The Global Lockdown of 2020 Has Changed the Way Consumers are Buying Pot – and Namaste Technologies (TSXV:N) (OTC:NXTTF) is Seeing Exponential Growth


While the global lockdown of 2020 has caused unprecedented disruption to countless businesses — the most heavily impacted being those that operate in a brick-and-mortar model — e-commerce businesses and companies that have pivoted to become online-only are set up to not only survive through the lockdown, but to thrive in the years to come.

While we have seen long-established brick and mortar businesses such as Neiman Marcus, Hertz, JCPenney, and Brooks Brothers declare bankruptcy in the face of the lockdown, online-only businesses that are making goods and services easily available to customers who are stuck at home have recorded record-breaking revenues during the lockdown. All you have to do is look at the stock price of companies like Amazon (up 84% YTD), Zoom (up 340% YTD), Netflix (up 62% YTD), and PayPal (up 89% YTD)1 to see that online-only is the way forward.

The Numbers Don’t Lie: Consumers are Buying More Pot

The health crisis may have put airlines and restaurants in jeopardy, but it has seriously helped the weed industry. As you can see from the chart above,2 pot sales have seen some significant spikes over the last few months, which is likely due to provincial governments in Canada designating pot dispensaries as an “essential business” and allowing them to remain open during lockdowns.

Overall, pot sales rose sharply early in the lockdown, reaching all-time highs nationwide, as consumers were eager to stockpile weed in the same way they were hoarding toilet paper and canned goods. In fact, the province of Ontario reported that online pot sales increased by as much as 600% at the beginning of March.3

But interestingly, as the lockdown persisted, pot sales continued to rise. What changed? Put simply: consumer spending habits. Overall, data has shown people have not only been buying more weed during quarantine, they’ve also been spending less per unit price — in other words, they’ve been buying in bulk. This could be a reflection of consumers’ concerns about long-term job security in the wake of the current health crisis.

The Demand for Pot Has Gone Digital

In other lockdown trends, more people have started buying their weed online. Not surprisingly, despite pot shops remaining open, customers are now more likely to shop for and purchase their weed online, saving them the hassle of long lines and potential exposure to the virus. In this market — where people are buying more weed more often and shopping online is the preferred method of purchase — it’s e-commerce platforms rather than pot brands themselves that will fare the strongest.

Why? It all comes down to margins. Many weed companies are focused on the production and cultivation of weed and weed products. This is a race to the bottom as prices erode due to increasing competition and margins are squeezed due to heavy overhead costs associated with running and maintaining cultivation facilities. Companies keeping their overheads low while increasing sales volume are seeing huge growth – not just in revenue, but also in margins.

The Undervalued E-Commerce Pot Platform That’s Seeing Explosive Growth

One undervalued company disrupting the market with an end-to-end online pot marketplace is Namaste Technologies (TSXV:N) (OTC:NXTTF), which has billed itself as your everything weed store. The Canadian company is the online marketplace for all things pot, operating as a “one-stop-shop” for both medical and recreational customers’ weed needs through their highly sophisticated e-commerce platform, CannMart.

Namaste Technologies has a suite of proprietary products that help its customers go from a remote medical consultation via their subsidiary NamasteMD, to being able to purchase products and accessories through their leading online platform, CannMart. provides customers with a diverse selection of hand-picked products from a wide variety of federally-licensed producers, all on one convenient site. Impressively, orders are delivered within 2-3 business days in most provinces, and within 24 hours in the Greater Toronto Area. In short, Namaste Technologies allows customers to determine which strains and products are right for them, compare prices, products, and brands, and purchase their orders for delivery – all in one platform, and all without having to leave the comfort of their home.

Strong Management, Strong Results (TSXV:N) (OTC:NXTTF)

Successful companies tend to possess common traits, and one of those traits is a strong management team. Namaste Technologies (TSXV:N) (OTC:NXTTF) certainly has that ground covered. Branden Spikes is the Chairman of Namaste Technologies, bringing his wealth of knowledge, expertise, and experience from previously working as the CIO for Elon Musk at Zip2, PayPal, Tesla, and SpaceX.

