Despite currently trading near its record-lows at about $0.08, AgraFlora Stock (CNSX:AGRA) (OTCMKTS:AGFAF) stands out as one of the promising cannabis stocks in 2020. You are about to find out why now may be the best time to add AgraFlora to your cannabis stock portfolio. But first it is important to know how we got here. Investors will very well remember that 2019 was a disappointing year for cannabis stockholders. That explains why you spot AgraFlora near its all-time lows.
A confluence of factors contributed to the big plunge in cannabis stocks last year. They included uncertainty over Canada’s national election. Investors panicked and sold off cannabis stocks on fears that Prime Minister Justin Trudeau’s Liberal party would lose to the Conservatives in the national polls. Investors feared that a conservative government would roll back the cannabis legalization gains achieved under the Trudeau administration.
Another reason why investors dumped cannabis stocks last year was due to fears that a shortage of cannabis shops in Ontario would hamstring rapid development of Canada’s legal cannabis market. The good news is that these concerns are no longer there, and that means a bright outlook for AgraFlora in 2020.
About AgraFlora Stock
AgraFlora is a diversified Canadian cannabis company that serves both the domestic and international markets. It operates cannabis grow facilities in Ontario and has taken to opening farm-gate retail stores to address the problem of cannabis shops shortage in the province.
Canada last year expanded its cannabis market with the legalization of more cannabis products for adult-use. These include cannabis edibles, drinks, and smoking devices or vape pens. AgraFlora is one of the cannabis companies that have positioned themselves well to capitalize on Canada’s expanded cannabis market in order to deliver great value for shareholders. But AgraFlora isn’t just confined to the Canadian market. The company also boasts a global reach with footprints in Asia and Europe.
Here are some of the steps AgraFlora has taken to grow its business for the long-term and why you would love the stock.
AgraFlora makes strategic acquisitions to accelerate its expansion domestically and abroad
AgraFlora recently purchased two cannabis businesses that promise to supercharge its growth as well as diversify its product portfolio and markets.
On January 3, AgraFlora closed the acquisition of Farmako, a German-based European cannabis business. Farmako operates as a distributor of medical cannabis products. Though based in Germany, Europe’s largest economy, Farmako serves customers in the UK, Luxembourg, and Denmark as well through affiliate companies. In 2019, Farmako generated $3.1 million in revenue and made more than $1.4 million in gross profit. Therefore, the Farmako acquisition brings an instant boost to AgraFlora’s top and bottom lines. Moreover, Farmako acquisition now means AgraFlora controls 8.0% of Germany’s cannabis market.
On December 5, AgraFlora announced it would purchase Sanna Health Corp, a Canadian company with licenses to grow, process and sell cannabis products in the country. AgraFlora expects the acquisition of Sanna to more than double its 2020 cannabis production. Moreover, the acquisition will see AgraFlora add market-leading cannabis products to supplement its existing brands.
AgraFlora secures important sport marketing and export deals
AgraFlora has secured a deal with Toronto Wolfpack to advertise its HowlBrands line of cannabis products on the club’s jersey during the 2020 RLF Super League season. AgraFlora counts on the arrangement with Toronto Wolfpack to achieve valuable exposure that would, in turn, increase the sale of its HowlBrands product line.
In addition to the sports marketing arrangement with Toronto Wolfpack, AgraFlora has also teamed up Eurasia Infused to export its HowlBrands products for sale in Japan and Hong Kong. The arrangement with Eurasia Infused helps AgraFlora unlock a larger market opportunity for its HowlBrands products.
AgraFlora solves Ontario cannabis shops shortage with farm-gate retail outlets
Ontario is Canada’s most populous province, thus an important market for cannabis companies like AgraFlora. However, the cannabis business has been slow to take off in Ontario because of a shortage of cannabis shops. AgraFlora has figured out how to overcome this challenge. The company is opening farm-gate retail outlets at its production facilities. It is a strategy that will help AgraFlora boost both its sales and profit margin in Ontario.
AgraFlora has taken important steps to position its business for long-term growth and shareholder value creation. Though presently trading at $0.08, AgraFlora stock looks poised for a major breakout in 2020 as more investors come to realize the tremendous opportunity.
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Disclosure: We have no position in AgraFlora Stock and have not been compensated for this article.
Forget APHA and ACB, Buy GTBIF and TCNNF
There are a lot of misconceptions going on when it comes to US legalization. Many investors are buying Aphria (APHA) and Aurora Cannabis (ACB) hoping to bank on what’s happening in the US. However, they are Canadian Licensed Producers and have no business in the US. Investors are buying them because they trade on the major exchanges, but that is the wrong move. The correct move is to buy the US multi-state operators like Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF).
On Election Day voters in New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana. South Dakota and Mississippi voters also approved measures to legalize medical marijuana.
There’s also the prospect of a more pot-friendly White House with President-elect Joe Biden. Vice Presidential Candidate Kamala Harris said at the debate a Biden administration would decriminalize marijuana at a federal level and expunge criminal records of people with marijuana-related offenses.
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves.
Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection.
The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96…
What Do Investors See In Medical Marijuana Stock (OTCMKTS:MJNA)?
Medical Marijuana Stock (OTCMKTS:MJNA) has emerged as one of many investor’s favorite pot stocks in the legal cannabis universe in 2020. The stock is already up about 10% in 2020, demonstrating how investors have warmed up to the stock early on in the New Year.
Following a disastrous 2019, cannabis investors lost money but have also learned that their best bets are stocks with strong fundamentals. They are looking for companies that have positioned themselves well in the cannabis industry and have what it takes to go for the opportunities. That is why MJNA stock is catching a lot of investor attention in 2020 because of how it has positioned itself in the cannabis market.
Robust revenue growth and strong financial position have also helped put MJNA on the radar of investors hunting for quality cannabis stocks. Revenue at MJNA more than doubled from $26.5 million in 2017 to $60 million in 2018. MJNA is also not in financial distress as may be the case with other cannabis companies out there. The company finished the third quarter, the most recent reported period, with $5.5 million in cash reserves.
Moreover, MJNA has recently taken steps to expand into new international markets and invest in companies that are leaders in their segments. These prudent actions are helping lift Medical Marijuana stock as more investors learn about them.
About Medical Marijuana stock
Is Tilray Inc (NASDAQ:TLRY) A Buy Or Sell?
For Tilray Inc (NASDAQ:TLRY) and the rest of cannabis stocks, 2019 was no doubt a bad year. But 2020 is shaping up to be a promising year for the stock. To start with, Tilray stock has already gained 8.35% year-to-date. If that says anything, it shows following the broad selloff in Tilray stock last year, we’ve got to a point where sellers are giving way to buyers in the stock.
There are several catalysts that should continue driving NASDAQ:TLRY as you’re about to see. First, below is a brief profile of the company we’re discussing.
Tilray is a Canada-headquartered global cannabis company. It is engaged in activities of cannabis cultivation and processing as well as marketing and distribution of cannabis products. Tilray already has several cannabis products brands to its portfolio. It operates across five continents through subsidiaries in Canada, Australia, Germany, and Portugal.
Following the broad collapse of cannabis stocks in 2019, investors are looking for cannabis stocks that can make a positive impact on their portfolios in 2020. Tilray stands out as an attractive cannabis stock pick in 2020. Here are some of the exciting things about the company.
Tilray CEO sees a bright future for the cannabis industry
On January 25, Tilray CEO Brendan Kennedy spoke on Bloomberg. In that interview, Kennedy framed a rosy outlook for the…