Have you noticed it? Huge things are happening in the marijuana landscape. For investors, the future looks promising in the industry, especially with Cronos Group (NASDAQ: CRON). Although the company is currently on a downward trend, still everything is pointing that the stock is not too far from getting back on an upward trajectory.
The Canadian cannabis producer had a disappointing first-quarter performance in some way, but still, it will be too early to write off the stock.
Talking about the fundamental offerings, Cronos grows as well as distributes marijuana and also makes forays into medical cannabis.
Cronos Group Inc. Price Analysis
Since March, the stock has had a downward trend; however, the last day or two has shown positive developments. In the last 24 hours, Cronos recovered by almost 0.07% going from $15.37 to $15.38. The fluctuations seem to be good news as it indicates that good days are around the corner for Cronos.
In the past 2 weeks, the company has been up and down with a total of over 3.62 million shares being bought and sold for about $55.70 million. However, things change in a flash and with the stock making positive developments; it won’t take long before we see a breakthrough for Cronos group.
But Has Cronos Group Done Enough?
Just when you think Cronos couldn’t get any better for cannabis stock investors, it will prove you wrong. The company has thus far made significant developments that both in the short as well as the long-term will prove to be vital for the stock.
In all fairness, of course, the most significant boost may have come from last December and the
Also, the deal with Ginkgo Bioworks last year is a big step for the company as it helps the company produce rare cannabinoids by utilizing Ginkgo’s organism design technology.
The move boosts the company’s long-term operating margins, given the fact that alternative cannabis products have higher prices and margins than the cannabis dried flower.
Subsequently, the stock’s revenue should surge anyway. It might not have a plethora of provincial supply agreements like its competitors, but the deal with Cura Cannabis to supply 20,000 kgs of marijuana annually for five years is a massive addition. The company should be reaching several consumers as well; thanks to the partnership with MedMen, a top U.S. cannabis retailer.
Another bullish factor is that in terms of production, the company has heavily invested in capacity expansion. Up to the moment, Cronos’s building 4 facilities each 286,000 square feet that will come online soon.
It would be pretty hard to deny that the massive international efforts the firm is making will not bear fruits for Cronos. The transformative technology on their hands as well from Ginkgo alone should be game changers.
What Now for Cronos?
Yes, the stock has got some volatility, but the growth of the cannabis industry is still strong. Canada’s third-largest company reported revenue of $6.5 million for their Q1 and represented an increase of 16% from the last quarter and hence showing that still, the stock is making some progress irrespective of the recent drop in price.
It is also worth noting that from the Q1 results, the gross margin increased to 54% and has an impact on the profitability due to the small revenue base. All the recent factors indicate a bullish run for Cronos Group Inc., which has set the ground nicely for a substantial upward trend ahead.
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Disclosure: We have no position in CRON 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…