Under his stewardship, Namaste Technologies has refined their vision and renewed their management team, which is led by CEO Meni Morim. Mr. Morim personally owns over 3 million shares and has surrounded himself with a strong and diverse team that has previously worked with some of the most globally recognizable brands such as Under Armour, Cisco, and Amazon.

With years of research and development costs, Namaste Technologies’ investment into their software stack has laid the foundation for generational growth. As evidenced by their recent financial results, Namaste Technologies announced a record quarter with over $6.9 million dollars in net revenue or about an 73% increase from the same period in the prior year. CannMart’s revenue increased by approximately 1500% in Q2 to over $2.3 million compared to Q2 last year.4

Namaste Technologies is in its infancy and is showing early signs of what could potentially be the next big stock many investors can only dream about.

This is a technology company, with a pristine balance sheet that has no debt, and approximately $15.5 million dollars in cash as of July 31, 2020. With roughly $80M market cap, a strong working capital position and newly accelerating revenues, the stock is a perfect setup. The stock is forming a triple bottom, and as new investors start to learn about their growing fundamentals, we think it creates one of the best risk to reward scenarios on the entire market.

A Superior Technology Stock That’s Driving Additional Growth

With the viral outbreak experiencing a resurgence around the globe, demand for pot has spiked amidst the lockdown partly due to people looking for alternative anxiety and stress relief. Even though pot stores have been deemed an essential service, customers who don’t want to wait in line-ups are turning to online marketplaces to buy their products.

“Customers are spending an average of $135 dollars per order on the CannMart platform, versus in-store averages of $50 dollars per order.”5

Namaste Technologies (TSXV:N) (OTC:NXTTF) has perfectly positioned its business model to thrive in this environment, as their suite of technologies gives them a first-mover advantage over the competition. Namaste Technologies is achieving a network effect as they capture customer data to deliver accurate and relevant products to customers in real-time, creating a stronger customer experience that, in return, has more brands and Licensed Producers wanting to sell their products on CannMart.

The reason is simple: customers are spending an average of $135 dollars per order on the CannMart platform, versus the average $50 dollars in store.6 That’s a remarkable difference that is driving huge revenue growth for the company while also attracting attention from premium brands and licensed producers who want to sell on the CannMart platform.

But it gets better. Because many cultivators aren’t licensed to sell their products directly to consumers beyond any farmgate store or to provincial bodies without a costly amendment to their license, they are turning to e-commerce/omni-distribution platforms such as CannMart in order to sell their products to more customers.  Meanwhile, government regulator Health Canada has granted CannMart, Namaste’s subsidiary, the ability to package, process, and sell  cultivators’ products, creating additional revenue streams for Namaste.

These factors are accelerating Namaste Technologies’ growth, as more premium brands are selling their products on the CannMart online marketplace, including Phyto Extractions, Beleave, GTEC, and Fleurish. CannMart is increasing its roster of available products, offering its customers a better user experience. Meanwhile, this cross-selling only maximizes CannMart’s sales and increases its revenues.

The numbers for Namaste Technologies are staggering: as the company’s retail distribution network has grown, pot revenues have skyrocketed 1500% in Q2 2020 over the same period last year.

Timing couldn’t be better, as Namaste Technologies (TSXV:N) (OTC:NXTTF) is experiencing hyper-growth for its e-commerce business segment, yet it is generally misunderstood by the market as a weed company. In reality, it’s a burgeoning technology company with practically unlimited scalability. Namaste may, in fact, be one of the most undervalued technology companies out there. You can see in the table below, its Market Capitalization over quarterly revenue ratio is significantly less than its peers that are trading at billion dollar valuations.

With no debt and an extremely scalable business model, Namaste Technologies (TSXV:N) (OTC:NXTTF) is perfectly positioned for exponential growth. Backed by a seasoned management and board with global brand experience, Namaste could become a multi-billion dollar company. If sales continue to grow at the same rate, or even accelerate, it would deserve a higher sales multiple — and the numbers showcase how undervalued Namaste Technologies is.

A Growing Telemedicine Business – For Free

Despite its surging e-commerce business segment, which would be reason enough to invest in Namaste Technologies (TSXV:N) (OTC:NXTTF), it should also be highlighted that the company has a growing telemedicine platform.

