Morning Trader!
As promised, here it is!!! And trust me this one could have what it takes
to be a BREAK-OUT CHAMP!!!
Montalvo Spirits Inc. (TQLA) made a splash for us last year when traders caught on to its high-end tequila business.
Now TQLA is back on my screen as NEWS of an ideal “synergy” acquisition hits the wire at just the right technical moment!
What’s the perfect supplement to a tequila-fueled bender? Snacks, of course. And what are the hottest snacks around? Those made from hemp.
This morning, TQLA announced that it’s acquired a hemp snack company -- right when the chart looks primed for a bit of a party anyway:
Any stock with that kind of ramp from $0.12 to $0.16 has plenty of spark but now that TQLA is technically a “pot play,” I think the jet fuel has arrived!
Legal hemp has already anointed billionaires worthy of Forbes and prompting global “dot-bong fever” -- now TQLA is part of that.
As of today, TQLA officially owns the Cannabis Beverage Group, which develops and markets cannabis drinks but also hemp protein powder and snacks. (Read more)
Hemp has health benefits like better vegan protein and rare essential oils, but the real selling point is party people want to eat what they smoke.
Other manufacturers have already gotten things like “hemp tortilla chips” into Whole Foods and gotten rave reviews -- why not TQLA?
And what goes better with corn chips than tequila? Add the “hemp” angle and TQLA has the entire party covered now! Let the synergies roll!
Will this deal be immediately accretive for TQLA shares? We already had momentum and open upside here above the 50 MDA.
And the timing couldn’t be better to get reacquainted with this tequila play because Cinco de Mayo is right around the corner!
Tequila sales DOUBLED on the hard-drinking Mexican “holiday” last year -- can TQLA with its highly rated ultra-premium liquor beat the trend? (Read more)
TQLA actually quadrupled its revenue in 2013, so my instinct would be “yes.” Adding hemp to the table can only accelerate the path toward profit.
If nothing else, it should pull hemp-hungry traders to the TQLA table starting today -- and when they see that chart, can they resist a taste?
News, technical momentum, a once-a-year seasonal boost to the fundamentals: TQLA has the trump cards in its favor today!
Now “GET TO THE TABLE” and Let’s see HOW HIGH THE SMOKE WILL RISE!
Let the fun begin!
Michael Reef
