Although the last month has been volatile for the cannabis sector, we are favorable on the direction the industry is heading.
We believe the cannabis industry is in the early innings of a major growth cycle and expect any positive developments in the United States (US) to serve as a catalyst for the entire industry. Based on this theory, we have been focused on identifying North American cannabis companies which have upside potential.
One of the companies that we have identified is The B.C Bud Co. (CSE: BCBC) (OTC: BCBCF) which is highly focused on Canada’s burgeoning cannabis industry. During the last year, the company reported several key milestones and we believe the management team is executing on a calculated growth strategy.
A core reason for our bullish view on The B.C. Bud Co. is related to the strength of the management team. The company is led by a team that has decades of experience in the cannabis sector and this played an important role in the development of the business model.
While most Canadian cannabis companies are closing production facilities and reducing capacity, The BC Bud Co. is focused on entering new markets and capturing market share in strategic regions of Canada. By not making the mistakes that most Canadian cannabis companies have made, the company has been able to stabilize its balance sheet and has more than enough capital to execute on previously announced growth initiatives.
Led by a Management Team Which Has Skin in the Game
When we analyze a company, the management team is the first factor that we look into. In regard to The BC Bud Co., the management team owns more than 70% of the shares outstanding and we find this to be a very bullish indicator.
Insider ownership plays a major role in our view of the company and we believe the market is not assigning enough value to this trait of the business. The amount of stock owned by the BC Bud Co’s management team increases our conviction level for the business and we want our readers to be aware of this aspect of the story.
Based on The BC Bud Co’s market capitalization, we believe the business is massively undervalued and want our readers to be aware of this. We are of the opinion that the company has significant potential catalysts for growth and believe the market is discounting the growth prospects that are associated with it.
During the last few years, the amount of unsold cannabis being destroyed by Canadian Licensed Producers (LPs) has significantly increased. Some analysts have attributed the trend to a lack of quality product on the market and we believe The BC Bud Co’s focus on selling premium products has protected the business from the cannabis destruction trend in Canada.
One thing that makes The BC Bud Co. unique is its strategy by contract manufacturing. By following this model, the company has an easier time navigating the trends of the sector. We believe this makes the business more nimble and less at risk to changes in consumer preferences.
When it comes to navigating trends within the cannabis sector, the management team has been able to better control inventory far more effectively that the competition. Due to this, the company has been able to avoid having too much of any certain product on hand which has proven to be a serious issue in the space.
By avoiding cultivation and manufacturing entirely by contracting them both out, the management team has been able to de-risk the business and we find this to be a crucial aspect of the story especially during the uncertainty and inconsistencies the industry has been experiencing over the past several years
We believe The BC Bud Co. possesses the traits needed to be successful in Canada’s cannabis industry and are bullish on the direction the management team is bringing the business. At current levels, we believe the Canadian cannabis brand has a compelling valuation and a favorable risk-reward profile.
If you are interested in learning more about The BC Bud Co., please send an email to firstname.lastname@example.org with the subject “The BC Bud Co” to be added to our distribution list.
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This article contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expects”, “does not expect”, “is expected”, “believes”, “intends”, “anticipates”, “does not anticipate”, “believes” or variations of these words, expressions or statements, that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, provincial, state, municipal, local or other licenses, and any inability to obtain all necessary government authorizations, licenses and permits to operate and expand the Company’s facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal, state and provincial legalization, due to fluctuations in public opinion, industry perception of integrative mental health, including the use of psychedelic-assisted therapy, delays or inefficiencies or any other reason; any other factor or development likely to hamper the growth of the market; the Company’s limited operating and profitability track record; dependence on management; the Company’s need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including that of more established and better funded competitors; the impact of the Russia-Ukraine conflict on the global economy; the continued impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company’s efforts to identify the main risk factors that could cause actual measures, events or results to differ materially from those described in forward-looking statements, other risk factors may cause measures, events or developments to materially differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company does not undertake to revise forward-looking statements, even if new information becomes available as a result of future events, new facts or any other reason, except as required by applicable laws