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Emerald Health Therapeutics Inc (OTCMKTS: EMHTF) Uptrend Still In Play

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Emerald Health Therapeutics

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.

EMHTF Daily Chart

Conversely, failure to hold above the $2.70 support level could result in the stock sliding back to the $2 a share level, which happens to be the next 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.

Recent Developments

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.

Bottom Line

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.

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Is Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) A Good Bet Right Now?

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Neptune Wellness Solutions

There is no doubt 2019 was a tough year for the hemp/cannabis businesses. However, there are a few hemp/cannabis stocks that still managed to make their investors proud. Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) is one of those stocks. Investors who put their bet on Neptune at a time like this saw their investment increase 130% by July of last year.

Neptune Wellness Solutions is already off to a strong start in 2020. The stock has gained more than 15% in the past week alone. Looking at how Neptune has positioned itself in the hemp/cannabis market, you cannot dispute 2020 is shaping up to be a great year for the stock. Then you notice that Neptune insiders are deeply invested in the stock. Insiders own more than 17% of all shares in the company. The company’s market cap of $280 million shows that insiders alone have sunk $48 million in the stock.

You are about to find out more reasons why Neptune Wellness Solutions looks to be a good pick right now. But first, here’s what you should know about the company we’re discussing.

About Neptune Wellness Solutions

Neptune Wellness Solutions has been around since 1998 and is headquartered in Laval, Canada. It is engaged in the extraction, formulation, and packaging of value-added cannabis products for both Canadian and global markets.

This is shaping up to be Neptune’s year for a number of…

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Is Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) A Smart Pick?

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Tetra Bio-Pharma

Investors will remember that 2019 wasn’t a great year for cannabis stocks, especially Canadian stocks. Issues from uncertainty over Canada’s national elections to shortage of cannabis retail stores in Ontario greatly weighed on Canadian cannabis stocks last year. These problems are largely out of the way and investors can now spot cannabis stocks with a promising outlook in 2020. Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) is one play poised for a big breakout in 2020 as its drug products go on sale.

Tetra Bio-Pharma is one of the most promising cannabis stocks in 2020 and investors have really warmed up to the stock. At $0.50, Tetra stock has already gained more than 60% year-to-date. But that is just the beginning and we feel there is a great story to tell here. First, however, it is important for investors to understand the company we’re discussing.

About Tetra Bio-Pharma

For investors who may have just come across Tetra Bio-Pharma for the very first time, this is a Canadian cannabis company. It is focused on developing cannabis-based drugs for a variety of conditions, including cancer.

Tetra Bio-Pharma about to begin commercializing its drug products

As a drug company, Tetra Bio-Pharma is insulated from many challenges that face conventional cannabis companies. For example, companies that make adult-use cannabis products must cope with cutthroat competition in the market. Moreover, Canadian cannabis companies have Continue Reading

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Why Investors Are Warming Up To Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF)

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Fire & Flower Holdings

The disastrous 2019 taught investors the importance of carefully screening cannabis stocks for great picks that can withstand industrywide shocks. That explains why investors are warming up to Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF) in 2020.

Fire & Flower Holdings has positioned itself to take full advantage of the recently expanded cannabis market under Cannabis 2.0. Investors are realizing that FFLWF is one pick that can make a huge difference in their cannabis portfolio. Fire & Flower Holdings has already gained more than 25% year-to-date, a testament to the strong investor interest in the stock in 2020.

About Fire & Flower Holdings

Fire & Flower Holdings is a Canadian cannabis company. It operates as a cannabis product retail chain. It operates a network of dozens of cannabis retail outlets in Canada. FFLWF currently has licenses to operate cannabis retail stores in Alberta and Saskatchewan provinces. In addition, it runs a cannabis distributor business in Saskatchewan.

Investors will no doubt remember that 2019 was a tough year for the cannabis sector, with a widespread collapse of many cannabis stocks big and small. That shows why in 2020 investors are looking for cannabis stocks that can deliver excellent returns and make them forget the pain of the past year. FFLWF has emerged as one of the favorite cannabis stock picks for investors early on in 2020. There are several reasons behind that and here are…

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