On April 24th, I published an article titled “Food Water and Weed, Why I’m Bullish on Two Rivers Water and Farming.” I made a bullish case for the stock and called out technical support at $0.50, suggesting the price could bounce in the near term.
We alerted premium members to the opportunity and added shares of TURV to the Gold Stock Bull portfolio just prior to sending out the public article on the company. The share price has since blasted higher from around $0.50 to a high of $0.96 today. We have nearly doubled our investment, with a gain in excess of 90%. Subscribers that bought on the brief dip below $0.45 on May 5th, are up more than 120% in less than a month!
GrowCo (majority-owned subsidiary of Two Rivers) has nearly completed construction of their first 91,000 sq ft greenhouse and 15,000 sq ft processing warehouse. Furthermore, they have already secured tenants for the project, which will be the largest modern cannabis greenhouse growing facility in Colorado. The greenhouse has been leased to Suncanna, LLC, a newly formed Colorado limited liability company, whose principals have over twenty years experience in modern commercial greenhouse growing.
GrowCo expects to begin building its second greenhouse in July of this year and to construct a total of four greenhouses on its 160-acre tract of land in Pueblo County, Colorado within the next 18 months. When completed, GrowCo will lease to growers a total of 360,000 sq ft of greenhouse space and 60,000 sq ft of processing facilities.
GrowCo builds its greenhouses for $45 sq ft and leases its greenhouse systems for $20 sq ft annually. When compared to converted warehouses, initial trials indicate growers will have the ability to grow up to 200% more product per square foot at half the cost. The value proposition for licensed growers is a much lower cost per pound, for Two Rivers’ shareholders a significantly higher return on investment and for cannabis consumers a substantially lower cost, higher quality, naturally grown product.
The chart shows the incredible spike higher over the past month, breaking through both key moving averages. The RSI is overbought, but there is room to push higher before hitting previous support in the $1.00 to $1.10 range.
So, what is next for Two Rivers? I remain bullish long-term on the company and think we could see the share price climb higher once cash flows begin rolling in later this year. But I always like to take some profits off the table after such a huge run like this. When an investment doubles, I will often take 50% off the table and allow the remaining 50% to ride risk-free.
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