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.
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.