A successful hemp harvest has reduced the risk and increased the upside for CBD distillates grower and producer Upper Street Marketing (OTC:UPPR). The probability of the share price getting to $5.00 in 2020 has substantially increased. UPPR’s most recent price was $0.55.
Upper Street Marketing was added to Shiny-Pennies.com recommendation list on March 6, 2019 with a price limit of $0.50. The limit for a half position was raised to $0.85 on July 18, 2019. Since the recommendation the share price has ranged from $0.42 to $2.15.
The rationale for Upper Street to be added to Shiny-Pennies.com list was provided in my March 6, 2019, article “Passage of Farm Bill Doubled projected size of US Cannabis industry Overnight”. Below are the key points about UPPR that were made in the article:
- “… an acre of CBD grade hemp could generate as much as $200,000 of sales for the grower and producer.”
- UPPR “… could potentially generate up $100 million of revenue and over $90 million in profits over the next 18 months.”
- “… to fully develop the business plan, the company is in the process of raising $15 million.”
- “… projecting that the company could potentially have to issue as many as 100 million new shares.”
My utilization of a “18 months” timeline for predicting UPPR’s revenue and profits was because it was a long shot that UPPR would be able to raise the capital in time to plant a hemp crop in the Spring of 2019. UPPR surprised everyone. During October 2019 the company harvested 1,200 acres. This included the 300 acres that UPPR planted and the 900 acres that its 50/50 partner Fox farms planted in April 2019.
UPPR planted, harvested and is now utilizing its own facilities and equipment to produce organic CBD oil distillates from hemp. Based on the price of a liter of CBD oil UPPR will produce more than $200,000 per acre from its 300 acres and in excess of $100 million of revenue and $50 million in EBITDA over the next six to 12 months.
An uncontemplated surprise is UPPR leveraged its 100,000 sq. foot facility and equipment to become a monopoly producer of CBD oil distillates. UPPR is the only large-scale extractor of CBD from hemp for all of the Colorado farmers who grow hemp in its 400,000 acres agricultural region.
Perhaps the biggest surprise is that UPPR only had to issue 70 million shares to finance its business plan. UPPR ranks as one of best development stage companies throughout my 42-year career. Its extremely rare for a fledgling company to produce revenue and profits faster than the projections and with less dilution. CEO Joe Earle and his team should be commended.
With less than 200 million shares outstanding the probability of UPPR shares going to a minimum of $5.00 over the next 12 months has risen significantly. A double-digit share price by the end of 2020 is very possible. Shiny-Pennies.com’s price limit to purchase shares has been raised to $1.00.
Upper Street Marketing has been on Shiny Pennies recommendation list since March 2019. The focus of Shiny Pennies is to provide subscribers with low priced public company and private startup opportunities whose share prices have the potential to multiply. The “Free Cash Flow Investing” video below explains the research screen that I used to identify two penny stocks. Each of them multiplied by a minimum of 20 times.
DISCLOSURE: I do not hold shares in Upper Street Marketing, and I have not been paid to promote the company.