Green Thumb Industries Inc (OTCMKTS: GTBIF) is flirting with key support from where it will likely post another leg higher in continuation of the emerging uptrend. An excellent start to the year saw the stock rally by more than 60% after a steep pullback late last year.
GTBIF Catalysts And Price Analysis
The trigger behind the recent upswing is an impressive earnings report for the full year ending December 31, 2018. The company delivering a 278% year-over-year increase in revenue all but continues to excite investors.
In the recent past, the Stock’s market sentiments have inched higher on the company positioning itself for robust sales growth, through retail network expansion. The company has continued to open new retail stores targeting some of the biggest and fastest growing cannabis marketplaces. Ohio and Florida are some of the states the company is targeting on as part of the expansion drive.
The stock taking a flight could as well signal
With the stock flirting with a critical support level, a spike higher in continuation of the uptrend that began early in the year could be in the offing. Standing in the way of the stock posting another leg higher is the short-term $16 resistance level.
A rally followed by a close above the $16 mark could result in the stock making a run for 52-week highs of $22. Conversely, failure to hold above the $13 mark could result in the stock edging lower, probably back to the $11 mark, seen as the next support level.
What Does Green Thumb Industries Do?
Green Thumb Industries is a cannabis-focused company engaged in the manufacturing, distribution, and sale of cannabis products. The company offers cannabis flower, processed and packaged products as well as edibles and topical.R
Retail Network Expansion
While the stock has pulled lower in recent weeks, the pullback could as well be a minor correction pending further movements on the upside. One of the developments poised to fuel further upside action is the confirmation that the company is strengthening its operations in Ohio with the opening of two Rise stores.
The company intends to expand its national cannabis retail concept with the opening of the Rise Lorain and Rise Toledo stores in Ohio. The openings will take the company’s retail footprint to 18 stores with licenses to open an additional 77 locations.
“We are honored to be the first company to open up access to medical marijuana in Toledo and Lorain and be so warmly welcomed into these communities. Rise™ is focused on helping people exercise their right to wellness through meticulous customer care and a curated assortment of cannabis products that bring relief and improve the quality of daily life,” explained CEO Ben Kovler.
Ohio expansion comes on the heels of Green Thumb Industries opening its second retail location in Florida as it continues to strengthen its retail footprint across the country. The Rise retail store located in Deerfield Beach will supplement the Company’s cannabis cultivation and production operations at a manufacturing facility in Homestead.
Retail network expansion is part of an effort of strengthening the company’s sales network buoyed by the success of last year. A 278% year-over-year increase in sales saw Green Thumb Industries deliver revenues of $62.5 million. For the full year the company generated an EBITDA of $2.7 million and an Adjusted EBITDA of $21.5 million.
Green Thumb Industries ended 2018 with current assets valued at $187.3 million. Cash and Cash equivalent as of the end of the year stood at $146 million. According to the CEO, the focus for 2019 is to execute on strategic priorities key among them being the establishment of a leading brand portfolio. The management also intends to accelerate retail growth through new store openings in addition to consumer loyalty.
Green Thumb Industries impressive run in the market is set to continue despite the recent pullback. Underlying fundamentals depicted by robust revenue growth as well as the retail network expansion should continue to excite investors thus fuel further upside action.
A pullback lower might as well have presented an opportunity to buy a stock, with tremendous opportunity, at a discount.
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Disclosure: We have no position in GTBIF and have not been compensated for this article.
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…
Is Cronos Stock (TSE:CRON)(NASDAQ:CRON) A Buy?
Cronos Stock (TSE:CRON)(NASDAQ:CRON) stock fell 9.22% on January 24, marking its steepest decline so far in 2020. The stock plunge followed an important disclosure that you would only expect from a company that is trying to be straight and transparent with investors. Here’s what happened.
On January 22, after market close, Cronos made a regulatory filing detailing changes in its executive team. In that SEC filing, Cronos revealed that David Hsu and William Hilson have stepped down as its chief operating officer and chief commercial officer, respectively. Unfortunately, some investors read bad news in the executive exits and sold their shares in Cronos.
But a careful reading of the filing doesn’t seem to raise any red flags. Therefore, the big stock plunged points to investors panicking to the degree of responding to a mosquito bite with a missile.
There is no doubt that 2019 was a difficult year for cannabis stocks and Cronos Stock is no exception. But before the uncalled for reaction to Cronos’s regulatory filing, we had been at a point where sellers were starting to give way to buyers in Cronos stock. The stock has gained about 8.0% in the past one month. It had gained more than 13% year-to-date before the January 24 big selloff.
About Cronos Stock
Cronos Stock is a Canada-based global cannabis company. Cronos operates through subsidiaries and…