This Unknown Cannabis Stock Could Have Big Upside as Wall Street Takes Notice

November 29, 2017 -


With First Investment Bank Analyst Report, Wall St Reveals they're Taking this Revenue-generating Cannabis Company Seriously

Little Solis Tek, Inc (OTCMKTS: SLTK) might finally be getting some attention from Wall Street. This month, the company received institutional research coverage from the investment bank and brokerage firm Taglich Brothers, with a “Speculative Buy” rating and twelve-month price target of $3.00 per share. Shares in this small cannabis company are gaining in daily volume and the stock is climbing as investors start to take notice of this company's market capitalization and under-the-radar status.

Even with their conservative financial modeling assumptions, the research analysts at Taglich cite the potential for SLTK to double within 12 months. The Taglich Brothers report can be found at http://www.taglichbrothers.com/equityuniverse/solis_tek.php.

Nutrient Line Launching With High Margins, Big Growth Potential

With the addition to Solis Tek's portfolio of the new nutrient product Terpenez-designed as a new class of horticultural products aimed at enhancing cannabis aromata and intensity-the company is opening a new revenue stream with significantly higher gross margins than other products. Comparisons to similar products in the agriculture industry suggest gross margins for Terpenez and SLTK's soon-to-be-launched follow-ons of around 70 to 80%. Compared to margins on the company's revenue generating and award-winning lighting products of 30 to 40%, Solis Tek's new nutrient line could mean big things for the small company.

With this launch, and continued expansion of the company's lighting products, the company could be setting up for positive cash flows from operations in 2018, according to the Taglich Report. This would be a rare and noteworthy occurrence for a small company, especially in the highly volatile world of cannabis companies, and this kind of performance could make SLTK highly attractive to both larger companies and investors.

Just take a look at the success at Scotts Miracle-Gro (NYSE: SMG), where their hydroponics-focused subsidiary Hawthorne has been a booming success since launching just a few years ago. This new business segment is all the company's management talks about recently, and it's obvious why...Hawthorne sales increased 137% to $287.2 million in the company's fiscal 2017 due to some smart acquisitions, and organic volume growth at Hawthorne was an astounding 20% for the year!

Stocks Move On Changes In Perception

Publicly traded stocks can move when investor perceptions about the future change. Case in point, the move from niche to mainstream for Bitcoin and other cryptocurrencies. Marathon Patent Group, Inc. (NASDAQ: MARA) is the prime example, with a 640% price appreciation in one week's time following the company's acquisition of a bitcoin mining service. The perceived future value changed as investors realized the potential for this bitcoin mining operation to pay off. Similarly, Cerecor Inc (NASDAQ: CERC) rallied 50% this week in the followup to news that the company would be acquiring TRx Pharmaceuticals, a specialty pharmaceutical company that has two U.S. FDA approved drugs on the market already.

With Wall Street starting to pay attention, it makes sense that main street investors are doing the same.

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