22nd Century Group (XXII)

[admin]

["So when to exit?"]

While no stock goes up in a linear fashion, there are a few reasons to argue that it could go considerably further:
- The $1.25 you mention is likely to have been artificially low due to the rather indiscriminate selling of a financing company, that has now gone
- They've all but secured uplisting to a bigger exchange (Nasdaq or NYSE)
- If their takeover gets approved (and I don't see why this shouldn't happen), they automatically become a member of the MSA and can produce and distributes cigarettes in the US, as well as export them. The market is so big that even a fraction of it will have a considerable impact on financials. They've now got their own production facilities as well.
- At any time, British-American Tobacco can change their $7M research license into a commercial license, and/or pay a second $7M tranche, and/or sub-license to others.

They have a few more things going which are probably a little further out (smoking cessation aids, etc.), but the core is simply their patent portfolio of 100+ patents on plant genetics regulating nicotine levels which enables them to do something that they alone can: regulating nicotine levels in tobacco without chemicals, that is, without affecting the taste, and doing so in a much wider range.

I don't know about tomorrow or next week, or even next month, but next year the share price is likely to be significantly higher still. IMHO.