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Why Green Organic Dutchman Stock (TSE:TGOD) (OTCMKTS:TGODF) Is A Bounce Back Play

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Green Organic Dutchman stock

Green Organic Dutchman Stock (TSE:TGOD) (OTCMKTS:TGODF) is in dire need of groundbreaking catalysts if it is to bounce back after taking a significant hit over the past year. The stock is languishing near all-time lows after a roller coaster 2019. The plunge coincided with a sell-off wave gripping the overall cannabis industry.

Green Organic Dutchman Stock Catalysts and Price Analysis

Widening net loss is one of the tailwinds that continued to take a toll on Green Organic Dutchman stock sentiments. Amidst the disappointment on the earnings front, Green Organic Dutchman has continued to strengthen its prospects in the cannabis industry. For starters, the company has made its much-awaited entry into the recreational cannabis industry.

Construction of facilities to ramp up cannabis cultivation and processing has also come into play as the company seeks to secure its future and prospects in the multibillion-dollar industry. For instance, the company has already commissioned a 20,000 square foot indoor cultivation facility in Ancaster. Likewise, Green Organic Dutchman stock has strengthened its balance sheet through capital raises.

Amidst the milestones on operational efficiency, Green Organic Dutchman stock has remained subdued amidst soaring selling pressure. After plunging by more than 50% to lows of $0.52, the stock might as well have hit bottom and due for a correction as a bounce-back play.

To avert further slide, Green Organic Dutchman stock will have to rise and find support above the $0.80 mark, the immediate resistance level. A rally followed by a close above the resistance level should fuel a rally as a bounce-back play.

Failure to take out the $0.80 resistance level would leave the stock susceptible to further drops in continuation of the long-term downtrend.

About The Green Organic Dutchman

Green Organic Dutchman casts itself as a premium certified organic cannabis company engaged in the cultivation and production of cannabis and its derivatives. In Canada, the company is currently working on expanding its product portfolio with the launch of next-generation cannabis products. the company also maintains operations in Europe whereby it is currently distributing premium hemp CBD oil through HemPoland

Ancaster Facility Construction

Green Organic Dutchman has, in the recent past, ramped up operations on the construction of the cannabis production facility in Ancaster. The facility is at the center of the company, becoming a leader in the cultivation processing and distribution of premium hemp products.

Similarly, the company has closed a $42.7 million credit facility with Maynbridge Capital Inc. The credit facility consists of $27.7 million in senior secured term loans and an additional uncommitted $15 million senior secured term loan. The Green Organic Dutchman intends to use net proceeds from the credit facility to finance the completion of its processing facility in Ancaster and for general corporate purposes.

The closing of the credit facility came hot on the heels of the company closing a $27.6 million bought deal upon the issuance of 36.8 million units priced at $0.75 a unit. Proceeds from the offering are also to go towards completing the construction of the processing facility in Ancaster.

British Columbia Purchase Order

The Green Organic Dutchman is ramping up the construction of the Ancaster facility to support a big purchase order it has received from the BC Liquor Distribution Branch. With the purchase order, the company can now distribute its products to 527 retail locations across five provinces in Canada.

“We believe the province represents an enormous market opportunity for our brand. As we continue ramping up production, we remain focused on expanding our distribution channels and achieving our goal of distributing nationally in Q1 2020,” commented Brian Athaide, CEO of TGOD.

Similarly, the company has obtained a license amendment from Health Canada that opens the door for it to commence cultivation at its hybrid greenhouse in Valleyfield, Quebec. The company will now be able to cultivate cannabis in a state of the art 46,500 square feet greenhouse.

By ramping up cannabis cultivation and processing operations, the company should be able to enhance revenue growth to curtail the widening of net loss. The company generated a $20.1 million net loss in the quarter, which consequently triggered a cost-cutting drive of $3 million per quarter.

Bottom Line

While Green Organic Dutchman stock has been beaten up over the past year, the worst looks to be over for shareholders in 2020. The construction of the Ancaster cannabis facility has the potential to strengthen the company’s operations, especially on the signing of a massive purchase order with British Columbia.

The company has the financial muscle to pursue strategic initiatives as well as ramp up operations in the cannabis sector in pursuit of revenue opportunities. In our view, the stock has hit a bottom, and due for a correction higher as underlying fundamentals continue to improve.

We will be updating our subscribers as soon as we know more. For the latest updates on Green Organic Dutchman stock, sign up below!

Disclosure: We have no position in Green Organic Dutchman stock 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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