Latest news, reports, and more from the RedChip Nation.
Small-Caps Take the Lead

After a bumpy ride last year, Wall Street is trying to stage a strong comeback in 2019 on improving economic growth and a dovish Fed.


While the gains are broad-based, with both the S&P 500 and Russell 2000 index off to their best start in the past 32 years, small caps have outperformed, posting a gain of 8.8% over the past 12 trading sessions versus a 5.2% gain for the S&P 500, according to Dow Jones Market Data.


There are several reasons for the outperformance of small-cap stocks that will likely continue in the coming months. First, global issues like Brexit, trade war, global slowdown as well as slowing growth in Europe, Japan and China are giving boost to small caps, which are well insulated from these headwinds. This is because these stocks are closely tied to the U.S. economy and often have significantly less exposure to the international market.


With the latest rally, small caps still appear cheaper compared to their large-cap counterparts. Per Bank of America Merrill Lynch, small-cap valuations have fallen to 15-year lows relative to large-caps, with the P/E ratio of the Russell 2000 now below its long-term average.


GSRX Industries (OTCQB: GSRX) Nearly Doubles Q4 Revenue Guidance

GSRX Industries (OTCQB: GSRX) surprised the market last week, raising fourth quarter guidance to $2.0 million, up from its previously issued range of $1.0 million to $1.4 million.


The company’s growing network of cannabis dispensaries (it operates six across Puerto Rico and California) has been a major driver behind its growth. Achieving its increased guidance target would mean GSRX grew revenue 185% over its already impressive third quarter performance.


"We are seeing great sales at our six dispensaries, and our recently launched Hemp-based Pure and Natural CBD products line is also seeing strong demand," said GSRX CEO Les Ball. "In addition, we anticipate opening three additional dispensaries in Puerto Rico during the first quarter."


“It pays to be vertical”


That’s according to Curaleaf Holdings’ (OTC: CURLF) Joseph Lusardi, who made the comment at Benzinga’s Cannabis Capital Conference last week. Lusardi is CEO of one of the largest multistate operators in the space, a $2 billion giant holding licenses in 11 states, and Lusardi has played a key role in the company’s massive growth over the past two years.


While dispensaries have played a major role in GSRX’s recent growth, it represents just one segment of this growing enterprise.


GSRX management made a series of joint ventures and investments in California last year, including a majority stake in an established manufacturer of cannabinoid (CBD) products, Spirulinex.


Spirulinex has developed an all-natural, patent-pending method of suspending cannabinoids in water to create aqueous solutions, thereby eliminating the need for oils, butter, or synthetic lipids.


This proprietary method enables GSRX to develop and offer products in which cannabinoids are scientifically dosed for consistency and quality assurance.


Commenting on the deal, CEO Les Ball stated, “With our majority stake in Spirulinex, GSRX has now added a major link of the rapidly growing cannabis product supply chain to the Company’s portfolio of businesses.”


Another key link in the development of its vertically-integrated operation was announced in February, when GSRX entered a joint venture with the well-known Bay Area grow brand, Sunset Connect.


Sunset Connect produces top-shelf indoor flowers and a portfolio of branded extractions, including crumble, shatter, wax, and rosin. Its products are available in dispensaries and delivery services throughout the region.


Expanded cultivation space post-deal positions the operation well for a strong 2019.


Strong Competitive Advantages


With its deals with Spirulinex and Sunset Connect, GSRX got more than exciting operations. It also got a talented team with a wealth of experience, something not easily duplicated.


Founded by a biochemist and a master grower, Spirulinex has successfully developed the only plant-based THC and CBD suspension and powdered product in California.


Spirulinex’s head of extraction is a multiple Cannabis Cup winner and works closely with the company’s Chief Scientist in developing formulations and extractions. Together they ensure consistent dosing and ideal user experience for customers.


Commenting on the future of the industry, Curaleaf’s Lusardi said, “Bioavailability is going to become more important in order to differentiate products and effects and meet the needs of a broader consumer base.” He went on to add that precision dosing and lesser-known cannabinoids are also topics of discussion in terms of the future of the industry.


CBD – A Rapidly Evolving, Multi-Billion-Dollar Opportunity


Beyond its growing operations in medical and recreational cannabis markets, GSRX is also quickly moving into the CBD market under its new Pure and Natural brand.


