Small Cap Growth Isn’t Slowing, Here’s Proof
NEW YORK, NY / ACCESSWIRE / June 2, 2016 / There’s quite a lot of talk about small caps not delivering the sort of growth that they used to over the years but the truth is that many investors who hold this belief are simply not paying attention.
Take Galena Biopharma, Inc. (GALE) for instance. The biopharmaceutical company which focuses on developing and commercializing oncology therapeutics, has been having a fantastic last 12 months. The stock has climbed from lows of .59 to trade as high as 2.19 recently. This level of valuation growth comes as the company is making good progress with its NeuVax™ product which recently received fast track designation from the FDA. [1]
Another small cap growth story is Ocean Power Technologies, Inc. (OPTT). OPTT develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in the United States. Recently it rallied as high as 294%, shaking off doubts after a PB3 PowerBuoy® lease agreement with Mitsui Engineering and Shipbuilding which is valued at approximately $975,000. [2]
How’s that for diversity? Pharmaceuticals and energy generation are as disparate as you get in an investing portfolio but just to prove the underlying spread of small cap growth, here’s another sector that offers up some proof.
Cannabis is one of the biggest growth sectors right now and the small cap growth story which exemplifies this is Blue Line Protection Group, Inc. (BLPG).
BLPG provides armed protection, financial solutions, logistics, and compliance services for businesses engaged in the legal cannabis industry in the United States. It offers asset logistic services comprising armored transportation services; security services, including shipment protection, money escorts, security monitoring, asset vaulting, VIP and dignitary protection, and others; financial services, such as handling transportation and storage of currency; training; and compliance services. [3]
BLPG’s plethora of services is very much a feature of the wide scope of demand that is being generated by cannabis companies. Of course, the most substantial offering from BLPG and any analysis of the current state of the cannabis industry will show why.
>> Could This Undiscovered Cannabis Play Be Ready To Explode? <<
The cannabis industry remains largely cash-based and any given day hundreds of thousands of dollars in cash is being generated in sales. Since most banks refuse to handle the cash generated by cannabis companies, demand for services offered by the likes of BLPG has been growing at an alarming rate. [4]
Demand for these types of services is slated to grow even further due to the increasing number of US states that are considering legalizing cannabis in some form. Currently four states (Colorado, Washington, Oregon, Alaska and Washington, D.C.) have passed laws legalizing the sale of cannabis for recreational use. Additionally, 24 states now allow the sale of cannabis for medical purposes and include markets such as New York, Montana, Maryland and Vermont. The most recent addition was Pennsylvania which passed laws in April 2016. [5]
Nationwide sentiment for legalization is growing faster than lawmakers can establish what to do with the drug. Recent polls show that more than 56% of Americans believe the use of marijuana should be legal and lawmakers are now starting to wake up that wholesale reality. [6]
Blue Line Protection Group, Inc. (BLPG) has been building up its capacity to handle the potential demand for its services. The company announced $500,000 in investment capital from Hypur Ventures, L.P. mid-May 2016. BLPG said in the release that an additional $500,000 may be invested at the discretion of Hypur Ventures. [7]
BLPG has also taken steps to beef up its software compliance platform and recently announced that it has become certified as an integrated software vendor (ISV) of Hypur, Inc.
“As a Hypur ISV, Blue Line expects accelerated growth across its suite of compliance investigations services, with increased penetration into financial institutions seeking integrated client verification assessments,” said the release. [8]
>> See Why This Cannabis Stock Could Be The Biggest Play Of 2016 <<
A major expansion of BLPG’s licensing services division capped a strong period of growth and expansion for the company. In confirming the expansion, BLPG affirmed that, “Its clients require integrated and well-researched security and transportation plans to help ensure maximum return on investment for their business partners. BLPG’s licensing team thoroughly researches each state’s licensing and application requirements, and we work with our clients to develop customized security, transportation and physical surveillance strategies to help increase their odds of winning new licenses.” [9]
Enlightened investors already know what has been illustrated here; the small cap growth story is far from slowing. If anything, it provides the biggest opportunities for the growth investor and the companies outlined offer up the proof and confidence needed for action.
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[1] http://finance.yahoo.com/news/galena-biopharma-receives-fast-track-110500370.html
[2] http://finance.yahoo.com/news/ocean-power-technologies-enters-first-123000805.html
[3] http://www.bluelineprotectiongroup.com
[4] https://www.rt.com/usa/340416-legal-marijuana-businesses-banks/
[5] http://www.ncsl.org/research/health/state-medical-marijuana-laws.aspx
[6] http://www.cbsnews.com/news/marijuana-use-and-support-for-legal-marijuana-continue-to-climb/
[7] http://finance.yahoo.com/news/blue-line-protection-group-secures-115726340.html
[8] http://finance.yahoo.com/news/blue-line-protection-group-extends-120000613.html
[9] http://finance.yahoo.com/news/blue-line-protection-group-expands-122140196.html
SOURCE: InvestmentResearchReport.com
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