We’ve been saying for months that OWCP was grossly undervalued considering everything they have in the pipeline. The go-to comparative “piece of evidence” to support my claim is the fact that AstraZeneca sold off its troubled Psoriasis drug, which was linked to suicide as a side effect, for $445 million. So, why would a troubled drug that causes thoughts of suicide be worth $445 million if a (quite likely) superior product that was said to be producing “very encouraging results” at it’s efficacy study (talked about in this 8K), which caused OWCP to want to extend its “size and scope” of said study, NOT be worth at least that?
It’s my opinion that OWCP will rise to a minimum $500 million market value once this product has completed its study and the company puts out an 8K or PR talking about how wonderful it is. That’d be roughly $3.35 – $3.50 per share. (Not taking into account the other products in the pipeline with the patents pending.)
OWCP saw a 36.57% increase on Friday (February 17th, 2017) and closed at $0.915, possibly/likely caused by the discovery that they were included in the first ever Cannabis ETF, which was submitted to the SEC on February 16th, 2017 by ETF Managers Group. (If you’re unfamiliar with ETFs, you can read about them here.) ‘Triple9’ on iHub had listed several reasons off the top of his head as to why being listed in this ETF would be good for OWCP — More of the float will be locked up as the Trust buys shares, trading volume would increase, more exposure for the stock amongst other serious investors, decrease in volatility, and new investors who can’t buy OTC traded stocks.
Another plus for the Medical Cannabis industry was the formation of the first-of-its-kind ‘Congressional Cannabis Caucus‘ on February 16th, 2017. Seems like a step in the direction of more legalization?
Finally, OWCP put out an official PR about presenting at Lyons Capital’s “Wall Street Conference” (where OWCP is listed as a ‘Diamond’ sponsor, by the way) on March 1st in Boca Raton, FL. OWCP Advisory Board member, Jeffrey Friedland, is giving a 30 minute presentation. A brief description of this conference: “The WALL ST. Conference is the premiere conference in the venture capital arena and Small Cap marketplace. The most senior and elite Wall Street professionals attend this conference. Industry leaders from the hedge fund, investment banking, and private equity worlds, as well as sophisticated investors, all attend the WALL ST. Conference every year to discuss significant trends in the industry.”
Side Note: Aside from all this new exposure to Wall Street, remember, there are many brokers/firms that cannot buy stocks under $1.00, $2.00, or even $5.00. I experienced this first hand with Edward Jones, who has a $2.00 minimum. So, the theory/thought is once OWCP surpasses $1.00 — many deep pockets will jump in. Once the share price surpass $2.00 — even more deep pocket investors will jump in. The popular opinion is OWCP will rise to $2.00 very quickly because of the expected volume. In fact, Friday’s volume was 6.7 million and the 10-day average prior to Friday was 1.8 million. Bigger volume usually means bigger daily gains.
Hopeful Updates/News for February & March
Now that we’ve gotten through the new and exciting developments that could lead to far greater volume, let’s talk about some possible updates OWCP may (hopefully) slap down on the table — keeping in mind I have no idea where they’re at with current progress:
- Topical Cream Uses: As mentioned and linked above, the 8K from February 2nd talked about extending the size and scope of the study. The other interesting choice of words that leads to our speculation is “for the treatment of skin conditions generally and psoriasis specifically”. Skin conditions? Plural? So, this cream we thought was for Psoriasis may very well be for multiple skin conditions. Remember, OWCP announced the addition of Dr. Rozenblat within a week of the news that they’re extending the size and scope. Dr. Rozenblat has over 15 years experience in research & development within the field of dermatology and products related to the field. (By the way, OWCP never did dive into the specifics about having IRB Approval – even though many of us felt we knew they had to have IRB Approval for the study to commence at Israel’s largest hospital. With many iHub users still confused/not convinced IRB approval was granted – this is a great PR opportunity, if you ask me. It seals the deal for many folks on the fence.)
- Completion of Study: OWCP mentioned in their video presentation (at 4:45) and in an 8K about the Topical Cream study to be completed by March 2017. Upon completion, we would expect a PR or 8K talking about those previously mentioned “very encouraging results”.
- Topical Cream Launch: Not long after they mention the study completion, they say Market Readiness is expected Quarter 2 of 2017. Quarter 2 starts on April 1st, of course. It’s possible we’ll see a PR with a possible product launch date by end of March.
- Multiple Myeloma: We haven’t heard anything about this research since the Annual Shareholder Letter, where they talked about proceeding with a pre-clinical, IRB approved protocol on mice to duplicate their previous good results. Upon good results, they would have scientific justification to proceed with human trials.
- Sublingual Soluble Tablet: Also not mentioned since the Annual Letter is the proprietary, cannabinoid-enriched sublingual tablet — which helps administer medical cannabis without having to smoke. This product may be used for treatment of pain, migraines, multiple myeloma, Post-Traumatic Stress Disorder (PTSD), and fibromyalgia.
- Consultant Contracts: If you saw the Investor Presentation (PDF) from January, you may have noticed Page 11 says they’ve signed 3 agreements to consult in the United States. Naturally, we assume agreements equal revenue.
- Wall Street Conference: It’s not impossible for more joint ventures to come from this conference. Expanded distribution deals? More investment funds to cover the expenses of additional clinical trials? Who knows.
There’s so much in the near-future pipeline. It seems so very likely that OWCP could be starting it’s marathon of a run as soon as next week, if the momentum from Friday continues on after the 3 day weekend.
If you’re new to this stock, allow me to point out AXIM ran from $0.395 (on 10/21/16) to $19.80 (on 1/12/17) in 2.5 months with news of their product (a chewing gum for IBS) making progress towards market readiness. Also, CNBX (another Israel based Cannabis medicine company) has started to make a run from $0.50 (on 12/21/16) to $4.00 on Friday (2/17/17). Many folks I talk to think CNBX isn’t even close to done with it’s run.
If you like the excitement of technical data and predictions based on that data, follow @DDRANTE on Twitter. He was relatively spot on last week when he had a target of $0.787 – $0.95. (Yeah, we closed at $0.915, but the High of Day was $0.94.) His targets for next week make me borderline giddy — and technical data doesn’t really take into account juicy PRs and 8Ks that may (or may not) be released.
People are still asking my opinion about whether they’re “too late” to get in here. While I refuse to answer that question directly, since there’s still risk involved with any type of investment that has the potential for reward, I think my predicted Market Value increase by Quarter 2 should help answer that question. Investing at $1.50 would still result in beyond 100% returns within months — if I’m right. That’s the thing though… I don’t own a crystal ball. I’ve just read the available facts and updates and have a strong feeling of where OWCP is heading. I then consider the runs other similar-industry companies have had recently and add in great data from people like Bud Rante to make my assessments.