As with its partnerships in California, Pure and Natural is best-in-class.


According to a deal announced this week, “We made a rigorous search for a partner to supply a line of CBD products that are pure, organic, and which are worthy complements to our business,” said Cooper Ansett, Zen Stop Co-Founder. “In Pure and Natural, we found a brand that offers a broad range of pharmaceutical-grade CBD products that are manufactured to exacting standards and which provide both excellent quality and ease in dosing.”


Zen Stop is one of the fastest growing revolutionary wellness businesses. Zen Stop will provide a broad selection of Pure and Natural pharmaceutical-grade, certified-naturally organic, full spectrum CBD products, including capsules, tinctures/oils, salve, energy drink packets, vape pens, skin care and both dog and cat pet products. In addition, Pure and Natural will offer its patent-pending Spirulinex CBD Dragon Glass product via Zen Stop.


CBD Sales Set to Go Mainstream with Farm Bill Passage


The 2018 Farm Bill, signed into law by President Trump in late December, is expected to catapult the nascent but booming $1 billion CBD market into mainstream acceptance and multi-billion-dollars in sales.


"The passing of the Farm Bill is transformational for the industry, allowing for the national cultivation, production, distribution, and marketing of hemp-derived products in the United States," stated Hess Moallem, President and CEO of Charlotte's Web, a leader in hemp-derived CBD products.


Mile High Labs CFO Jon Hilley said, “We’re talking to big global brands now to implement CBD into their products but are underestimating how quick this market will develop."


Although consumers have been able to purchase CBD products in the 47 states where CBD sales are permitted, legality at the federal level has kept major retailers and other key players away.


But times have changed, and many in the medical community and in the public say that CBD can be helpful for certain health conditions. Most notably, it has clearly been proved to help reduce the number of seizures in people who suffer from two devastating forms of epilepsy. The FDA approved the CBD-based drug Epidiolex in mid-2018.


Now with the passing of the Farm Bill and the legalization of industrial-hemp production, experts expect the CBD market to expand rapidly.


"The passing of the farm bill will most certainly open up the marketplace for hemp products, specifically hemp extracts that are high in CBD," says Josh Hendrix, the director of domestic product business development for the cannabis company CV Science. “It will provide a higher comfort level for retailers and consumers and will lead to more investment and opportunity in the industry as it will continue to see rapid expansion."


According to cannabis industry analysts the Brightfield Group, the hemp-derived CBD market could hit $22 billion by 2022.


Low Valuations, Despite Potential


Now is the time to focus on cannabis growth and expansion in the U.S., according to Sean Stiefel, portfolio manager at Navy Capital.


“The [valuations] are way too low," he said. “Your mom, sisters, and brothers will be able to name brands by later this year."


We believe GSRX is one of the stocks that has yet to realize its fair valuation, based on both current performance and future expectations.


With exciting deals underway, a commanding presence in the Puerto Rican market, a growing foothold in the massive California market, and the beginning of a CBD segment set to take off in 2019, GSRX is one of the best bargains in the space at current levels.


To learn more about GSRX, view their latest investor presentation, filed with the SEC just last week: 1381240/ 000149315219000710/ex99-1.htm



GSRX Industries (OTCQB: GSRX) is a client of RedChip Companies. RedChip Companies, Inc. received 1,000,000 registered shares of GSRX for consulting services and 50,000 shares for investor awareness services. Be advised RedChip intends to sell some or all of its shares at any time, including when you are buying.


1155 words
Level Brands (NYSE American: LEVB) Webinar Replay Now Available


We hosted an exclusive webinar with Level Brands’ Chairman and CEO, Martin Sumichrast, last week. During the well-attended event, Sumichrast provided detailed insight into the company’s recent transformative acquisition of cbdMD. Watch the full presentation and Q&A session: .


Why It Matters: cbdMD, a CBD oil company that produces the industry's highest quality CBD using innovative production and extraction techniques, has been dominating the market with its full line of organic THC-free products. Amy's CBD Guide said, "… cbdMD has been able to establish themselves as one of the most trusted brands in the industry. By focusing on their quality ingredients, competitive pricing, and personal customer support, cbdMD is quickly becoming a competitive force in the industry."


