent balance sheet with $10 million in the bank at FYE 19 and the past quarterly reports have showed a positive trend that looks like they are turning the corner to profitability.  They also have plans to grow their operations capacity and have a retail brand known as City Trees which is a specially formulated THC distillate used in vape products, tinctures, and caplets.  This product is gaining traction in the market and is distributed in 47 dispensaries.  They are vertically integrated and in every way a seed to shelf company.  This means there are so many chances for cross promotion, which eventually finds its way to the bottom line.    

Many still see huge opportunity in cannabis but the industry itself has gone through a massive correction in its price to sales multiples in just the past 6 months.  This means investors are not as ready to pay for sales as they once were.  Leading in the contraction are the top players like Canopy Growth (NYSE: CGC), Tilray, Inc. (NASDAQ: TLRY), and CuraLeaf (OTC Pink: CURLF) which nearly halved their multiples.  The biggest standout was Cronos Group, Inc. (NASDAQ: CRON) which went from 255 down to 19.  This multiple contraction means that investors will need to see increasing revenue growth quarter over quarter to sustain the stock prices of these companies.

Summary
The cannabis sector clearly looks like it has put in a double bottom on a technical basis so now could be an opportune time to step into the sector and buy value.  The next stage of growth could very well be mergers and acquisitions, but it’s unlikely that the top brands backed by conglomerates will be creating mega brands.  Those businesses like Tilray, Inc. (NASDAQ: TLRY), Cronos Group, Inc. (NASDAQ: CRON), and Canopy Growth (NYSE: CGC) will start to work when these large brands start selling and launching CBD or THC infused products.  Mergers an acquisition plays could also begin to happen in the space and represent big upside for investors. 

The sweet spot in the sectors seems to be a company that can successfully complete acquisitions at fantastic valuations while increasing their revenues and profitability all at once. CLS Holdings USA, Inc. (OTCQB: CLSH) is a best of breed stock with all the characteristics an investor is looking for including a great price.  By all metrics the stock seems extremely undervalued and ready to run.  After the acquisition in 2020 revenues are expected to be $50 million.



CLSH may not be at these levels much longer.

See the Press Release and more on CLS Holdings, Inc. (OTCQB: CLSH) at EmergingGrowth.com
https://emerginggrowth.com/stock-report/?code=clsh



Other Companies in the news and featured on EmergingGrowth.com

Kraig Biocraft Laboratories, Inc.
Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) announced yesterday the Launch of Spider Silk Production Scale up.   The stock took a hard fall from .47 - .17 in July and has been in consolidation mode ever since despite the company’s 10 press releases since.  Kraig traded 2.1 million shares yesterday but has resistance at $.24.

Have a look at CLS Holdings, Inc. (OTCQB: CLSH) who just released record numbers.  This could be the most undervalued stock in the cannabis sector. Canaccord Genuity issued a $1.15 price target.

United Energy Corp.
Shares of stop sign company United Energy Corp. (OTC: UNRG) has traded approximately $55 million dollars’ worth of stock while moving up 12,000% over the past 28 trading sessions. There is no news, or filings reported on OTC Markets.  The toping tale from last Thursday indicates that this stock can drop far and hard, as it has already began to demonstrate.  

CLS Holdings, Inc. (OTCQB: CLSH), a fully reporting QB just hit record numbers and was issued a $1.15 price target from Canaccord Genuity. 


Clancy Systems International, Inc.
Shares of another stop sign company Clancy Systems International, Inc. (OTC: CLSI) shot up over 1,200% since filing its 8K on Sept. 25, 2019 which stated that they “will be filing its annual and quarterly reports as a voluntary filer.” A review of its period ending 6/30/19 Quarterly showed cash of $1 million, but no sales to speak of. CLSI peaked at .12, formed a large daily toping tale and looks like it can be on its way back down.

Have a look at CLS Holdings, Inc. (OTCQB: CLSH) with its over $1 million per month in sales and $10 million in the bank. 

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