Good Morning, Trader!
Discovery Minerals Ltd. (DSCR) is active in the gold and mining technology fields but its business lately has shifted in a greener direction.
Now that industrial cannabis is legal, DSCR sees opportunity knocking much LOUDER in the hemp-to-fuel business! (Read more)
Of course with 1.3 BILLION DSCR shares on the market the price action is more than a tad “diluted.” But check out that 1/5 cent-a-share chart:
Remember, it’s not the absolute price so much as the speed at which the % points stack up -- and DSCR seems to be in scoring position now.
The upper DSCR trend has come down a long way from a “lofty” $0.0035 while a relatively firm floor has set up at barely half that price.
Even Tuesday morning’s wiggle to $0.0021 gave traders 16% in upside! Multiply by enough shares and that’s a nice win!
But while technicals can be nice in the here and now, it’s the story that shows the most promise for getting DSCR up and out of the basement.
DSCR aims to be a vertically integrated cannabis producer. It’s targeted the land, the licenses and the talent to grow its own “crop” this summer.
DSCR is putting its farm in Canada. North of the border, land devoted to hemp has been generating about $8,000 an acre in exports so far. (Read more)
Once its 100-acre plantation “buds,” DSCR is already talking to dispensaries to buy the medicinal-grade product and generate cash that way.
But that’s where the business model gets really interesting! After stripping the leaf from its crop, DSCR is left with oil-rich seed and cellulose-rich shrubs!
Turns out hemp is worth 4 times as much woody fiber per acre as trees and that pulp can be cooked into ethanol just like corn or rye. (Read more)
As you know, ethanol can run cars as well as cocktail parties, so squeezing it from hemp instead of food crops can rock the world! (Read more)
DSCR has an exclusive license to run its hemp-to-ethanol system in North America. They should hear from Canada soon about planting their crop.
Sure, share are under $0.002 now. But as the growing season starts, I expect DSCR to generate some “buzz” and maybe turn its chart around.
And in the meantime, hey, maybe it’ll give us a little ride on the technical front. What more do you want for 1/5 penny a share?
See you soon!