They say the one who sees things in the seed is a pure genius. When the legalization of marijuana started gathering some momentum back in the 90s, many investors saw the seed of opportunity in the cannabis plant. However, it’s only those that invested in the quality pot stocks have made a fortune.
But is it too late to benefit from the cannabis boom? Literally, it seems like the race has only just begun, but only if the right investments are chosen and focus is placed on the fundamentals.
The Canada-based grower’s stock Aurora Cannabis (NYSE: ACB) is poised for growth in 2019 and hence a stock to watch for most investors.
Aurora Cannabis Price Analysis
Headquartered in Edmonton, Canada, the company produces as well as distributes a wide variety of medical cannabis products. Aurora Cannabis is scheduled to report its third-quarter earnings shortly with expectations of a 3% loss on revenue of $55.1 million.
Currently, the stock’s price is at $11.38 having seen some decrease in the last few days. The price is steadily increasing as the shares shot up today by 5.6% bouncing off a 2-month low.
Just recently, Aurora Cannabis Inc. fell by 3.95% from $8.35 to $8.02. However, it has hence picked up and risen with signs of an upward trend in the cards. Already, the company has broken broad as well as a strong rising short-term trend; hence as much as the rising trend may seem slow, it will surely get up.
Aurora Cannabis overview
Aurora is one of the leading cannabis companies in the world with a funded capacity of 625,000 kg marijuana annually and sales alongside the operations in more than 24 countries across 5 continents.
The company has an advanced consistent as well as efficient production strategy with its facilities built to meet the EU GMP standards.
It has been a hot pot stock especially this year and still has got a lot more room of reaching even higher.
Acquisitions play a significant role within the corporate ecosystem as they are the tools of expanding the revenue, competitive moats, profitability, and the geographical reach. In fact, shareholders are always eager of what the company will acquire next.
Aurora has not been left behind in wrapping up some acquisitions as well as they push forward. There were a series of acquisitions in 2017 and 2018, and this year started with acquiring Whistler Medical Marijuana in a deal worth $132 million.
The main reason for the acquisitions is to bridge the gap for more marijuana, and adding capacity is the best way.
Moreover, the company had taken over CanniMed Therapeutics – a leader in the Canadian medical marijuana industry. Further, it acquired the South American market leader, ICC Labs for $290 million which has proven to give Aurora a strong footprint in South America as well as a first mover advantage.
All the acquisitions are meant to make Aurora even better, and thus far they have proved to be supportive in the company’s journey.
What Raises Optimism?
Aurora announced its two facilities being fully licensed by the Canadian Health authority for production as well as the sale of marijuana. The two facilities: Aurora Sky and MedReleaf Bradford raised the stock’s price at the time.
So, it means that the stock has got great potential of moving up whenever an opportunity comes across. That is an aspect that keeps investors optimistic that Aurora stock is well on track to keep rising.
The Future Looks Bright for Aurora
Apart from benefiting from the location, Aurora looks to tie down a partnership with major beverage companies such as Coca-Cola so as to introduce cannabis-infused drinks.
Furthermore, the company has massively expanded its facilities to meet the high demand and has bought other firms. Notably, it acquired the Mexico-based medical marijuana partner, Farmacias Magistrales hence offering Aurora entry into the Mexican market.
Consequently, as much as Aurora has got its caveats, the stock looks bullish and with third-quarter earnings underway, the pot stock looks much attractive for the long-run.
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Disclosure: We have no position in ACB and have not been compensated for this article.
Terra Tech Corp (OTCMKTS: TRTC) A Bounce Back Play As Net Loss Narrows And Gross Margins Expand
Terra Tech Corp (OTCMKTS: TRTC) has retraced lower ever since it clocked 2019 highs at the end of the first quarter. The stock has crumbled under soaring bearish pressure. Amidst the steep pullback, the stock is a potential bounce-back play as it is currently trading at the lower end of a tight trading range.
Terra Tech Price Analysis
A plunge to the lower end of the $0.63 to $1 trading range leaves the stock in a precarious position. A plunge lower could elicit further selling pressure while a bounce back could result in the stock making run for this year highs.
In our view, the stock could bounce back on investors reacting to a string of positive developments that affirm the Company’s prospects. For starters, Terra Tech is fresh from launching a legal cannabis delivery services as it continues to pursue growth opportunities in California.
The Company is also fresh from delivering impressive financial results that indicate gross margin expansion as net loss from operations continues to narrow. The sale of Blum Desert is another development poised to strengthen the company’s financial position.
Terra Tech commencing cannabis sales to the adult use market should continue to excite investor’s, ideal for fuelling an upswing in the stock’s price action activity. With the stock appearing to have hit the floor after the recent pullback, a correction higher could be in the offing at the lower end of the trading range.
Namaste Technologies Inc (OTCMKTS: NXTTF) A Bounce Back Play On Robust Revenue
Namaste Technologies Inc (OTCMKTS: NXTTF) has had to contend with wild price swings, as investors reacted to delays in the filling of audited financial results and ousting of Sean Dollinger as the CEO. That could soon change, as the Company has come through and filled results that affirm robust revenue growth.
Namaste Technologies Price Analysis
However, concerns over widening net loss could hurt the stock’s sentiments in the market, at a time when it is in dire need of, groundbreaking catalysts to avert further slides. While the stock has bottomed out, it remains engulfed in a long-term bear trend.
The descending trend line could attract short selling pressure on the filling of negative news that arouse concerns about the Company’s long-term prospects. A spike to the $0.65 level essentially means the stock is at a critical resistance level.
Failure to rally and find support above the resistance level could elicit some form of selling that could see the stock trading sideways. Immediate support on any pullbacks from current highs is seen at the $0.40 mark.
A sell-off followed by a close below the $0.40 mark could result in Namaste Technologies resuming its downtrend, as has been the case for the better part of the past year. Conversely, a rally followed by a close above the $0.66 mark should pave the way for the stock to make a run for the $1.20 mark, seen as the next…
Cannex Capital Holdings Inc. (OTCMKTS: CNXXF) A Long-Term Play Despite Price Slump
A strategic merger with 4Front coming on the heels of Pure Ratios holding acquisition affirms why Cannex Capital Holdings Inc (OTCMKTS: CNXXF) prospects can only get better despite the recent price slump. The transformational events expand the Company’s operations into six U.S states signaling push for market value in the burgeoning cannabis sector.
Cannex Price Analysis
While Cannex has taken a significant hit in the market, it is still up for the year after an excellent start that saw it rally by more than 200%. The stock has since pulled lower in what appears to be a correction phase.
The ongoing pullback has since exposed the stock to a crucial support at the $1 a share level. A breach of the support level would leave the stock susceptible to further drops probably back to the $0.80 mark, a critical technical level.
For the stock to resume its uptrend, it first needs to rise and stabilize above the $1.20 mark, the immediate resistance level. The stock rallying and finding support above the $1.2 mark would open the door for bulls to fuel a rally back to 52-week highs.
Cannex is a diversified company that leases real estate properties and sells supplies to cannabis cultivators. The Company also offers financial services as well as branding and IP services to licensed cannabis operators. It is also focused on premium indoor cultivation extraction and branding of edible…