DigiPath Carves out Room to Run!
This HOD (so far) of $0.95 marks a 2 day 18.75% rally since yesterday morning and more importantly action could be read to start picking up at any moment heading into the afternoon. If this continues I think there could be even more potential for this rally to keep going strong.
After hitting lows earlier this month, DigiPath has surprisingly been on a great rebound over the last few days, volume has picked up, and the spread has begun to tighten right up. Momentum is starting to build and we are very close to seeing a full blown breakout in my opinion. Let’s not forget that earlier in the year this stock was trading 500+% higher than it is right now.
But what’s so special about DIGP? What catalyst exists to ignite such a monstrous move? Well, not very long ago this company raised an astonishing $8.2 mil in order to finance its digital pathology solutions, cannabis education curriculum development, and to explore new lines of cannabis businesses. In other words, management raised over $8 mil to enter the rapidly growing cannabis industry! That’s more capital than most other MJ companies have as a market cap!
If DigitPath sounds familiar to you, it’s most likely because a recent Bloomberg article that discussed some of the top stocks in the MJ industry as it stands today. DigiPath representatives were in attendance at the prestigious Milken Conference where they demonstrated the company’s plans to train people to work in pot-dispensaries and become the new baristas of weed, among other things that the company is involved with as you’ll read below.
Currently, DI G P is a provider of digital pathology solutions and opted to expand into the rapidly growing cannabis industry in early 2014. Obivously management and many investors see the earning potential in this rapidly growing industry, and plan to capitalize on it.
Just look at the stats for the MJ industry:
The U.S. cannabis industry grew 64% in 2013 and is expected to reach $2.34 billion by the end of 2014, according to ArcView Market Research.
So far, 23 U.S. states and Washington D.C. have legalized medical marijuana, while Colorado and Washington State have legalized recreational marijuana.
Current trends are poised to continue in the November general election with several outstanding ballot measures in place for additional state licensing.
More importantly is that the company has even raised upwards of $8.2M in order to finance its digital pathology solutions, cannabis education curriculum development, and to explore new lines of cannabis businesses…the company is not taking this lightly and has put its money where its mouth is.
“We believe that the increased availability of and demand for medical cannabis – especially as states and the federal government move to ease laws around the cannabis industry – has created unprecedented growth opportunities,” said DigiPath Inc. CEO Steve Barbee. “Our revenues are increasing, we have capital o hand, and we are focused on expanding our infrastructure and building shareholder value.”
DIGP recently announced a plan to diversify and expand its line of services to support the medical MJ industry specifically. By developing innovative digital-pathology solutions for private and academic institutions DigiPath will be able to support the management of information generated from digital slides for use in education, diagnostics, publications, and research. DigiPath’s PathCloud(tm) is the first and only high-performance network engineered exclusively to support telepathology. This line of business generated $217k in sales for the company during the quarter ending June 30, 2014.
To construct the initial business plan for its education and training division, DigiPath has enlisted the services of Oak Tree Educational Partners, a holding company that acquires and manages educational training centers.
DigiPath has also overhauled its management team to be better equipped for future growth as it increases the breadth of its portfolio. Changes include appointing lab and imaging industry veteran Steve Barbee as Chief Executive Officer and adding medical-device startup and turnaround expert Joe Tanner as Executive Chairman of the Board.
The company has received incredible notoriety for its current operations and management sees a major opportunity in the medical MJ space for industry leading testing procedures and protocols to ensure accurate and consistent assessments of cannabis based products. The company’s current trading level has settled out at a support around the 0.90 mark and a rally back to previous $6 highs could be a game changer. For these reasons, we’ve begun to closely follow DigiPath, Inc.