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.
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…