Some notes on Cresco Pharmaceuticals, cannibis has recently been legalized accross Australia by federal legislation since November last year which has paved the way for pharamcutical companies such as Cresco to start importing cannibis based products from overseas into Australia.
Cresco is one of the first Australian based companies (listed on the ASX as CPH) to be involved in the process of importing and exporting cannibis based medical products within Australia.
The companies production and research base is in Switzerland where they have been developing an over the counter cannibis edible and hope to have it approved by health boards and fully commercialized by early 2018 (submitting for approvals will begin in early 2017). The new edible product will first be sold in Switzerland before targeting parts of the EU and US (nothing about Australia yet).
Cresco has partnered up with an Australian pharma import company, “Health House” to begin importing medicinal cannibis from approved international providers such as Cannimed (canadian medicinal cannibis producer). Early announcements have mentioned that the company will be capable of supplying medicinal cannibis to prescribed Australians with 8 weeks time.
Looking at the current CEO’s background, Dr. Miri Halperin Wernli was a VP at her previous company (Actelion) also a pharmaceuticals company. She was there for 14 years (not sure if she was VP the whole time) through that time, the company was a small unlisted entity and grew over the 14 years to a substatial force in the swiss pharmaceuticals industry.
Looking at Cresco currently, there have been alot of news and hype about the new cannibis legislations and the company had just released another announcement paper with more good news on the emerging industry, the stock had jumped up to about 31c a share after the annoucement.
I’ve put in a tentative order at 27c a share, for this stock on the ASX. Hopefully we can get filled at this level once the effect of this recent news wears off. This will be a long term hold on an unleveraged stock position. We’ll see where we are at by 2018, the first target will be to close out half the position if the stock gets up to 54c. This will allow us to get back our initial investment while leaving half of the position left on the trade for more potential gains.
Will update this post if the order gets filled.
UPDATE 28/2/2017: I got frisky and got my order filled at 33c, I stuffed up and got a bad entry. I’ve never traded a small peny stock like this before and was affraid it would get away from me. Later that day the stock fell to 29c and then cranked back up to 32c the following day. Could be making a level here otherwise we might be in for some more downside. My exit plan will be to sell half at 66c if it goes up. If it falls back down to the 23/24c range I’ll pick up another lot to average down my position.
UPDATE 03/03/2017: Since entry the stock has risen higher after each annoucement and is now in a trading halt as it prepares to release another announcement next week. The stock has now risen to 38.5c putting this trade in the green for now, it’s a sharp rise on the charts so I do expect some kind of pull back at some point or at least a leveling out but I’ve never traded a small stock like this before so I don’t really know what to expect in the following months. I do however, expect another bump up next week after they announce thier letter of intent to supply thier new edible product for pets.
Also something else I learned in thier recent announcments is the recruiting of a number of Acelton scientists that must have come over when the company first started. Thier lead scientists are ex Actelon staffers as well as thier CEO.