As they say, timing is everything and Namaste’s telemedicine platform couldn’t be more appropriately suited to benefit from the global health crisis.

NamasteMD is a platform that aids patients throughout their medical pot journey. It allows for patients to have a remote medical consultation with a licensed healthcare practitioner. At the end of the consultation, if the patient is approved, they are provided with a medical pot authorization document and information on pot.

The platform is easily accessible for global patients where both registration and consultation are completed through the NamasteMD app. By accessing NamasteMD through iOS or Android, as well as the web, Namaste Technologies has already provided 47,000 Canadians with weed authorization through this platform.

Telemedicine might be one of the hottest topics around the planet as the global health crisis has forced patients to seek alternative options with brick and mortar choices slammed shut. Frost & Sullivan forecasts a sevenfold growth in telehealth by 2025 – a five-year compound annual growth rate of 38.2%.7

Namaste Technologies has already validated their platform and has a massive jumpstart on the competition. While current investors are focused on the growth of CannMart, NamasteMD could be another driving force for future revenues, as it easily converts individuals from prospective patients to customers, all as part of the online customer experience.

As the telemedicine segment continues to grow, even more rapidly now due to CV19, based on the current valuation of Namaste Technologies, investors are getting this call option absolutely free. It’s created a scenario where investors have massive upside, and less downside as they essentially own multiple businesses.

Management/Board of Directors

Meni Morim – Chief Executive Officer and Director Mr. Morim previously served as Namaste’s Chief Product Officer and Director of Artificial Intelligence starting in May 2018, when Namaste Technologies (TSXV:N) (OTC:NXTTF) acquired Findify AB, a company he co-founded and led as CEO, until his appointment as interim CEO, followed by his appointment as CEO of the Company. Mr. Morim has over 17 years of software development experience working in telecommunications, payments, and e-commerce.

Faraaz Jamal – Chief Operating Officer Mr. Jamal has over 13 years of experience in formulating data-driven strategies spanning e-commerce, marketing, and supply chain management. At Bulletproof 360, Mr. Jamal shifted the marketing and sales departments to a custom multi-touch attribution model. Prior to Namaste, Mr. Jamal had experience with major brands such as Under Armour and Intiveo, leading teams of data-driven marketers across North America and Europe, driving business results through data, MarTech, and innovation.

Baran Dilavar – Mr. Dilaver is an entrepreneur, creator, and accomplished executive. Mr. Dilaver’s previous venture, Firefly Vapor, where he served as the COO and CMO, was sold to a larger company and the ensuing company went public in early 2019. Mr. Dilaver helped facilitate one of the largest Series A capital raises in weed, US$35M for Mile High Labs, and co-founded FutureScape LLC, a technology focused product design and branding firm. Mr. Dilaver is a frequent speaker at industry conferences such as Tech Open Air Berlin, Brand Week, European Communications Summit, and CannaTech.

Laurens Feenstra – Mr. Feenstra is currently the CTO at Wavepaths Ltd and the Founder of Lighthouse Labs. Previously, he was a Product Manager for Google’s Waymo self-driving car project. At Waymo, Mr. Feenstra championed out of the box thinking with his colleagues who include some of the most forward-thinking AI experts in the world. His goal was to make self-driving cars available to the masses and reduce traffic accidents by remarkable margins. Prior to Waymo, Mr. Feenstra worked on some of Google’s most well-known products such as Chromebook and Android. Mr. Feenstra was a visiting scholar at Carnegie Mellon University and is the co-founder and organizer of a Burning Man camp called Never Sleep Again.

Branden Spikes Mr. Spikes spent twenty years designing and building high performance, highly secure IT systems. Most of that time was as CIO for Elon Musk at Zip2, PayPal, Tesla, and SpaceX where he helped pioneer, architect, and build some extraordinary technology. He then founded and exited a cybersecurity product startup in the Silicon Valley creating some of the most secure technology for accessing the web. Today, he is a 50 technology evangelist, investor, board member, and is the head of IT for Astra, a new rocket startup company in Silicon Valley.

