Emerald Health Therapeutics Inc (OTCMKTS: EMHTF) is edging lower after a meteoric start to the year that saw the stock rally by more than 50%. Amidst the pullback, another leg higher could be on its way on the Company delivering impressive financial results for Q1.
EMHTF Price Analysis
The earnings report indicate a year-over-year increase in sales alluding to underlying growth as the Company continues to benefit from increased cannabis production. The Company is also on course for yet another impressive year after signing a string of cannabis supply agreements, poised to accelerate sales growth.
The stock continues to trade close to the $2.70 mark from where it remains well supported for further upside action. Given the underlying uptrend, the stock is likely to make a run of the $3.4 resistance level on bouncing off the support level
Considering recent developments, Emerald Health Therapeutics remains well supported for another leg high on the steep pullback fading.
What Does Emerald Health Therapeutics Do?
Emerald Health Therapeutics is engaged in the production, distribution, and sale of medical cannabis products in Canada. The licensed producer holds a 50% stake in Pure Sunfarms with a 1.03 million square feet cannabis cultivation capacity. The Company is also in the process of completing a build-out of an 800,000 square for a cultivation facility in Quebec.
An impressive earnings report could as well have provided investors a reason to continue pushing Emerald Health Therapeutics higher after a recent pullback. Sales growth, as well as increased cannabis production, are some of the milestones that continues to affirm the Company’s growth metrics.
Emerald Health Therapeutics Q4 sales more than tripled year-over-year to $1.1 million as Q1 2019 sales more than doubled sequentially to $2.6 million. During the year, the Company also signed an agreement with seven provinces paving the way for it to become a key cannabis supplier in Canada.
The management is projecting yet another record-breaking year as the 50/50 joint venture, Pure Sunfarms, moves to bring into full production one of the largest cannabis growing assets in the world.
“By further building upon our intellectual property and strategic partnerships, as well as our own internal expertise, we are working hard to increase market penetration through the development of new and differentiated ingestible and non-combustible products if, as expected, they become allowable before the end of 2019,” said Executive Chairman Avtar Dhillon.
Emerald Health Therapeutics remains well positioned to pursue growth initiative in 2019 after completing a string of equity financings in 2018. Gross proceeds of as much as $82 million from unit issuances and warrant exercises have all but strengthened the balance sheet, which should allow the company to complete a string of capital projects. The Company is also eyeing future expansions and acquisitions as it seeks to accelerate underlying growth.
Cannabis Supply Agreements
The signing of a letter of intent for the supply of cannabis to Quebec Market is another milestone that sets the stage for the Company to register robust revenue growth in 2019. Emerald Health Therapeutics is to supply cannabis from its Quebec-based Saint-Estate facility Verdélite as well as from its 50% owned joint venture Pure Sunfarms
The supply agreements pave the way for the Company to address a significant cannabis market given Quebec’s 8.4 million-population size.
“Verdélite is now near completion of the build-out of its 88,000 square foot indoor cultivation facility and has been scaling up production in licensed areas of the operation. We expect to be in full production and to also have nationwide distribution for the recreational market in the months ahead,” added Mr. Dhillon.
Emerald Health Therapeutics fundamentals are still strong despite a recent slump in share price. The Company reporting impressive financial results depicted by year-over-year sales increase underscores the underlying growth.
Increased cannabis production supplemented by a string of cannabis supply agreements points to what could turn out to be an impressive year as the Company embeds itself in the burgeoning Canadian cannabis market.
The stock remains well positioned to climb the ladder after the recent pullback, given the underlying fundamentals that continue to support further upside action.
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Disclosure: We have no position in EMHTF 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…