Past Champ: 2 Key Catalysts Could Send *TCHC* Share Prices Vertical In The Short-Term
This Low Float (6.22Mn Shares) Idea Needs Your Focus
Tech Central Inc. (TCHC), a past intraday champ, requires your immediate focus for today's trading session.
Two short months ago, I released TCHC for the first time on September 18th after the market closed.
Appearing to inch towards a possible breakout, I believed it to be in your best interest to get this stock on your radar.
Then, on the following morning, TCHC erupted.
Catching fire out of the opening bell, TCHC ran 40.9% intraday from an open of $.40 to a high of $.62.
Following this company closely, I now think the potential for another breakout is present. Here's why:
TCHC Catalyst #1 - Important USDA Announcement
Just a few weeks back, the United States Department of Agriculture (USDA) provided the burgeoning C-B-D ("CB") market with major news that could boost its sales even higher:
USDA Announcement Allows CB Industry To Grow
NEW YORK, NY / ACCESSWIRE / October 30, 2019 / Soon Farmers across the country will be able to grow hemp under the auspices of the U.S. Domestic Hemp Production Program, announced October 29 by the United States Department of Agriculture (USDA).
"At USDA, we are always excited when there are new economic opp's for our farmers, and we hope the ability to grow hemp will pave the way for new products and markets," said U.S. Secretary of Agriculture Sonny Perdue. "We have had teams operating with all hands-on-deck to develop a regulatory framework that meets Congressional intent while seeking to provide a fair, consistent, and science-based process for states, tribes, and individual producers who want to participate in this program."
The new program would allow farmers to grow hemp in every state and on reservation land.
Requirements for licensing, records maintenance, testing for T-H-C levels and the disposal of plants that do not meet the requirements will be established by the rules of the program.
Hemp production has resurged in the U.S. because of an increase in demand for products containing CB oil, a side product of hemp, which is used for relieving pain, anxiety and the effects of certain medical conditions. Clinical trials have shown CB to be effective in the treatment of epilepsy.
Included in the program will be the enactment of the 2018 Farm Bill, which reclassified hemp and allowed for its growth as an industrial product.
Hemp can be grown for fiber, processing (the extraction of plant resin), grain and seed according to the new government regulations.
Sales of CB products are expected to exceed $20Bn in the U.S. by 2024, according to a financial study. CB product sales in dispensaries shot up to 11 percent in 2018, a rise of six percent from 2017.
"We're witnessing CB maturing from a can-na-bis sub-category into a full-blown industry of its own," said Roy Bingham, co-founder and CEO of BDS Analytics, a firm that provides data to the can-na-bis industry. "Our growth forecast for the CB market, across all distribution channels, predicts a compound annual growth rate of 49 percent by 2024. This is a great opp. for all involved, but it means the road ahead will include decisions that need to be informed by the best possible data."
In a response to this game-changing news from the USDA, TCHC President, Joseph Lewis, had this to add:
"We decided to become a part of the CB sector because of the potential growth. The brand we have started, Better Mind CB, has been growing beyond our expectations. We look forward to the government agencies adopting a positive view towards CB and can-na-bis. Developments like this will only help the industry to thrive. As we grow our product line we look forward to future announcements that will help the sector."
These comments from the company president regarding growth of the company's product line are why this 2nd catalyst could help send share prices soaring for TCHC.
TCHC Catalyst #2 - Pet Consumption Of CB Products
U.S. pet owners are estimated to have spent over $70Bn in 2018 on pet supplies, treatments and veterinary care according to the American Pet Products Association.
Last year, consumers spent $48Mn on hemp-derived CB for their pets. The Hemp Business Journal estimates that number could grow to $298Mn by 2022.
Here's why those numbers create a fascinating scenario for TCHC's latest move:
TCHC Begins Selling CB For Pets
LOS ANGELES, CA / ACCESSWIRE / November 4, 2019 / Tech Central (OTC PINK:TCHC) ("TCHC") today announced that Better Mind CB has received the first orders for it's Pets CB Line tied to it's retail partnership with Mountain High Products.
Company president Joseph Lewis stated, "We're pleased to announce we've received our first order for our Pets line from Mountain High Products Inc. Terms include the distribution of our Better Mind CB Pets Line at several retail outlets in Nevada and Southern California as well as online."
In 2019, TCHC launched its “Better Mind CB (BMC)” line of products.
BMC products are already gaining traction as evidenced by a recent deal with Mountain High Products.
The company's other non pet products include a high-end CB line using proprietary formulas for sleep, anxiety, inflammation and stress.
Tech Central plans to market BMC throughout the U.S. and Canada, while at the same time, continuing to expand its current product line.
TCHC expects to start generating revenues related to its BMC product line during the current quarter-Q3 2019.