Andrew Wilczynski Mr. Wilczynski is a highly seasoned senior business leader with extensive experience with a wide range of organizations, including start-ups and multinational corporations. He has advised on and led significant national, cross-border, and international financial and operational restructurings and reorganizations across a broad spectrum of industry sectors. This includes development and implementation of growth strategies, including capital raising, mergers, acquisitions, divestitures, and refinancing initiatives. Mr. Wilczynski was a partner in PwC’s deals practice for 20 years. Since retiring in 2011, Mr. Wilczynski has continued advising corporate clients and their boards of directors, as well as serving on various boards of directors.

8 Reasons

You Should Be Watching Namaste Technologies (TSXV:N) (OTC:NXTTF)


Growing revenues – 1,500% growth in pot products revenue year over year


Namaste Technologies (TSXV:N) (OTC:NXTTF) has no debt and a clean balance sheet with over $15.5 million dollars in cash


With millions of dollars invested in technology development, Namaste has been misunderstood as a weed company, but is really a technology company


In line with current digital trends: 50% of consumers use marketplace to conduct their online transactions8


Unique Value Proposition: the company has and continues to develop its end-to-end solution for consumers and suppliers to purchase and sell weed products


Since the viral outbreak, the public has transitioned to buying online, and with the growth of telemedicine platforms, NamasteMD is well placed


Board is led by top minds in AI customer interaction, and top tech innovation contributors with records, including Google Android and SpaceX


Unique artificial intelligence and machine learning technologies are used to accelerate sales




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Gaps Now Filled – Apple And Tech Stocks Maxed Out

Depending on your general trade knowledge, you may or may not consider “gaps in charts” as being significant but….

You need to understand this.

Let’s have a look at Apple for an example:

Gaps Get Filled So Order Book Reconciles

Gaps Get Filled So Order Book Reconciles

You can cleary see the small “gap” in the price chart back in Feb.

Gaps are areas on a chart where the price of a stock (or another financial instrument) moves sharply up or down, with little or no trading in between. As a result, the asset’s chart shows a gap in the normal price pattern.

Orders that have been placed in this general “price zone” are essentially caught up in the system so when a stock price gap is observed, by a chance of 91.4% it will get filled in the future. In layman’s terms, 9 in 10 gaps get filled; not always, but pretty close.

Now that the gap “has been filled” in both Apple’s chart as well the Naz in general….the door is essentially “totally wide open” for prices to “now fall”.

This “bounce” has been epic but make no mistake….now that Naz gaps are filled, these 5 big stocks( FAANG)  that are essentially “driving this bounce” ( thru buy backs / not true retail investing ) can roll over on the realities of coming earnings news. = the most horrible print any of these will ever report.

Every investor group on the planet knows that global GDP, is gonna print some of the worst numbers in our lifetimes in the coming quarter. The stock market is now just machines, as essentially 80% of America is flat busted…let alone the government.

Hold or sell? You know where I’m at. If you’ve weathered this storm or even better…made good on this bounce – my hat goes off to you. Truly incredible you all should be very proud.

If you want to hold on to any of the gains… would be a good time to do so.





Get Macro – The Wilshire 5000 Index

Have you ever followed / watched the charts on the Wilshire 500?

What the hell “is” the Wilshire 500?

The Wilshire 5000 Total Market Index, or more simply the Wilshire 5000, is a market-capitalization-weighted index of the market value of all US-stocks actively traded in the United States.

As of December 31, 2019, the index contained 3,473 components.

The index is intended to measure the performance of most publicly traded companies headquartered in the United States, with readily available price data, (Bulletin Board/penny stocks and stocks of extremely small companies are excluded). Hence, the index includes a majority of the common stocks and REITs traded primarily through New York Stock Exchange, NASDAQ, or the American Stock Exchange. Limited partnerships and ADRs are not included.

It can be tracked by following the ticker W5000.

A look at the current status:

Wilshire 5000 Index

Wilshire 5000 Index

It’s fair to say that “stock picking” during this tenuous time can be “extremely difficult” whether you are looking to get short OR remain long…..

Sometime a wider view of “macro markets” can give you a better idea as to “where we are at”….as traders have a tendency to get “tunnel vision” on a specific stock or two…then grow frustrated in not understanding the “broader market trends”.

At this point it’s fair to say that the macro damage to this chart will take considerable time to repair. We’ve now retraced a good 50 – 68% of the entire fall, and things finally appear to be stalling out.

