NATURALLY SPLENDID ENTERPRISES...

originally published Wednesday, November 15, 2017

All Marijuana stocks

With the marijuana sector hotting up again, we were going to take a look at modestly named Naturally Splendid Enterprises yesterday, but the power was knocked out at Maund Acres for 8 hours, so I was forced to relax, which was tough, but I managed to cope. However, you were at least alerted to it as an attractive play in the Email about Cannabis Sativa (CBDS), which by the way looks better than ever and is at a great entry point. Before the power went down I was able to post on Cannabis Sativa and pleased about that as it is right at the starting line now and ready to go and still rated a strong buy this morning.

Now to look at Naturally Splendid, which has shot up over the past week to become short-term overbought at its falling 200-day moving average, as we can see on its 6-month chart below. However, as we also see on this chart, volume has been persistently strong on this rally driving volume indicators steeply higher, a sign that this rally is the start of something bigger, so it may only pause here, or react slightly before continuing higher against the background of a general advance by the sector.


It is when we look at the 15-month chart that we realize that yesterday’s gap higher on big volume marked a breakout from a base pattern that has been forming since last May, and while we may see some choppy action here because of the short-term overbought condition and falling 200-day moving average, volume and volume indicators are strongly positive pointing to a continuation of advance before long, and whilst there is overhead resistance it could power right through it if the sector advances strongly as it looking increasingly likely.


The 5-year chart provides a still broader perspective and it makes two important things clear. One is that this stock is cheap compared to a year ago when it got to 3 times the current price, and especially compared to its 2015 high when it got to 5 times the current price, and the other is that the stock has made no net gains since 2013, despite the prospects for this industry having advanced in leaps and bounds during this period. So there is plenty of upside potential here.


Conclusion: Naturally Splendid Enterprises is rated a buy here and a strong buy on any near-term minor dips, since it looks set to advance quite quickly, initially to the C$0.50 – C$0.55 area. The stock trades in reasonable volumes on the US OTC market, where, as ever, limit orders should be employed, and there are 76 million shares in issue.

When the power came back on at Maund Acres, I made a cup of tea and switched the telly on and had occasion to observe Jeff Sessions, the US Attorney General, being hauled over the coals by some investigative committee engaged in a “witch hunt” over Russia’s alleged interference in the US elections. There are two points to make regarding this. One is that the story about Russia’s interference in the election is a fabrication designed to smear Russia, as part of the Neocon’s Grand Plan to build a case against Russia before they eventually launch a military strike against it, and secondly, if Russia did actually succeed in swinging it so that Hillary Clinton didn’t get elected, it is to be commended for saving us all from the Presidency of a rabid narcissistic megalomaniac who would probably have started a World War by now. They say that “it’s an ill wind that blows nobody a bit of good”, and since Sessions is vehemently anti-cannabis, it will clearly be good for the US cannabis industry if he is swept aside. Having said that, I felt sorry for the poor chap becoming another potential victim of the witch hunt – someone should have passed him a joint – he looked like he could use it – and if he had starting puffing on it, it would have been a great advert for the industry.

Naturally Splendid Enterprises website

Naturally Splendid Enterprises, NSP.V, NSPDF on OTC, closed at C$0.22, $0.16 on 14th November 17.

A final reminder – looks like a great entry point for Cannabis Sativa (CBDS) here.


Posted at 6.55 am EST on 15th November 17.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment or securities advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market technical analyst, Clive Maund is not a Registered Investment Advisor or Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.