Next Investors logo grey

CropLogic moves a step closer to monetising hemp crop

Published 16-JUL-2019 11:19 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Shares in AgTech group CropLogic Ltd (ASX:CLI) opened higher on Tuesday morning after management confirmed that the group had met another milestone in completing planting at its Hemp Trial Farm in Central Oregon.

This season, CropLogic’s wholly owned subsidiary LogicalCropping will crop 500 acres of CBD producing hemp at its Hemp Trial Farm in Central Oregon.

The completion of planning represents another box ticked by management, reinforcing its track record in terms of delivering on expectations.

Next steps include the installation and utilisation of CropLogic’s suite of agtech products such as CropLogic realTime and CropLogic Aerial Imagery, as well as implementation of a fertigation strategy.

Commenting on the critical nature of this development, CropLogic chief executive James Cooper-Jones said, "The first 3 days and then the first 3 weeks are critical times in any cropping operations as this is the time that determines whether plants will ‘take’.

‘’Considering this, it is also encouraging to see the first plantings are ‘taking’ well and showing good growth.”

Next Investors Image

More milestones on the horizon

The company could well receive further share price support over the coming months as news regarding growth and flowering emerges in August/September, followed by compliance testing and harvesting in September/October.

At the start of May FinFeed highlighted CropLogic’s impressive earnings outlook with this year’s crop expected to generate underlying earnings of approximately $40 million based on a healthy yield and mid-range costs of production and sales estimates.

Since then CropLogic’s shares have doubled, and no doubt as the company draws closer to realising its anticipated earnings its share price will respond accordingly.

CLI's shares have doubled since May.

Given the company’s market capitalisation of $22 million implies a substantial discount to other profitable agricultural producers, a rerating could be significant.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.