A Recent USDA Announcement Could Give *TCHC* Tremendous Upside Potential To Score Big In A Booming Industry
This Low Float (6.22Mn Shares) Previous Champ Requires Immediate Attention
Back on my radar for 11/21's session is Tech Central Inc. (TCHC), a previous champ that looks like it could be ready to burst again.
Back on September 18th, I released this profile after the market closed as it appeared inching towards a potential breakout.
On the morning of the 19th... It happened.
Running 40.9% intraday from an open of $.40 to a high of $.62, TCHC delivered the breakout I thought it was capable of providing.
Now, here's why I think it could be lining up for its next potential breakout.
Key Catalyst #1 For TCHC - Key USDA Announcement
Only a few weeks old, this recent announcement from the United States Department of Agriculture could help drive of C-B-D ("CB") sales through the roof:
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."
This could be a true game-changer for the CB industry and future market outlook.
The USDA's announcement had TCHC President, Joseph Lewis, share this sentiment:
"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."
Speaking of growing the company's product line, that leads into catalyst number 2.
Key Catalyst #2 For TCHC - Selling CB For Pets
According to the American Pet Products Association, U.S. pet owners are estimated to have spent over $70Bn in 2018 on pet supplies, treatments and veterinary care.
In 2018 alone, consumers spent $48Mn on hemp-derived CB for their pets. The Hemp Business Journal estimates that by 2022 that total will grow to $298Mn.
That's what makes this recent TCHC announcement so exciting...
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."
This year, 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.
Tech Central expects to start generating revenues related to its BMC product line during Q3 2019.