Bulls are gonna need “a whole lot more squiggles” to even consider this a “V Shaped Recovery”.

Most of the “good news” is now cooked in with the Fed in full effect, and the tech companies first quarter earnings done ( short of Apple’s miss tonight ).

I would encourage longs / bulls to again “seriously think about taking some profits here”.

I’m popping in short for a few days here.


Hopium Is Not A Plan – Case For New Lows

You all know I trade with a very keen eye on the technicals, “coupled” with an “extremely keen eye” for the fundamentals.

I think we can all agree……the fundamental picture is clear. The bubble has been popped ( as foreseen many MANY months ago ) and the “recovery” will be an arduous journey spanning months ‘n months “if not years” if we consider the sociological and even cultural impact.

Do you honestly think things will simply “get back to normal”? Do you really think you’ll be shaking strangers hands / interacting in society “as per usual” in coming days / months? If ever?

Perhaps you’ve already second guessed your “humanitarianism” walking by a stranger in a mask? Or if I dare suggest…”someone from China”??? ( oooooooooooh ) = ridiculous. He he he….caught you. Shame on you really. Shame on us.

You don’t even exchange eye contact…and god forbid you actually “touch”.

You think you’re gonna get all “warm ‘n snuggly” a few months from now? Common…….yet expectations are that the ENTIRE WORLD just gets back to “normal”? Please.

Technically – here is a look at what a “typical” next wave down would look like, considering the severity:

Next Wave Down - One Scenario To Consider

Next Wave Down – One Scenario To Consider

Take it for what it is. We COULD rally a touch further, as its impossible to nail it exactly but..

If you don’t have a plan ( whether it is the right plan or not ) you stand zero chance of effectively trading this.

“Hopium is not a plan”.



Prepare For The Next Leg – Lower

Ya ya….I get it. You don’t want to hear it.

“Sunshine, lollipops and rainbows..Everything that’s wonderful…blah blah blah. Yes yes well…..such is not the case – currently.

Social Distancing From Kong

Social Distancing From Kong

I can go on and on with a million “technical reasons” this market will roll over ( and take another leg lower ) then I could spend days ‘n days outlining the “fundamental reasons” this market will roll over ( and take another leg lower ) – but you don’t want to hear that.

I guess a firm recognition, and solid understanding of “what we’ve just witnessed” is necessary, in order to formulate a reasonable idea of “where we’re headed next”.

You get it…obviously.

We have just witnessed the largest economic / market “TURN” of our lifetimes.

You would honestly have to be living under a rock to even “consider” this a “passing concern” or a “blip”.

World governments throwing everything / literally “everything they’ve got” at keeping populations calm and assured that monetary relief will come, and that everything will be fine.

Small businesses will die and never come back. Earnings reports over coming quarters will puke, mortgage market may implode, dollar printing will accelerate at such a pace as to “keep up” with the flood of bailouts / defaults / support programs etc…..take your pick.

This is not a bottom – this is a “dead cat bounce”, which looks to be in jeopardy of rolling over “even sooner” than I might have expected.

Do what you will….but do yourself a favor.

This is the beginning – not the end.

I am LOOKING SHORT and will plan accordingly over literally………the next 48 hours.





USD Double Top = Change In Direction

Scary Thought: the Fed just injected in one week almost the entire amount of liquidity it did in all of QE2 and it is barely enough to keep stocks from plunging.

The mass selling of stocks = massive amounts of U.S Dollars coming into the pool no? Sell your shit….what have you got?

Cash yes. Dollar index rises. Eezy Peezy.

All those margin calls and portfolio liquidations ( of whatever is still left ) have to go into “something” right?

= Cash. Yes.

= U.S Dollar and Japanese Yen as……these are the currencies that are so rapidly printed and used to fuel these bubbles, as they can be borrowed at near 0% interest.

When shit hit’s the fan….everybody sells stocks….and these two currencies rise “dramatically” in the wake. Kapeeeeesh? It’s call “repatriation”.


The U.S Dollar Double Top

The U.S Dollar Double Top

This “Dollar Double Top” is effectively “done”.

USD now to be printed to the degree we’ve never seen before….

