With the impending Canadian legalization just around the corner, there has been a flood of cannabis companies created trying to cash in on this new market.
Once company that we like that has a compelling story is Invictus MD Strategies Corp (TSXV: IMH). This junior producer has already outperformed the overall index and is in the process of maximizing production to deal with the impending and substantial supply shortage of legal cannabis anticipated for July of 2018.
They assets are up 20x since last year alone and Invictus provides an excellent opportunity to profit from this booming industry.
Invictus’ goal is to grow; facilities, cultivation, production, and profit. They have lofty goals to become “Canada’s Cannabis Company” with the largest land package in Canada.
Invictus has focused on gaining a first-mover advantage in the growing cannabis industry, and has already experienced significant growth in recent quarters.
But the best part is that it is not priced as a growth stock despite being one. In fact, Invictus is fairly priced with a price-to-book ratio of 1.1, significantly cheaper than the industry average of 13.
Further investigation into Invictus’ balance sheet produces more reassurance, like having no long-term debt and a current ratio of 58, which indicates excellent liquidity.
Invictus also has a managerial team with a wealth of experience and a history of successful start-ups.
To date, management has bought and sold three ventures for a total return on investment of 277%.
This is proof they are able to provide value and profitability while achieving their long-term goals.
Invictus has three production ventures across Canada, two of which are currently under expansion. Invictus expects the production expansions to be completed by June, 2018, just in time for legalization.
Capacity is funded to 15,333Kg, and there’s still room for debt financing.
Invictus is currently and confidently awaiting permitting approval for two of its production expansions. Approval will provide upward momentum for its share price in the near term.
This could account for the recent increase in trading volume above twice its three-month average.
Investors are starting to clue into the value that Invictus offers and now is an excellent time to enter, especially with production around the corner.
Don’t let this exciting opportunity go up in smoke.