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.
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…