Rally On, Traders!

Green stocks. By now you already know the big names at the heart of what's now a $194 BILLION market opportunity as state after state and now whole countries legalize products that spent decades in the shade. Aurora, Canopy Growth, Aphria, Tilray, the Cronos . . . they've come a long way in a real brief span of time.

But can you tell them apart? And have they already given shareholders plenty of thrills on the way to billion-dollar behemoth status? Some of us are already bored with the me-too giants and looking at more unique next-generation players like  Massroots (OTC:MSRT) to take us into the future.

Unlike the Canadian giants, startups like MSRT are in the very early stages. Similar huge transformative potential . . . but in this case available for an opening ante below $0.10 as I write this.

How is that even possible? Isn't Tilray practically a $70 stock? Sure. MSRT is new. They don't follow the crowd by reinventing the green wheel. If you're just looking for someone growing as much raw plant matter as possible, there are already $70 stocks for you.

But those stocks are old and live in a commodity world. The bigger they get, the more plant matter they produce to meet demand. If demand keeps going up exponentially, great. Otherwise, rising supply depresses prices. Supply and demand!

You need a differentiated approach to survive that race to the bottom. And that’s really the key to what little MSRT does and why it already stands out from the pack of me-too green players that only an industry expert can tell apart without a scorecard.

Check the latest headlines HERE. MSRT recognizes that green retail is getting “mature” now after years of being legal in the right states. This is a multi-BILLION dollar business crowded with eager hopefuls with more ambition than acumen.

After all, in the early stages all you needed was cash, a license and a storefront to open a store. Now that there are hundreds of stores in some states, ambition isn’t enough any more.

You need to think like an entrepreneur to make it work here in 2019. That’s where MSRT comes in. They’ve developed all the modern retail tools that store owners in other categories have been using for years.

Tools like loyalty programs. It seems like such a tiny thing, giving repeat customers perks and points. Turns out the clubs have probably saved the airlines over and over . . . it’s made them BILLIONS, literally a profit center.

MSRT has a loyalty program. They call it the WeedPass. So far 100 stores have joined the network in Denver and Los Angeles. No wait, that should be 140. The number actually jumped as much as 40% between press releases, a three-week period.

Yeah, 40 stores in 3 weeks. That’s how fast this program is spreading. The CEO is confident they’ll add “several hundred by early 2019,” which is, you know, NOW. In that scenario, expect a lot of news from MSRT on this front over the next few weeks.

That gets the clock ticking if you want to participate before the word gets out there on Wall Street. After all, this is finally a differentiated play on the Green World. Not just a me-too retailer or someone with oils or a farm somewhere. Finally a way forward.

And it’s definitely a way forward. MSRT wants to charge participating stores for membership in the program. Want to offer your best customers discounts and freebies? Pay a fee. Want to keep your customers from going elsewhere? Pay.

Right now the deal is simple. Spend $50, get a free movie ticket. Now that the program has gone digital with a points-based program in the works, flexibility increases. 

Say you’ve got a hot market and a consumer base that, let’s face it, doesn’t have the strongest attention span all the time. It costs more to attract these people. Retaining their loyalty costs even more.

It’s a kind of “frequent flyer” loyalty program where if someone in the right state spends enough, they get free movie or concert tickets. You know the target audience LOVES the nightlife. And where would they rather shop? Someplace that gives a free ticket or somewhere that doesn’t?

Of course it isn’t pure altruism. Say MSRT buys those tickets in bulk quantities for $5-$10 apiece. The dispensary buys them for $15-$20. It hands them out to anyone who spends $50 or more.

The shopper is happy because free show. The dispensary is happy because it spent $15 to take $50 in sales from competitors. And MSRT shareholders can cheer because at least $5 of that $15 was as close as it gets to pure profit.

Yeah, you read that right. MSRT found a way to turn as little as $5 into as much as $20. Classic entrepreneurial genius. But it’s just one of the ways this tiny start-up is “disrupting” the green industry.

Take the supply chain. Everyone in this industry needs to buy stuff. They have to pay cash for regulatory reasons. Because most of them are very small entrepreneurial businesses, they don't get modern merchant terms. 

MSRT looked into the problem and bought a group buying network, basically a way to let these scattered merchants pool their buying power and get better pricing. There's close to 10,000 licensed players in this business in the U.S. alone. That's a lot of pool!

Early stages now but the network generated $275,000 in business back in January. Terms of the acquisition factor in revenue results as high as $7.5 million in the foreseeable future. This could be big.

