Rats! The Punter has missed out on a quick profit of between 50 and 75 per cent last week.
He held back and waited to see how the latest farming stock fared when it came to the stock market.
ECS Botanics (ASX code ECS) is a start-up with big ambitions but no track record in its chosen business, industrial hemp.
It has licences to grow hemp, produce non-pharmaceutical products, including food, and to import and export hemp seeds.
However, it is still waiting for a licence to produce medicinal cannabis. It has only just harvested its first crop of hemp in Tasmania, but it has raised a bucketful of money - $6.5 million.
Braver souls than the Punter rushed to buy the shares in the initial offer at 4c each. When they started trading last week, the price ranged from 6.2c to 7.7c.
ECS stays on the Punter's watchlist, but the hemp/cannabis market is looking a little crowded, and ECS is a latecomer.
For example, Cann Global Ltd, (CGB), formerly Queensland Bauxite (QBL) is expected to resume trading on the ASX any day now. The company retains its Queensland bauxite interests, but has acquired 100 per cent of Medicinal Cannabis Ltd.
QBL shares were suspended at 3.7c. It has since offered shareholders additional shares at 3.5c each, with the sweetener of a free option for every two shares. The options can be converted to ordinary shares at 10c each until April 30 next year. They will not be listed on the ASX, although that may change.
Both ECS and CGB face competition from Tasmanian Alkaloids, which has 200 staff and contracts with 500 farmers and will supply cannabis resin to the AusCann Group (AC8), from next year.
Meanwhile, the Punter has doubled his money on would-be kaolin miner Andromeda Metals (ADN) and has sold half his holding.
- The Punter has no financial qualifications and no links to the financial services industry. He owns shares in a number of companies featured in this column.