Scary Thought: the Fed just injected in one week almost the entire amount of liquidity it did in all of QE2 and it is barely enough to keep stocks from plunging.


The Bounce Cometh – Closing Shorts

There is divergence everywhere……the down move has been historical.

It’s getting close to “bounce time”.

I assume we make a short term bottom here in coming days….then bounce thru April. This could very well be an “epic” bounce – but please keep in mind – a bounce all the same.

Hot Air Kong

I’m closing shorts, and keeping a very close eye on The U.S Dollar as we now know the Fed will begin formal QE operations once again ( hmmm…….I remember saying something about that months ago )

You know what that means right? Printing more confetti = US Dollar Down. Stocks will bounce and USD will fall. Thursday’ish?

This trade is setting up 100% totally classic Kong.

We bounce before the “real downturn” begins.

Bitcoin Becomes Digital Gold – May 18th

Well….not May 18th “exactly” but right in / around there somewhere.

With May’s Bitcoin halving event drawing ever closer, Coinbase recently took to pushing the “Bitcoin as digital gold” narrative. In a tweet-storm to promote an accompanying blog-post published Feb. 7, it covered the key reasons why the halving and subsequent supply rate reduction will further cement that link.

btc gold

btc gold

Scarcity creates value

Since the gold standard was broken in 1971, the dollar’s value has declined and gold’s value, in dollar terms, has risen over 4000%. Gold has more value than similar metals such as copper due to its relative scarcity and difficulty to acquire.

Bitcoin has been designed to be scarce like gold and is very difficult to acquire through the Proof-of-Work process of mining. However, it also has an advantage over gold in being transferable through a communications channel.

Coinbase concluded:

“Armed with a myriad of technological advantages, accelerating development, and maturing global market, Bitcoin is a store of value to rival gold in the digital age.”

Halving increases scarcity

The supply of Bitcoin is limited by design, with new tokens being minted as a reward every time a block of transactions is mined. The initial reward level of 50 BTC per block has already undergone two halving events, bringing it down to the current 12.5 BTC per block.

After the May 2020 halving, mining rewards for each new block, mined approximately every ten minutes, will reduce to 6.25 BTC. This will bring the supply issuance of Bitcoin to a rate of around 1.7% per annum.

Stock-to-flow (S2F) is a measure of new supply rate over total supply, and post-halving, Bitcoin’s S2F scarcity will be on a par with gold’s.

“Gold’s stock to flow is higher than any other metal commodity, and bitcoin is set to soon follow,” notes Coinbase.

Why Bitcoin Has Value

Why Bitcoin Has Value

No value without demand

S2F forecasts for the price will fail if there is no demand, and this holds true for fiat money, as much as any other commodity. As central banks increase the money supply, economies can sometimes prosper. However, if money supply overwhelms demand then hyperinflation events can occur.

Such events drive demand for safe havens such as gold and Bitcoin, and recent economic fear is reaching all-time highs, according to the Global Economic Policy Uncertainty Index.

This, along with Bitcoin’s myriad of technological advances and accelerating development, justifies Bitcoin’s title as digital gold, according to Coinbase.

Me? I couldn’t agree more.

Ask yourself this……how many millennials will “ever” “EVER” consider buying Gold?


Recession Is Already Here – Prepare For Disapointment

I don’t know what all the doom ‘n gloom is about. Considering the “12 year run straight up” –  doesn’t it just makes sense ( as we’ve seen repeated time and time again ) that things take their “more than expected” turn lower?

This is far to early in the daily cycle to consider “a bottom” and we’ve also got to take into consideration the weekly, monthly and yearly cycles now in play.

There are millions of ways to play down turns via Vix purchase or short U.S.D trades….there’s inverse ETF’s and crypto currency which is now expected to rise moving into the Bitcoin halving. One could even consider gold but as you’ve recently seen –  Bitcoin is the new gold. 



Most overvalued stock market ever

Tavi Costa and Kevin Smith of Crescat Capital presented their updated macro model in a recent YouTube video. This is a good article:

Based on fundamental measures they track, the stock market is the most overvalued it has ever been. They describe it as a “speculative mania,” adding that the measurements are higher than the tech bubble.

But people still think this time will be different? Isn’t this the definition of insanity? Doing the same thing over and over with expectations of a different result?