Key Quote: “It's so exciting to witness the CBD industry flourish and break new boundaries. The passing of the Farm Bill opens many new opportunities for us, and we will continue to push for more visibility and education in 2019.” – Caryn Dunayer, President of cbdMD



Level Brands (NYSE American: LEVB) is a client of RedChip Companies. LEVB agreed to pay RedChip a monthly cash fee and 5,000 shares of Rule 144 stock for four months of RedChip investor awareness services.

Spectrum Global (OTCQB: SGSI) Uplists to OTCQB


Spectrum Global Solutions (OTCQB: SGSI), a single-source provider of end-to-end next-generation wireless and wireline network as well as professional services solutions to the service provider (carrier) and corporate enterprise markets, began trading on the OTCQB on Monday.


Why It Matters: Moving from the OTC Pinks to the OTCQB should lead to increased interest in SGSI and its rapidly growing operations.


Key Quote: "The OTCQB is considered an ‘established public market’ by the SEC. To be eligible for OTCQB, companies must be current in their financial reporting, undergo an annual verification and management certification process. The OTCQB increases transparency, reporting standards, management certification and compliance requirements, and accordingly, many more broker dealers trade stocks on the OTCQB. This will hopefully result in greater liquidity and awareness for our Company. As we focus on building a business that delivers long-term shareholder value, we believe this up-listing will enhance investor accessibility and serve as a stepping stone to meeting the listing requirements for admission to the NASDAQ or NYSE in the future.” – Roger Ponder, CEO



Spectrum Global Solutions (OTCQB: SGSI) is a client of RedChip Companies, Inc. SGSI agreed to pay RedChip Companies, Inc. a monthly cash fee for six (6) months of RedChip investor awareness services.

Nemaura Medical (NASDAQ: NMRD) Announces Improvement to SugarBEAT® Continuous Glucose Monitor

Nemaura Medical (NASDAQ: NMRD), a medical technology company focused on the development of SugarBEAT® as a non-invasive, affordable and flexible Continuous Glucose Monitor (CGM) for use by diabetics and pre-diabetics, announced last week that it has substantially advanced the use-case for SugarBEAT® to improve management of glucose levels by spending more time in range.


Why It Matters: Nemaura has previously achieved industry-leading, skin-patch warm-up periods of less than one hour, meaning that reliable glucose readings can be expected one hour after application of the skin-patch. Following optimization, Nemaura is now confident that in commercial application, this warm-up period can be halved to 30 minutes. This is significant because it provides users with greater flexibility, for instance, for users who wish to wear the skin-patch for a few hours daily. By comparison, the leading CGM on the market requires a two-hour warm-up period (or delay before reliable reporting of glucose levels) and is designed to be worn continuously for 10 days.


Key Quote: "We are very proud of these latest improvements in warm-up times for SugarBEAT®, which enable a CGM solution for the 80% of diabetics that are not insulin-users as well as pre-diabetics. The flexibility of SugarBEAT® will be a key differentiating factor with the potential to reach the largest number of diabetics and provides Nemaura with the opportunity to expand into new markets.” – Dr. Faz Chowdhury, CEO


Long-Term Potential: Globally, there are more than 400 million diabetics and 1 billion pre-diabetics. The annual addressable market for CGM for diabetics (excluding pre-diabetics) is estimated at $82 billion, with the U.S. market estimated at $13 billion.


CGM adoption among diabetics is growing rapidly; the U.S. market saw 117% growth in 2018. To date, the measurable CGM market pertains mostly to insulin-using diabetics, a potential population of approximately 20% of all diabetics. Therefore, while the U.S. is the largest single market for CGM globally, it is estimated that the 630,000 diagnosed diabetics using CGM in the U.S. in 2018 represent just 2.6% of that total addressable market.



Nemaura Medical (NASDAQ: NMRD) is a client of RedChip Companies. NMRD agreed to pay RedChip a monthly cash fee for investor awareness services.

Cemtrex (NASDAQ: CETX) Announces Increased SmartDesk Demand and Accelerates Plans for International Shipments After Enthusiastic Reception at CES


Cemtrex Inc. (NASDAQ: CETX), a leading global technology and manufacturing company announced that, following an enormously successful showing at the Consumer Electronics Show last week, they are experiencing increased demand for their flagship product, SmartDesk, from consumers across the globe.


