Indoor Harvest Corp (OTCMKTS:INQD) Just Fixed Its Jobs/Wozniak Reversal

The cannabis space has been a real hot one this quarter, with the legalization ballots drawing attention to the sector throughout October and November. Companies of all shapes and sizes, and at pretty much every corner of the market, have gained in market cap on the loosest of links to recreational and medicinal legalization. Recently, however, some degree of sense has capped the frenzy, and some of the companies that didn’t really deserve the gains (but were buoyed by the sector-wide enthusiasm nonetheless) are correcting – some severely.Just as the run up presented an opportunity, however, we think that so does this corrective phase. Companies across the board are taking a hit, and in the same way that some built unwarranted strength, some are now losing it that don't really deserve to.We're on the hunt for companies in this latter boat, and one that has caught our eye is Indoor Harvest Corp (OTCMKTS:INQD).The company ran up to as high as $0.82 a share at the start of November, but declined throughout the month and currently trades at $0.44 – a 46% discount from highs. The company is a designer and builder of indoor growth facilities in the agriculture space, and in line with the recent trends, has pivoted to apply its current operations (leafy greens, primarily) to the design and development of facilities aimed specifically at cannabis growth. It's Texas based, and has a current market cap of a little over $6.7 million.So why do we think the company is undervalued?Well, it's rooted in the latest development.This week, Indoor Harvest announced that its current CEO, Chad Sykes, would be stepping down. Normally this is a bad sign for a company, especially at this end of the market. In this instance, however, Sykes is taking the roll of Chief Innovation Officer, and his co-founder, John Choo, is stepping into the CEO role.This is good on two fronts.First, Sykes is the tech guy in the partnership. He's the one that designs the technology that underpins the grow houses, and differentiates the aeroponic system that the company relies on from that of its competitors. Stepping down from the CEO role is going to free him up to focus on that side of the business, and as we've seen over the last few weeks, companies like this are going to need as much differentiation as possible (because there's so many of them) if they are going to bring in the sales.Which brings us to our second front.Choo, who is the new CEO, has basically spent all his time in his previous roll generating sales, building business relationships, and – essentially – building the company on the back of Sykes' tech. It's Jobs/Wozniak of the aeroponic leafy greens growth space. That sounds ridiculous, but its apt. The only difference (aside from industry of course) is that with Indoor Harvest, Wozniak became CEO instead of Jobs.The roles are now reversed, and we think that's going to drive value going forward.Nothing's a certainty, of course, and especially at this end of a young market. There are risks that apply to most of the companies in the space, and Indoor Harvest is far from exempt from these risks. The company is undercapitalized, and dilution is a certainty. Revenues are weak, and a little erratic, but growing on a year over year basis. Cash is low (hence the above mentioned dilution necessity) and outweighed considerably by debt.Those are the downsides. There's upside available here, however, and at its current price, we think there's more than enough run room to take advantage of it.We will be updating our subscribers as soon as we know more. For the latest updates on INQD, sign up below!Disclosure: We have no position in INQD and have not been compensated for this article.