For anyone looking at investing in the cannabis industry, the number one thing we can tell you is to be selective.
Focus on companies that are executing on previously announced initiatives and are focused on creating value for shareholders.
Focus on companies that are growing.
Impressive Earnings Growth
Today, Kush Bottles reported its third quarter financial results and the company saw revenues grow by more than 100% when compared to the same period last year.
Kush Bottles does not actually touch the cannabis plant. The company provides customizable packaging products, materials and supplies for the cannabis industry. The company sells its products to businesses (medical and recreational dispensaries, large and small scale processors, and packaging re-distributors) operating in jurisdictions that have some form of cannabis legalization.
During the quarter, Kush Bottles reported $6,119 in net income on $4.7 million in revenue. The company’s gross margin increased by 1%, to 34% and revenue increased by 103% when compared to the same period last year.
The revenue numbers included one month of numbers from CMP Wellness which was acquired on May 1st for $1.5 million and 7.8 million shares of stock. CMP has been selling standard and customized vaporizer products since 2013 and is a private distributor of vaporizers, cartridges and accessories.
Good Businesses Require Great Leaders
I know the concept seems simple but the cannabis industry is not like any other market. When we look at any company as an investment opportunity, we always consider the founders and the management team. We look into each individual’s background and track record before making any investment. We always recommend prospective investors to call the company phone line just to see if they answer.
credit:420inel.com
