Congress passed the final version of the 2018 Farm Bill last week, which stipulates the legalization of industrial hemp.
“This week's passage of the 2018 Farm Bill was huge for the industry on so many levels," said Debra Borchardt, CEO of Green Market Report. "The president is expected to sign it as he looks for a ‘win’ at the end of the year.”
Hemp legislation opens the floodgates for legal CBD and hemp-derived products, benefiting a range of industries from healthcare to food to personal care.
Analysts expect valuations of hemp-based products companies to rise quickly once the bill is signed into law by the president.
Nemaura Medical (NASDAQ: NMRD), a medical technology company developing sugarBEAT® as a non-invasive, affordable, and flexible continuous glucose monitor (CGM) for use by people with diabetes and pre-diabetics, announced last week that the Advanced Technologies and Treatments for Diabetes (ATTD) Conference has accepted the Company’s sugarBEAT® Clinical Performance Data Abstract for poster presentation in February 2019 in Berlin.
Why It Matters: ATTD is the leading international forum for clinicians to present and discuss the use of new technologies with the goal of improving the care of people with diabetes at the fastest possible pace and has become synonymous with top-caliber scientific programs.
What’s Next: Nemaura has also recently completed the clinical studies required for sugarBEAT® FDA De Novo 510(k) submission and anticipates publishing this data on its website in the coming weeks and submitting for FDA approval in March 2019. Current global CGM usage rates are low and growing rapidly. The U.S. is the largest single market, where CGM is being used by an estimated 2.6% (630,000 users) of all diagnosed diabetics in 2018, representing annualized growth of 117%. The global addressable market for CGM is estimated at $82B per annum.
Disclosure
Nemaura Medical (NASDAQ: NMRD) is a client of RedChip Companies. NMRD agreed to pay RedChip a monthly cash fee for investor awareness services.
Level Brands (NYSE American: LEVB), an innovative marketing and licensing company that provides bold, unconventional, and socially responsible branding for leading businesses, reported total net sales increased 88% to $8.4 million for the fiscal year ended September 30, 2018. Gross profit as a percentage of net sales was 68.2% for the fiscal year, while net loss attributable to common shareholders improved 76%.
Key Quote: “We also expect that the addition of our recently announced pending acquisition of the nationally recognized CBD consumer products brand cbdMD will add significant scale to our overall business. With the capital we have available, we are confident that we can significantly accelerate the revenue growth of cbdMD in 2019 and beyond. We believe that the next three to five years will produce a few leading CBD brands, and our goal is for cbdMD to be the leader in this emerging space." - Martin A. Sumichrast, Chairman and CEO
What’s Next: Following the expected closing of its recently announced merger, the operations of Cure Based Development will continue as a wholly owned subsidiary of Level Brands. In addition, Scott Coffman, the CEO of Cure Based Development, and Caryn Dunayer, its President, will continue in similar positions. Following the closing, Mr. Coffman will also join Level Brands' Board of Directors. Mr. Coffman founded ecig company Blu in 2009 and built it into one the leading ecig brands in the world before selling it to Lorillard Tobacco in 2012.
Disclosure
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 (3) months of RedChip investor awareness services.
Spectrum Global Solutions (OTC: SGSI), a single-source provider of end-to-end, next-generation wireless and wireline network infrastructure services and solutions to the service provider (carrier) and corporate enterprise markets, will host an investor webinar and live Q&A session on Wednesday, December 19, at 11:00 a.m. EST.
The webinar will feature a presentation by Keith Hayter, President, who discusses Spectrum Global Solutions competitive positioning, growth opportunities, value proposition, and more. Following the presentation, Mr. Hayter will take questions for attendees.
Spectrum Global Solutions (OTC: 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.
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Advantego Corporation (OTCQB: ADGO) Joins the RedChip Nation!
RedChip is pleased to welcome Advantego Corporation (OTCQB: ADGO) to the RedChip Nation.
Advantego Corporation designs, develops and implements digital communications and intelligent software solutions as specialized Business Process as a Service (BPaaS). The 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. Company website: www.advantego.com.
Disclosure
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.
Esports Entertainment (OTCQB: GMBL), a licensed online gambling company with a specific focus on esports wagering and 18+ gaming, announced Affiliate Marketing Agreements with 14 additional esports teams as the Company continues to ramp up affiliate marketing activities in support of its launch of vie.gg, the world’s first and most transparent esports betting exchange.
Why It Matters: The addition of these 14 esports teams brings the total number of esports team affiliates to 190 since the Company’s first announcement on April 5, signifying widespread adoption of VIE’s favorable P2P wagering, in which an esports fan always wins, as opposed to pitting fans against the “house” where the odds are heavily stacked against esports fans. To this end, the Company also announced the addition of pool betting to VIE.gg. Pool betting is a further extension of the Company’s well received P2P model, which allows groups of opposing fans to wager against each other when their teams go head to head. This is especially attractive to the fan bases of smaller esports teams and is anticipated to be very successful in 2019.
Key Quote: “I want to welcome all of our new esports team partners and especially those from Asia. The region has a huge esports fan base, and we look forward to working closely with these teams as they engage with their fans at home and around the globe.” – Grant Johnson, Chairman & CEO
Disclosure
Esports Entertainment Group, Inc. (OTCQB: GMBL) is a client of RedChip Companies, Inc. GMBL agreed to pay RedChip Companies, Inc. a monthly cash fee for six (6) months of RedChip investor awareness services.