After all, MSRT is still a startup itself, barely $10 million market cap as I write this. These numbers can be disruptive. Down at this scale, it's a tidal wave of cash. Even if the network only repeats last year's $1.5 million in revenue, it's a real game changer.

And that's just the beginning. You know about the 'CHAIN, right? It’s the technology that turns computing cash into money for crypto currencies like BTC, etc. Gurus from places like Goldman Sachs flip for it. They say it’s one of the biggest booms on the horizon.

So MSRT has a chain system. In theory they can use it to create "virtual" payment systems that don't touch the dollar system. I think that's the end run goal here.

Marketing cannabis on traditional social media is hard enough. Most conventional banks won't touch you. You take cash, pay your vendors in cash, even pay the IRS in cash. It's a pain.

But modern technology . . . the kind Goldman Sachs sees changing the world and the kind MSRT has . . . can make all the pain go away. There’s potential here for huge relief for the dispensaries and the suppliers. And that relief is a huge opportunity for MSRT.

Great financial institutions have historically been born when someone figures out how to move money around an industry for the first time. J.P. Morgan made the railroads happen. The Rockefellers kept Big Oil greased. And the Rothschilds were the moneybag godfathers behind modern mining.

If MSRT is serious about “leveraging the chain” for the rising cannabis industry, we could be on the brink of another Gilded Age in the here and now. That’s naturally an explosive scenario for investors to contemplate . . . who wouldn’t want to be in with one of those great bankers on the ground floor?

Even the silent partners in those ventures still have “old money” generations of descendants later. We’re talking REAL wealth here.

And that seems to be where MSRT wants to take this. They’ve talked about “smart contracts,” which means tight regulatory compliance and control. If a transaction doesn’t meet state rules, the chain automatically enforces.

They’ve talked about seed-to-sale tracking of all product, guaranteeing compliance at every stage and giving industry players a little peace of mind at last. In simple English, if there’s a bit of chain code attached to every bud, it’s the best inventory system ever invented.

Nothing gets lost. No “shrinkage.” The regulators can see where everything is. High operating costs in the industry go DOWN. Profit margins expand.

Of course chain can bypass money as well. When transactions are guaranteed secure by force of computing power, there’s no need for banking or credit cards. Third parties and middlemen drop out.

Pay in kind. Pay in labor. Pay in digital currency. In the future, it might not matter. All the chain needs to know is that ownership of the product transfers in exchange for whatever the parties agree is a fair price.

In the meantime, the technology works to support customer loyalty programs like the one that made those Hooter's restaurants (and their shares) go crazy back in early 2018. Remember that one?

Everything is electronic. The chain runs the accounts. When the rewards points add up right, the customer gets a prize. Simple, easy, lucrative.

It's how any emerging market category gets credibility and scale: discounts for referrals, incentives for influential reviews, free samples in return for visibility.

MSRT is at the heart of that category. They're the social media network that makes it happen, bridging consumers with the retailers, brands and strain reviews they need to make informed decisions.

Traditional media players still have a hard time with these companies, Forbes says. As a result, just the ad revenue piece here is somewhere between "blue sky" and "green field" opportunity as the industry grows.

And that's where MSRT gets started with the technology piece. It’s got its own product review portal, 1 million users and counting. Think of it as green Yelp. It  supports community reputation and feedback, which is important to the business model. People who contribute reviews and hang around on the forums get social credit they can "spend."

The chain can account for that credit. Earn enough credit, win rewards. The rewards system takes care of that. WeedPass already has the tickets.

It starts with a new idea. Let me show you the Big Three charts in this space and then I’ll show you MSRT. Here’s the usual suspects, all trading alike:

And here’s MSRT. Similar arc in the last few months, but look at the SCALE on the price per share. When this one’s moving right, it’s truly unique. The lines are converging now . . . get ready for the next decisive twist. The last one unleashed 35% in an uninterrupted burst!

If you want to invest in the Green World, you can go with your favorite cookie cutter. Or you can throw your hat in with the company that’s helping me-too retailers establish a unique and value-added presence.

Who doesn’t like value? MSRT. It pays consumers rewards. It pays off for retailers. And from that growth curve, it's got the power to pay off for investors as well.

Ticker MSRT

MSRT is listed on the Over The Counter Markets

The company’s ticker is MSRT and is available through most online brokerage firms, for example:

Happy, Happy, Happy Trading!