If you liked the 80% gains in WPCS we alerted you to on Friday, I think you will love this next one.

 

It's time to revisit an old favorite - a low float, past runner that could be about to breakout.

 

In fact, the last time we profiled Lexaria Corp (LXRP) back in March, it gapped up and ran more than 400% in real tradeable gains.

 

So now that marijuana stocks are coming back to life, with Washington State coming online and reports that dispensaries are running out of supply, with think its a great time to revisit from proven past runners. 

 

LXRP has formed a strong pennant formation over the past few months. Take a look at the six month chart below.

 

 

 

 

For those of you who are not familiar with chart formations, pennant formations can be extremely bullish.

 

Check out this definition and example of a pennant formation from Investopedia...

 

The pennant formation is formed when there is a sharp price movement followed by generally sideways price movement, which is the pennant. The pattern is complete when there is a price breakout in the same direction of the initial sharp price movement. The following move will see a similarly sharp move in the same direction as the prior sharp move. The complete move of the chart pattern - from the first sharp move to the last sharp move - is referred to as the flag pole.

 

 

 

Notice the similarities between LXRP's chart and the example pennant chart above? Both pennant formations look almost identical.

 

Except LXRP hasn't yet completed its breakout.

 

Of course the bullish chart pattern is no guarantee that LXRP will deliver us gains, but there are other reasons to be consider it for a trade.

  

First, LXRP has a relatively small market cap, and at $8m could be considered remarkably cheap compared to most of its peers. 

 

We also like the positive news coming out of the company recently.

 

Just a few months ago, LXRP announced they had formed a JV to co-own and manage a marijuana production facility in Canada. This JV agreement was formalized in June.

 

You can read more below....

Lexaria's First Marijuana Production Facility

"Lexaria Corp. (LXRP) announces it has entered agreements for its first co-owned and co-managed MJ production facility in Canada.

The facility is comprised initially of roughly 30,000 square feet of space, with a right of first refusal having been acquired for another 45,000 square feet to accommodate future growth. Planned production areas have 22 foot ceilings which will allow for the possibility of a 2nd mezzanine level in many areas, allowing for additional future expansion.

Lexaria will own 49% interest in the production facility by paying 55% of all initial and ongoing expenses related to the project. Lexaria's Joint Venture partner, Enertopia Corp, will own a 51% interest in the production facility and pay 45% of costs. Lexaria will also issue a one-time payment of 500,000 restricted common shares to Enertopia. There are no overriding interests payable to any entity. An initial 5-year lease has been entered, with options to renew the lease for another 15 years."

 

The company has since announced an important new hirings http://finance.yahoo.com/news/lexaria-appoints-assistant-plant-manager-174100029.html and http://finance.yahoo.com/news/lexaria-appoints-former-chief-police-121500771.html

 

You can learn more about LXRP at their website http://www.lexariaenergy.com/

We think traders and investors alike will sit up and take notice of LXRP, especially with the interest coming back into marijuana stocks.

 

The question is, do you want to get in to LXRP before pennant formation breakout occurs and maximize the gains to be made?

 

LXRP has a low float, and a history of making big runs, so you need to be ready at the opening bell or you might miss out.

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