Key Quote: “We were blown away by the attention we received at this year’s CES.” Saagar Govil, CEO and Chairman of Cemtrex


The Backstory: Cemtrex, Inc. (CETX) is the manufacturer of the SmartDesk, the world’s most advanced workstation. Cemtrex is a diversified technology company that is driving innovation in a wide range of sectors, including smart technology, virtual and augmented realities, advanced electronic systems, industrial solutions, and intelligent security systems.



Cemtrex, Inc. (NASDAQ: CETX) agreed to pay RedChip Companies, Inc. a monthly cash fee for three (3) months of investor relation awareness services.

Update on Trial Date for Litigation of Digital Ally, Inc. (NASDAQ: DGLY) Against Axon (NASDAQ: AAXN)


Digital Ally, Inc. (NASDAQ: DGLY) announced a development in its legal battle against Axon Enterprise, Inc. (NASDAQ: AAXN, formerly TASER International, Inc.). At a recent court hearing, both parties expressed a desire to set a trial date and the Court took the issue under advisement. A trial date will be forthcoming.


The Company filed its case in the United States District Court for the District of Kansas against Axon on January 14, 2016, alleging that Axon has willfully infringed, and continues to willfully infringe, Digital’s ’452 Patent, which covers its auto-activation technology.


Key Quote: “We were excited to meet with the Court and discuss the trial. We were glad to hear that both parties were looking to set a trial date. We are looking forward to the judge setting that date and moving forward to present our case to a jury.” Digital Ally’s CEO, Stanton E. Ross


The Backstory: Digital Ally, Inc., headquartered in Lenexa, KS, specializes in the design and manufacture of the highest quality video recording equipment and video analytic software. Digital Ally pushes the boundaries of technology in industries such as law enforcement, emergency management, commercial fleets, and consumer use. Digital Ally’s complete product solutions include in-car and body cameras, cloud and local management software, and automatic recording technology. These products work seamlessly together and are simple to install and operate. Digital Ally’s products are sold by domestic direct sales representatives and international distributors worldwide.



Digital Ally, Inc. (NASDAQ: DGLY) is a client of RedChip Companies, Inc. DGLY agreed to pay RedChip Companies, Inc., a monthly cash fee for four (4) months of RedChip investor awareness services.

Advantego (OTCQB: ADGO) Expands North American Footprint Through Strategic Partnership with Aska Electronics Co., Ltd.


Advantego Corporation (OTCQB: ADGO) announced the signing of a strategic partnership through a definitive agreement with Aska Electronics Co., Ltd. of China.


Under the agreement, Advantego will acquire the ongoing rights to be Aska's wholesale aggregator for all Aska-related product sales in North America. Aska's 2018 North American revenues were US$13,900,322 (unaudited). The agreement also provides Advantego a minimum of $280,000 in net profit from this relationship regardless of revenue and cost of goods during the first year.


Aska is a leading manufacturer of wireless audio and innovative electro-acoustic products that include proprietary noise cancellation technology and Bluetooth capability for headphones, earphones, waterproof sport earbuds, speakers, and IoT devices.


Key Quote: “This strategic move will enable us to combine best-in-class technologies with Aksa's innovative products and maximize niche opportunities that we have identified in targeted markets.” Advantego CEO Robert W. (Rob) Ferguson


The Backstory: Advantego Corporation designs, develops, and implements enterprise software solutions as a specialized Business Process as a Service (BPaaS). These elite, custom business solutions are available to large enterprises, affiliate networks, and franchise operations. The Company also offers a variety of stand-alone products specific to targeted industries and provides its business offerings to include product design, manufacturing, and distribution services. Company website:



Advantego Corporation (OTCQB: ADGO) is a client of RedChip Companies. Advantego Corporation (OTCQB: ADGO) pays Red Chip a monthly cash fee for investor awareness services.

