Curaleaf Stock (CNSX:CURA) (OTCMKTS:CURLF) is climbing up the ladder and leading the 2020 cannabis bull run. Our subscribers were alerted in our last article that Curaleaf stock was a buy and we were fortunate to call the bottom at $4.51 a share. Now, as 2020 progresses, there’s a lot more room for Curaleaf stock to run.
Curaleaf Stock Price Analysis
Revenue growth is another development that continues to strengthen Curaleaf sentiments in the market, consequently fuelling bullish momentum in the stock. Expansion into new markets such as California is another development that continues to affirm the company’s long-term prospects.
Likewise, the company has secured a bumper $275 million senior secured term loan facility. The credit line should allow the company to take advantage of significant market opportunities by pursuing strategic initiatives.
In view of the positive developments, the stock has bottomed out after dropping below the $5 mark late last year. Consequently, the stock has taken out the $6 resistance level setting the stage for further movements on the upside.
Considering the emerging uptrend, Curaleaf could be on its way to the $8 mark, the next substantial resistance level. A rally followed by a close above the $8 mark should bring to an end the sell-off wave paving the way for the stock to make a run for one-year highs.
About Curaleaf stock
Curaleaf bills itself as a vertically integrated multi-state cannabis operator. The company is engaged in the growing, processing and distribution of cannabis across 12 states in the U.S. The company boasts of a network of 50 dispensaries 14 cultivation sites and 13 processing sites.
A spike in price action activity at the back of increased trading volume stems from improved underlying fundamentals that affirm long-term prospects. The company’s fundamentals have received a boost from an aggressive acquisition drive that has helped strengthen Curaleaf business portfolio.
For starters, Curaleaf has completed the acquisition of Acres Cannabis, consequently gaining access to an award-winning flagship dispensary at the heart of Las Vegas. In Nevada, the company will operate two cultivation facilities as well as two processing sites and two dispensaries as it moves to pursue opportunities for growth in the city.
The company has also set sights on Illinois, a market that has recently approved recreational sales. Likewise, the company is in the process of closing the acquisition of Grassroots as it seeks to strengthen its revenue base further. With the deal set to close in the first quarter of the year, Curaleaf revenues could range in the $1 to $1.2 billion range
California is another exciting market that Curaleaf is planning to expand its footprint into, with the acquisition of Select. The acquisition should expand the company’s business with access to 19 states with 71 retail locations.
Amidst the acquisition drive, institutional investors are already taking an interest in the company. Curaleaf securing a $275 million senior scored term loan facility underscores confidence about the company’s long-term prospects. Proceeds from the refinancing deal will go towards payment of existing debt as well as catering for expenses and fees from previous acquisitions.
“Importantly, we have raised debt capital at attractive terms without the need to dilute our shareholders. We believe this additional capital fortifies Curaleaf’s balance sheet to take advantage of the significant market opportunities that exist in this space,” CEO Joseph Lusardi said in a statement.
The capital injection leaves the company in a strong financial position. Likewise, Curaleaf should be able to pursue new strategic initiatives that have the potential to scale the business as well as generate new positive free cash flow. The new acquisitions should also benefit from the expanded balance sheet.
After taking a huge hit in 2019, Curaleaf stock has recovered nicely. Acquisitions carried so far as well as those pending affirm a company focused on long-term growth. That said the company’s revenue base should continue to grow at a rapid pace over the next few years.
Curaleaf stock looks set to continue edging higher as it continues to generate institutional investor interest. If you are looking for a stock seeing tremendous long-term potential while trading at a discount, Curaleaf stock fits the bill.
We will be updating our subscribers as soon as we know more. For the latest updates on Curaleaf stock, sign up below!
Disclosure: We have no position in Curaleaf stock 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…