A streak of poor performance triggered by soaring short selling pressure raises serious concerns about Future Farm Technologies Inc (OTCMKTS: FFRMF) long-term prospects. The stock is languishing close to all-time lows, after shedding more than 80% in market value over the past year.
Future Farm Technologies Price Analysis
Investor and market sentiments appear to have hit all-time lows as the stock has struggled to bounce back. The underperformance comes as a surprise given that the broader cannabis sector has turned bullish following recreational use legalization in Canada and the passing of the 2018 Farm Bill in the US.
With market sentiments at all-time lows, only groundbreaking catalysts will reinvigorate investor sentiments in Future Farm Technologies to trigger a bounce back. One of the developments that could help prop the stock’s markets sentiments and price action activity is the confirmation that the company is poised to launch an aggressive Cannabis growing spree.
Future Farm Technologies is in the final stages as it prepares to propagate its 2019 hemp-for wellness crop in Belfast Maine. The company intends to grow Cherry Wine cultivar in over 100 acres in Hersey Maine.
It awaits to be seen if the cultivation spree will help trigger bounce back as Future Farm Technologies languishes at the $0.13 level in the market. After the recent plunge, the stock will have to retake the $0.14 level to avert further slides in the short term.
Above the $0.14 mark, the stock would be well positioned to take out the $0.19 mark, which happens to be the next resistance level. Below the $0.19 resistance level, Future Farms Technologies remains engulfed in a bearish trend and likely to continue edging lower.
What Does Future Farm Technologies Do?
Future Farm Technologies is a holding company with operations in North America. The company’s core business entails advancing sustainable agriculture through the production of wholesale and retail cannabis products. The company collaborates and acquires licensed cannabis operators to develop leading technologies in cannabis production.
As the share price continues to edge lower, Future Farm Technologies management are working round the clock to commence the 2019 cannabis-growing season. The management is eyeing a harvest of over 120,000 pounds of biomass on growing Cherri Wine cultivar in a 100 acres farmland in Hersey Maine.
Future Farms Technologies intends to process all the harvest into full spectrum hemp oil, CBD distillate and CBD isolate for sale to manufacturers. In addition, the company expects to produce over 2 million hemp seeds in 2019, nearly double 2018 levels.
“We have been focused on caring for the seeds we are about to grow since we harvested them in 2018 because they have outstanding genetics that provide high propagation rates and high CBD content. It’s always exciting for me, as a farmer and a manager, to see that first sprout,” explained Zachary Lapin, General Manager of Future Farm Maine.
The grow season comes on the heels of Future Farm Technologies confirming that Cherry Wine hemp seeds produced as part of 2018 harvest have been feminized. The company now has over 1.2 million hemp seeds for sale that it is selling through its e-commerce platform.
“The revenue generated by these seeds enables us to improve all aspects of our operations in Maine, which we expect to result in a robust yield of CBD oil and distillate on a per acre basis. The lessons learned and revenue realized from the 2018 harvest are creating a trajectory that every successful company hopes for,” comments William Gildea, CEO of Future Farm Technologies.
Future Farm Technologies is struggling to recover from harrowing crash amidst soaring bearish pressure. The fact the underperformance comes on the heels of the broader cannabis sector turning bullish continues to arouse serious concerns.
While the stock boasts of tremendous potential as the company commences cannabis cultivation, it might be wise to wait for further confirmation to see whether the stock will bounce back.
A long term descending trend line continues to cap upside action. However, the stock taking out the $0.19 resistance level should reaffirm suggestions of a potential bounce back. For now, it might be wise to take a back seat and wait for further confirmation as the stock remains vulnerable.
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Disclosure: We have no position in FFRMF and have not been compensated for this article.
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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).
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