Canopy Rivers Inc (OTCMKTS: CNPOF) is still fluctuating around the 50-day moving average but looks poised for a major take-off. In our last coverage, we acknowledged the significance of the price action which implied the stock was ripe for a bounce from a minor correction.
CNPOF Share Price Analysis
In January 31 2019, Canopy Rivers’ stock attained the highest price year-to-date at $4.43 after a strong start to the year. At the time, the stock had established support at $2.85. However, the stock crossed the 50-day moving average in March sloping downwards in what looks like minor correction. In the last two months, the stock has traded quite close to the MA (50) trend-line and a little jump should bring in the bulls for a massive rally.
In the previous analysis, we noted that key developments including the supply agreement closed by PharmHouse Inc., a portfolio company, were bolstering the strength of the stock’s tailwinds. Further, our analysis indicated that Canopy Rivers was prime for an uptrend due to increasingly positive market sentiment. Also, the stock took out the psychologically important $3 resistance level. Essentially, we concluded that CNPOF was a bounce back play.
Recall that it is just under two weeks our last update on CNPOF and the stock is already up 0.6% at $3.22 a share. In the two weeks, the company has entered a number of agreements which are very significant. Particularly, two portfolio companies, Agripharm
About Canopy Rivers
Canopy Rivers has built its business model around collaborative financing where it identifies emerging cannabis companies but with a sound business strategy to invest in. Most of the counterparties Canopy Rivers associate with seek finances or operating support. It works with Canopy Growth to maximize value for its shareholders.
Licenses for portfolio companies
One of the ways through which Canopy Rivers maximizes value for its shareholders is through facilitating portfolio companies to maximize their production capacity. To that end, Agripharm earned official clearance to begin outdoor cultivation of cannabis. The company intends to put to use award winning genetic engineering technology to grow crops in its Creemore location in Ontario. The license gives Agripharm room to diversify its operations in addition to expansion of growing capacity.
On the other hand, Vert Mirabel just earned a final clearance from Health Canada to cultivate cannabis to capacity. This is to say that all operating space under the company’s ownership has the greenlight to populate with cannabis crops.
Olivier Dufourmantelle, Canopy Rivers’ Chief Operating Officer said, “We are thrilled that the operational infrastructure at Vert Mirabel is now fully online with over 500,000 sq. ft. already in production. Vert Mirabel is a key asset for Canopy Rivers as it provides exposure to a commercially scaled source of locally grown, premium quality cannabis for distribution into Québec and across the country.”
Canopy Rivers’ interest go beyond investing in companies which just cultivate cannabis. On May 23, 2019, the company shed light on an agreement with Biolumic where Canopy Rivers injected $1.5 million in Biolumic coffers. Biolumic creates sustainable UV crop yield enhancement systems majorly used in outdoor cultivation of crops.
Biolumic intends to use this capital injection, alongside additional capital raised from a Series A financing round, to accelerate its global expansion. Also, the firm seeks to conduct extensive research in its proprietary UV light treatments with a view on expediting commercialization.
In particular, Canopy Rivers is interested in Biolumic due its demonstrable game-changing business model. So far, the company has conducted successful trials around the globe and it is apparent that the strategy is a potential hit in the long run. For instance, the technology could take on the cannabis sector which is estimated to touch $146 billion by 2025.
What is apparent is that Canopy Rivers is interested in the long game. In particular, most of the recent big moves involve companies whose sights are set on long-term growth. For instance, Vert Maribel will soon begin cultivating at capacity levels which should contribute greatly to long term sales. Also, Biolumic is just about to go global, especially after the oversubscribed Series A funding round, and
Essentially, the bottom line is that the stock is staring at a major break out which should not be long. We already noted that our previous updates on the stock have called an impending bounce. Investors should not dismiss this call.
Buying the current dip is a wise thing to do since all the big moves
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Disclosure: We have no position in CNPOF and have not been compensated for this article.
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…
Is Cronos Stock (TSE:CRON)(NASDAQ:CRON) A Buy?
Cronos Stock (TSE:CRON)(NASDAQ:CRON) stock fell 9.22% on January 24, marking its steepest decline so far in 2020. The stock plunge followed an important disclosure that you would only expect from a company that is trying to be straight and transparent with investors. Here’s what happened.
On January 22, after market close, Cronos made a regulatory filing detailing changes in its executive team. In that SEC filing, Cronos revealed that David Hsu and William Hilson have stepped down as its chief operating officer and chief commercial officer, respectively. Unfortunately, some investors read bad news in the executive exits and sold their shares in Cronos.
But a careful reading of the filing doesn’t seem to raise any red flags. Therefore, the big stock plunged points to investors panicking to the degree of responding to a mosquito bite with a missile.
There is no doubt that 2019 was a difficult year for cannabis stocks and Cronos Stock is no exception. But before the uncalled for reaction to Cronos’s regulatory filing, we had been at a point where sellers were starting to give way to buyers in Cronos stock. The stock has gained about 8.0% in the past one month. It had gained more than 13% year-to-date before the January 24 big selloff.
About Cronos Stock
Cronos Stock is a Canada-based global cannabis company. Cronos operates through subsidiaries and…