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Emerald Health Therapeutics Inc (OTCMKTS:EMHTF): A Screaming Bargain On Robust Sales Growth

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OTCMKTS:EMHTF

A third consecutive quarter of double sales growth could be the groundbreaking catalyst to strengthen Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) sentiments and prospects in the market. The stock has already started bottoming out, after feeling the full force of short-sellers for the better part of the year.

OTCMKTS:EMHTF Price Analysis

After a 60% plus plunge, Emerald Health Therapeutics might as well have hit a bottom and due for a correction higher. Improving underlying fundamentals depicted by robust sales growth is one of the catalysts that continues to strengthen investor confidence in the stock.

In addition to sales growth, the company has also continued to bolster its balance sheet with capital raised through public offerings. The raising of additional capital leaves the company well-positioned and financed to pursue strategic initiatives expected to reinvigorate growth.

OTCMKTS:EMHTF has since bounced back from the $0.21 level, signaling a brewing uptrend. The $0.60 is the immediate resistance level standing in the way of the stock powering high from current lows. A rally followed by a close above the $0.60 should affirm the stock’s break out credentials from current lows.

Conversely, failure to take out the $0.60 level could leave OTCMKTS:EMHTF susceptible to further drops in continuation of the long-term downtrend. Considering a recent uptick in market sentiment amidst improving fundamentals, Emerald Health Therapeutics looks set to continue its bounce back.

About OTCMKTS:EMHTF

Emerald Health is engaged in the production and distribution of medical cannabis in Canada. Formerly known as T- Bird Pharma, the company is also engaged in the production of natural health products as well as recreational and wellness-oriented products.

Sales Growth Boost

OTCMKTS:EMHTF market sentiments have ticked up in recent weeks on the company reporting impressive financial results for the three and nine months ended September 30, 2019. The company reported $9.3 million worth of sales for the third quarter, more than double, sales reported in the second quarter.

In addition to sales growth, the company reported a second consecutive quarter of positive EBITDA at $2.4 million as total SG&A expenses shrunk to $10.1 million from $12.4 million. However, the company plunged to a $17.5 million net loss impacted by $2.8 million in inventory write down.

Emerald Health Therapeutics 50% joint venture Pure Sunfarms was also on a roll reporting a fourth consecutive quarter of positive EBITDA. The joint venture reported $24 million in net sales helped by a 50% increase in sales volume.

In addition to sales growth and positive EBITDA, Emerald Health Therapeutics achieved key milestones in the quarter that continue to affirm long-term prospects. Top on the list was the expansion of shipments to ten provinces and territories, expected to continue facilitating revenue growth. Likewise, the company’s joint venture Pure Sun Farms rose the ranks to become one of the most competitive producers of high-quality CBD in Canada.

OTCMKTS:EMHTF has also confirmed it expects an increase in cannabis production following the planting at its wholly owned indoor premium facility. The company also continues to strengthen its product line with the unveiling of a new line of oil and pre-roll products.

Restructuring

In a bid to shore up the balance sheet and bottom line, the cannabis-focused company completed restructuring in the third quarter that resulted in the reduction of the workforce. Internal re-organization should allow the company to streamline operations crucial to enhancing efficiency and productivity

“Our primary asset, our 50%-owned Pure Sunfarms joint venture, has rapidly distinguished itself as a high-performing asset. We are putting our energy into building out complementary business opportunities with distinct positioning to meet the needs of adult-use and wellness-oriented consumers, and taking steps to realize positive cash flow and achieve profitability in 2020,” said Riaz Bandali, President and Chief Executive Officer of Emerald

Separately the company has closed a $2.5 million secondary sale that further strengthens the balance sheet. The capital injection should allow the company to pursue strategic initiatives crucial to generating long-term value.

Bottom Line

OTCMKTS:EMHTF is increasingly showing signs of recovering after a harrowing plunge. The stock’s market sentiments have received a boost as robust sales growth continue to affirm the core business as well as long-term prospects.

Recent price action activity provides evidence that a positive trend is materializing on the stock hitting a bottom. With the stock currently trading at a discount relative to strong fundamentals and long-term prospects, it is highly likely it will continue to power higher from current levels.

We will be updating our subscribers as soon as we know more. For the latest updates on OTCMKTS:EMHTF, sign up below!

Disclosure: We have no position in OTCMKTS: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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