Clive Maund - Fri, Mar 15, 2019

Disruptive Delivery Company Signs Deal for Cannabis Distribution

Technical analyst Clive Maund discusses both the fundamentals and technicals for this company that just signed a cannabis distribution agreement with a Vancouver-based retailer.

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We have big news out on one of our stocks, ParcelPal Technology Inc. (PKG:CSE; PTNYF:OTC.MKTS; PT0:FSE). This is a most promising stock that we first looked at in some detail on 15th February. The company announced just yesterday that it has signed a cannabis distribution agreement with Kiaro, a Vancouver based cannabis retailer. This accords with the company's business expansion strategy for Canada as set out on the map from the company presentation shown below.

And that's Canada—the company also plans to expand into the U.S., and with respect to this we have additional good news out a couple of days ago from one of ParcelPal's important business partners, Choom Holdings. The news relating to Kiaro linked above builds on an earlier similar agreement with Choom Holdings made last Fall. This is going to be big business because a lot of customers are not going to want to go down to a store, especially for this kind of product—they are going to want home delivery, and before the advent of ParcelPal cannabis delivery was expensive and antiquated, with it sometimes taking more than a week for product to arrive. ParcelPal delivers within the hour, unless you live out in the boonies. Choom is expanding rapidly and just a couple of days ago its stock surged on news that it is entering the U.S. market with an agreement with a New Jersey retailer.

This is big news for ParcelPal because Choom has, it is believed, an exclusive agreement for delivery of its products by ParcelPal, whose business model suits Choom perfectly, as it wants its products delivered efficiently, quickly and safely to its customers. Here it is worth pointing out that ParcelPal is in discussion with some of the heavyweights in the business like Aphria, Canopy Growth Corp and Organigram (it is not known specifically which companies) who are likely to select ParcelPal to deliver their products for the same reasons as Choom, although they are obviously on a much larger scale. Here's what happened to Choom's stock on the news that it is expanding into New Jersey.

As if all this wasn't enough, ParcelPal appointed respected and influential Brian Storseth as chairman of the board of the company on 27th February. Storseth was a figure in the Canadian Parliament.

Now to review the latest charts for ParcelPal: the annotated charts below tell the story, but there are two main points to note. The first is that the 3-year chart shows that ParcelPal has a marked tendency to spike dramatically. The second is that the 6-month chart shows that it is now in position to do just that, with a Cup & Handle base having now completed and the bullish volume pattern and rising accumulation line suggesting that breakout is now imminent. So we stay long and ParcelPal looks a stronger buy than ever here. ParcelPal trades in reasonable volumes on the U.S. OTC market.

ParcelPal Technology Inc. website, PKG.CSX, PTNYF on OTC, closed at C$0.31, $0.227 on 13th March 19.

Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click below for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with ParcelPal.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of ParcelPal Technologies, a company mentioned in this article.

Charts provided by the author.

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