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Markets Enter Correction Territory
Markets have now entered correction territory as the recent downtrend persists.
The Dow Jones Industrial Average and S&P 500 are on track for their worst December performance since 1931, during the Great Depression.
Despite the growing bearish sentiment, we don't believe there is much downside remaining for this move. The more likely probability at this point is for the market to begin to work its way back into the range it's spent much of the year in.
So while we've "technically" entered correction territory, smart long-term investors see this as the buying opportunity it is.
Photronics, Inc. (NASDAQ: PLAB), a worldwide leader in supplying innovative imaging technology solutions for the global electronics industry, last week reported financial results for its fiscal 2018 fourth quarter ended October 31, 2018.
Fourth quarter revenue was a record $144.7 million, improving 20% compared with the same quarter last year and 6% compared with the previous quarter. Integrated circuit (IC) revenue was $110.9 million, up 15% compared with last year and 3% sequentially. Flat panel display (FPD) revenue was a record $33.8 million, up 36% compared with last year and 16% sequentially.
Key Quote: "We achieved record revenue during the fourth quarter, with growth in both IC and FPD, as mask demand remained strong and we continued to benefit from our successful repositioning of the business.” Peter Kirlin, Chief Executive Officer
The Backstory: Photronics is a leading worldwide manufacturer of photomasks. Photomasks are high precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel display substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components. They are produced in accordance with product designs provided by customers at strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the Company can be accessed at www.photronics.com.
MamaMancini's Holdings, Inc. (OTCQB: MMMB), a manufacturer and marketer of specialty pre-prepared, frozen and refrigerated all-natural food products (as defined by the United States Department of Agriculture), last week announced financial results for the third quarter of fiscal year 2019, ended October 31, 2018.
Third Quarter and Nine Months Highlights:
Third quarter of fiscal year 2019 revenue increased 12% to $8.2 million compared to $7.4 million in prior year period.
Net income available to common stockholders was a record $356,000, or $0.01 per diluted share, during the third quarter of fiscal 2019, compared to net income available to common stockholders of $29,000, or $0.00 per diluted share in the same quarter last year.
EBITDA, for the third quarter was $710,000 compared to $386,000 in the third quarter of fiscal 2018.
For the nine months sales increased 10% to $21.6 million versus $19.7 million during the comparable period of fiscal 2018.
Key Quote: “We turned in a solid performance in the third quarter of fiscal 2019. Revenue increased 12% versus last year’s comparable quarter and net income increased dramatically on that revenue growth.” Carl Wolf, Chairman and Chief Executive Officer, MamaMancini’s Holdings
The Backstory: MamaMancini's is a marketer and distributor of a line of beef meatballs, turkey meatballs, and chicken meatballs, all with sauce; five cheese- and mozzarella-stuffed beef, turkey, and chicken meatballs, all with sauce; original beef and turkey meatloaves; stuffed pepper mix; sausage and peppers; chicken parmesan; pasta entrees; and other similar Italian cuisine products. The Company's sales have been growing on a consistent basis as the Company expands its distribution channel, which includes major retailers such as Publix, Costco, Shop Rite, Jewel, Lunds and Byerlys, SuperValu, Safeway, Albertsons, Whole Foods Market, Shaw's, Kings, Roche Bros., Key Foods, Stop & Shop, Giant, Giant Eagle, Hannaford, Martins, Foodtown, Sam's Club, Topps, Kroger, Shoppers, King Kullen, Schnucks Markets, Central Markets, HEB, Stew Leonard’s, Weis Markets, Ingles, and The Fresh Market. The Company sells to distributors such as Sysco, AWI, UNFI, SUPERVALU, Monterrey Provision Co., Kehe, Burris Logistics, and C&S Wholesale Grocers. In addition, the Company sells a wide variety of its products through QVC, the world's largest direct to consumer marketer, via on air presentations, auto ship programs, and direct purchases through the internet or phone.
Disclosure
MamaMancini’s Holdings, Inc. (OTCQB: MMMB) is a client of RedChip Companies, Inc. MMMB agreed to pay RedChip Companies, Inc. a monthly cash fee for RedChip investor awareness services and consulting services.
GMS Inc. (NYSE: GMS), a leading North American distributor of wallboard and suspended ceilings systems, last week reported financial results for the second quarter of fiscal 2019 ended October 31, 2018.
Second Quarter Net Sales Increased 28.7% to a Record $833.8 Million
Second Quarter Net Income Improved by 38.2% to $24.9 Million
Second Quarter Adjusted EBITDA Increased by 60.7% to a Record $87.1 Million
Announces Authorization of $75 Million Stock Repurchase Program
Key Quote: “We delivered a strong fiscal second quarter highlighted by record net sales and adjusted EBITDA. Our organic sales increased 8.7% year-over-year, reflecting broad-based sales growth across each of our product groups. Adjusted EBITDA increased more than 60%, reflecting contributions from the Titan acquisition, our continued focus on price discipline, and our steadfast commitment to operational improvement” said Mike Callahan, President and CEO of GMS
Back Story: Founded in 1971, GMS operates a network of more than 245 distribution centers across the United States and Canada. GMS’s extensive product offering of wallboard, suspended ceilings systems, or ceilings, and complementary construction products is designed to provide a comprehensive one-stop-shop for our core customer, the interior contractor who installs these products in commercial and residential buildings.
Quote of the Week
"The Company must have a niche product or service and you must believe in that niche."
-Charles Diker, Diker Management
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