Rally On, Traders!

By this point you know how fast the “green revolution” is rolling across the map. Just pull up a chart of a stock like Aurora, Canopy Growth or Aphria to catch the contagious buzz radiating down from Canada.

Or if you’re looking for something fresher and less played out, there are plenty of next-generation players like Massroots (OTC:MSRT) waiting in the wings.

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? MSRT is new. They aren’t chasing the same old cookie cutter takes on the green theme that made investors cheer last year.

And that’s really the key to this little company. It’s about differentiation, standing out from the pack of me-too green players that only an industry expert can tell apart without a scorecard.

You see, 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 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.

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.

You know about the blockchain, 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 blockchain 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 blockchain” 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 blockchain 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 blockchain 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 blockchain 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 crypto currency. In the future, it might not matter. All the blockchain 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 blockchain 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 blockchain 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.

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!