Video Summary of Contrarian Alert: Short interest vaporizes at MediPharm Labs.

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Club
$299/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
JOIN THE CLUB

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

Watch the video summary of the July 11th INK Morning report. INK Research and Canadian Insider are both subscriber-supported. We do not accept payments from issuers or promoters for stock coverage.

INK Research and Canadian Insider are both subscriber-supported. We do not accept payments from issuers or promoters for stock coverage.

Script:

MediPharm Labs specializes in cannabis concentrates. The stock has seen short interest drop to about 930,000 shares, down from a peak of over 8 million shares on June 15th.  That was two days before the company closed a $75 million financing of 13.5 million shares priced at $5.55.

Although the stock has not closed above that price since May 30th, it now has a positive setup based on our signals.

Ottawa released its rules for cannabis extracts on June 14th.  Five days later, MediPharm announced a deal with Canadian product company Ace Valley to launch a line of cannabis vape pens. The company is hoping that the regulatory hurdles for such products will be cleared by late 2019.

Although regulatory risk are a key consideration for the stock, market dynamics could work in Medipharm’s favour. According to a CBC News report, in California, nearly 25% of legal cannabis sales in 2016 were for vape cartridges.

Meanwhile, Medipharm is working on export markets and on June 24th, it announced its first export shipment of medical cannabis concentrate into Australia under permits.

While the company lost $570,000 in Q1, cash flow from operating activities was $4 million.  Given that we have seen some modest insider buying on the recent pullback, contrarians interested in the marijuana industry may want to put this stock on their radar.

Get our full report through INKResearch.com or via the Canadian Insider Club and always consult your registered investment advisor before investing. Good luck friends and thanks for listening!

Comment On!

140
Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to CanadianInsider.com (via Easy Blurb).