Quote of the Week
“The single most important way we attempt to manage risk, in any environment, is by seeking to buy stocks very cheaply-we never want to pay too much."
- Bill Hench, Portfolio Manager, Royce Opportunity Funds
Lesson of the Week
Mitigate risk in small-caps by buying a basket of stocks.
Read More
Latest Videos
Level Brands' (NYSE American:LEVB) CEO Discusses Acquisition of cbdMD in Exclusive Interview
Watch Now
Meso Numismatics (OTC: MSSV): Emerging Numismatic Company with Highly Specialized AI Technology
Watch Now
Advantego (OTCQB: ADGO): Digital Communication & Enterprise Software Provider
Watch Now
Meso Numismatics (OTC: MSSV): Emerging Tech Leader in Rare Coin and Numismatic Market
Watch Now
Cemtrex (NASDAQ: CETX) Set to Disrupt Billion Dollar PC Desktop Market
Watch Now
Advantego (OTCQB: ADGO): Building Flexible, Subscription-based Software Products
Watch Now
This Week on RedChip TV: 3 Small-Cap Stocks Set for Big Gains in 2019
Watch Now
Nemaura (NASDAQ: NMRD) Medical Webinar
Watch Now
Esports Entertainment (OTCQB: GMBL): First Bet Exchange in Multi-Billion-Dollar Esports Wagering Market
Watch Now
Digital Ally (NASDAQ: DGLY): International Leader in Innovative Technology for Law Enforcement
Watch Now
Cemtrex (NASDAQ: CETX): Rapidly Growing Technology Innovator
Watch Now
Catasys (NASDAQ: CATS) Solution (OnTrak) Reduces Medical Costs by 54% for Enrolled Members
Watch Now
Immuron (NASDAQ: IMRN): Developing Innovative Immunotherapy Therapies for Gut-Mediated Diseases
Watch Now
Nemaura Medical's (NASDAQ: NMRD) SugarBEAT® Technology Targets Billion Dollar Opportunity
Watch Now
Nutriband (OTCQB: NTRB): Innovative, Proprietary Transdermal Solutions
Watch Now
Order Small Stocks, Big Money Today!
Dave Gentry is the author of Small Stocks, Big Money: Interviews With Microcap Superstars. Published by Wiley, this first-hand perspective on the fast world of microcap investing is now available for purchase.
MidSouth Week in Review
If one had invested $1,000 in the S & P 500 at the top of the market in 1928, it would be worth $3.85 million today vs. $73,086 for 10-year Treasury bonds vs. $20,634 for T-bills. If a 65-year-old had invested the same amount in the S & P in 1976 when they were 23 years old it would be worth $92,425 today vs. $6,636 for the Treasury bond investment.
Read More
Weekly Index Performance
Markets continued to move higher last week, with major indexes up as much as 3.6%.
Read More
About RedChip
RedChip Companies, an Inc. 5000 company, is an international investor relations, media, and research firm focused on small-cap and mid-cap companies. Since 1992, RedChip has delivered concrete, measurable results for its clients through the most comprehensive service platform in the industry for small-cap and mid-cap companies. These services include a worldwide distribution network for its stock research written by analysts holding the CFA designation; retail and institutional roadshows in major U.S. cities; outbound marketing to stock brokers, RIAs, institutions, and family offices; a digital media investor relations platform that has generated over 2.3 million unique investor views; quarterly global online institutional and retail investor conferences that reach over 10,000 investors annually; "The RedChip Money Report" television show which airs in 100 million homes across the U.S. on The Family Channel; a weekly newsletter delivered to 60,000 investors; TV commercials in local and national markets; corporate and product videos; website design; and traditional investor relation services, which include press release writing, development of investor presentations, quarterly conference call script writing, strategic consulting, capital raising, and more.
RedChip Disclosure
RedChip Companies, Inc. research reports, company profiles and other investor relations materials, publications or presentations, including web content, are based on data obtained from sources we believe to be reliable but are not guaranteed as to accuracy and are not purported to be complete. As such, the information should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed in RedChip reports, company profiles, or other investor relations materials and presentations are subject to change. RedChip Companies and its affiliates may buy and sell shares of securities or options of the issuers mentioned on this website at any time.
RedChip Visibility is a division of RedChip Companies, Inc. and offers research services to paying clients. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that the RedChip Companies Inc. is an investor relations firm hired by certain Companies to increase investor awareness to the small-cap equity community.
Stock market investing is inherently risky. RedChip Companies is not responsible for any gains or losses that result from the opinions expressed on this website, in its research reports, company profiles or in other investor relations materials or presentations that it publishes electronically or in print.
We strongly encourage all investors to conduct their own research before making any investment decision. For more information on stock market investing, visit the Securities and Exchange Commission ("SEC") at and view RedChip’s Disclosures.
Copyright © 2018 RedChip Companies, Inc. All Rights Reserved.
You are receiving this message because this email address has signed up to receive News Alerts.
If you received this email by mistake you can
unsubscribe from all emails.