Flowr Corp (CVE:FLWR)(OTCMKTS:FLWPF) had an excellent start to 2019 rallying by more than 40% to one year high before coming under immense bearish pressure in the second half of the year. After experiencing a deep pullback, Flowr stock is once again trying to make a comeback.
Flowr Stock Catalysts and Price Analysis
A confirmation that the company is on its way to cash flow break-even in the second half of the year is one of the catalysts that continues to strengthen the stock’s market sentiments. With insider ownership standing at more than 50%, the board’s interest remains aligned with that of current and future investors.
While the company’s third-quarter revenues did fall short of expectations, the ramping up of production activities as well as sales and marketing activities continue to affirm the company’s long-term prospects. The focus in 2020 is on scaling up the business as Flowr Corporation seeks to reinvigorate its growth prospects and pursue opportunities for growth globally.
That said, it does not come as a surprise that the stock has started experiencing positive price gains as well as an increase in trading volumes in the market. After consolidating near all-time lows for months, Flowr stock has once again started bouncing back in what appears to be the materialization of a positive uptrend.
The $2 zone is the immediate resistance level standing in the way of Flowr breaking out from one-year lows. A rally followed by a close above the $2 mark should pave the way for bulls to push the stock to the $3 zone.
Conversely, failure to take out the $2 resistance level would leave the stock susceptible to further drops in continuation of the long-term downtrend.
About Flowr stock
Headquartered in Toronto, Canada, Flowr Corporation is a cannabis-focused company with operations in Canada, Europe, and Australia. The company boasts of a purpose-built GMP designed indoor cultivation facility in Kelowna BC. From the facility, the company produces and distributes recreational and medicinal products for domestic use and exploration.
The cannabis industry has come under immense pressure in recent months, with a majority shedding a substantial amount of market value. Pricing pressure and growing investors’ concerns about companies’ ability to generate profits are some of the tailwinds that have seen a number of investors shun the sector.
While Flowr Corporation is one of the stocks that has underperformed in the industry, the tide is slowly changing. The Chief Executive Officer, Vinay Tolia, has already confirmed they remain open to raising additional capital. Additional capital should help the company pursue opportunities for growth as well as execute on global growth strategies.
“Despite the recent market volatility, we continue to be bullish on the growth opportunities in our businesses globally in 2020 and beyond. As we stated in our Q3 update, we believe we’ll be cash flow break-even in the second half of 2020 with the capital available to us today,” said Mr. Tolia
Europe Australia Expansion
The sentiments came hot on the heels on the company completing the acquisition of an 80.2% interest in Holigen Holdings Limited in the Third quarter. The acquisition paves the way for the creation of a cannabis company with access to over 7 million square feet in EU-GMP compliant outdoor-grown cannabis. Likewise, the acquisition should allow Flowr Corporation to expand and strengthen its prospects in the European and Australia medicinal markets.
Likewise, Flowr Corporation has strengthened its financial position with the closing of a $43.5 million equity financing and a $25 million credit facility. A solid financial position should allow the company to ramp up cannabis cultivation and processing activities to address the growing demand for medical and recreational cannabis.
Flowr stock has ramped up sales and marketing operations as it looks to accelerate revenue growth after falling short of expectations in the third quarter. Likewise, the company has ramped up the construction of production facilities, as it looks to ramp up its production capacity.
The ramping up of cannabis production should allow the company to expand its operations in Europe. Likewise, a solid financial position should help support strategic initiatives crucial to the generation of long-term value.
That said, Flowr stock looks set to continue bottoming out as it is currently trading at a discount relative to the company’s tremendous potential and improving fundamentals.
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Disclosure: We have no position in Flowr stock and have not been compensated for this article.
Forget APHA and ACB, Buy GTBIF and TCNNF
There are a lot of misconceptions going on when it comes to US legalization. Many investors are buying Aphria (APHA) and Aurora Cannabis (ACB) hoping to bank on what’s happening in the US. However, they are Canadian Licensed Producers and have no business in the US. Investors are buying them because they trade on the major exchanges, but that is the wrong move. The correct move is to buy the US multi-state operators like Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF).
On Election Day voters in New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana. South Dakota and Mississippi voters also approved measures to legalize medical marijuana.
There’s also the prospect of a more pot-friendly White House with President-elect Joe Biden. Vice Presidential Candidate Kamala Harris said at the debate a Biden administration would decriminalize marijuana at a federal level and expunge criminal records of people with marijuana-related offenses.
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves.
Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection.
The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96…
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…