- Professional active money management in the Mid and Large Cap universe is a sun setting business model due to the field being overly crowded by the institutional investment community, largely efficient information dissemination, and the emergence of passive strategies comprised of low cost ETFs.
- The future of professional active money management is Micro Cap investing. Professional active money managers can differentiate from their peers, deliver superior performance for clients, and survive the increasingly competitive money management landscape through Micro Cap investing.
- The Micro Cap universe offers greenfield opportunities for talented money managers to manufacture true alpha for the suppliers of capital. The Micro Cap universe makes up only 2% of the entire market by capitalization, but represents nearly 50% of the investible universe.
- The Micro Universe has little to no formal research coverage.
- The Micro Cap universe has historically delivered superior long term performance.
- The Micro Cap universe consistently experiences an outsized concentration of M&A activity.
- Our business – Micro Cap Research – aims to support professional active money managers who are focused on Micro Cap investing through research services that deliver insights, uncover value, and exploit inefficiencies.
May 4, 2018
The Green Organic Dutchman (OTC: GODHF)
To get a brief understanding of the growth projections for the burgeoning cannabis industry, you can take your pick of analysts and their forecasts for the exploding space. Growing from about $8 billion in 2017, Grand View Research is calling for the global market to reach $55.8 billionby 2025. The Brightfield Group predicts $31.4 billionby 2021. Arcview Market Research and its partner BDS Analytics think spending on cannabis worldwide will reach $57 billionby 2027, with $47.3 billion of that generated in North America.
That type of growth is underpinned by the public shift towards supporting legalization of marijuana in the United States and the pledge of Canadian Prime Minister Justin Trudeau to make adult-use of marijuana legal, which is expected in the second half of the year. This has set the stage for perhaps the most anticipated initial public offering in the industry, as The Green Organic Dutchman (TGOD) joins the OTC market today.
When Canada becomes only the second country in the world to legalize recreational cannabis, the market is expected to surge and rival the country’s beer industry. According to Deloitte, the retail Canadian cannabis market will reach $8.7 billionwhen full legalization takes effect, putting it nearly on par with the $9.2 billionCanadians spent on beer in the 12 months ended March 31, 2017.