I knew it. Today, Golden Leaf Holdings’ (GLH.C) announced its subsidiary Medical Marijuana Group (MMG) received the cultivation license for its massive grow operation in Ontario. The news sparked a big spike in GLH stock today, with a rise of over 25% by close of trading.

(source: Google)

Today’s run is  the latest in a series of gains over the last few days. Hindsight being 20/20, insiders were obviously gobbling up shares ahead of today’s announcement. (I wish someone had told me…alas, I still do not own any GLH shares)

This is a big deal because it signifies the heavy lifting is done for GLH. They’ve cleared all the Health Canada regulatory hoops they need to start building their facility. The only thing left will be for Health Canada to inspect the final production plant.

Phil Millar, president of MMG says

“We are very excited to receive this key licence from Health Canada and look forward to continuing to work with the agency towards expanding the operating scale of our St. Thomas facility.”

Gotta like expansion. (rubs hands together greedily)

Over 41 million shares changed hands today. This is a clear sign the market recognizes GLH has all the ingredients you need for a successful cannabis company. They have their production facilities in Ontario, distribution networks and licenses in Oregon and Nevada and proven brands. Nice position.

When I joined the EG team, I was encouraged to sniff around our clients and pick a few I was interested in following. I chose GLH, because I couldn’t figure where the investment dollars were. They had good ideas and were making the right moves.

It seems the slumbering giant has awakened. The big question we need to ask is – what’s the risk of flippers and shorters grabbing their dough and running away.

I wish I could tell you this isn’t a possibility, I wish I could tell you that, but sometimes in this world, there are targets so juicy and tempting… I think GLH is ripe for a brief blowout in the short term.

There’s too many shares trading too high for my nervous knees. Those of you in the shorting game, I think there’s a little more room at the top, but not much, get ready to run when the avalanche starts.

Once it’s all over I am confident the stock will settle higher than the 20 cent funk it’s been in all year. The fundamentals of GLH’s business plan is strong, and once the trade bots and wild west gunfighters clear out, it’s a solid investment to look at.

FULL DISCLOSURE: Golden Leaf is an Equity Guru client, but I do not hold any stock in the company.


Written By:

Stephan Herman

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Vancouver Boy

Hate to say I told you so?

Bro, I hate to tell you, even with this jump this lumbering turd is still around -35% YTD return and a -45% 2 year return. Not exactly a winner so far since Equity GURU began recommending them.

Full disclosure, I am long GLH and hold shares. The headline just rankled me a bit.

Was their a pump pieced I missed telling people to get in on the action before this recent rise? Then “I told you so” might be appropriate

Chris Parry

Hey, Stephan wrote GLH up on November 8: https://equitystaged.wpengine.com/2017/11/08/golden-leaf-glh-c-catches-breath-marches-forward-2/
A lot of companies riding big wins can be pointed at as losses if you go far back enough. I stopped writing up GLH because I felt it needed fresh eyes, and Steph hit them at the right moment.
FWIW, I first wrote up GLH back in my Stockhouse days. Equity.Guru coverage has been even handed, has described the pros and cons accurately, we were right there suggesting the CEO needed to go even as they were a marketing client of ours, and when it hit $0.20, we stated we thought it was a bottom – much to the disdain of the usual trolls, who said it was going deeper down.
If you bought at $1 , like me, several years ago, you’re still in for a long ride to get level. But at least the company is moving in that direction for a change.
Lastly: We don’t pump.

Vancouver Boy

Well written and thought out response, Thanks for taking the time. I do appreciate your analysis on smaller companies

I wouldn’t call this one a winner just yet. Although it did made me a mint yesterday.


Where is the money gonna come from to build this new facility? They are bleeding cash, still own millions for their latest acquisitions and their operations in Oregon are going nowhere? I’m not a hater, but getting a pop off PR is not a change in strategy, or a change in operations that changes the true operational trajectory of the company.