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.
Terra Tech Corp (OTCMKTS: TRTC) A Bounce Back Play As Net Loss Narrows And Gross Margins Expand
Terra Tech Corp (OTCMKTS: TRTC) has retraced lower ever since it clocked 2019 highs at the end of the first quarter. The stock has crumbled under soaring bearish pressure. Amidst the steep pullback, the stock is a potential bounce-back play as it is currently trading at the lower end of a tight trading range.
Terra Tech Price Analysis
A plunge to the lower end of the $0.63 to $1 trading range leaves the stock in a precarious position. A plunge lower could elicit further selling pressure while a bounce back could result in the stock making run for this year highs.
In our view, the stock could bounce back on investors reacting to a string of positive developments that affirm the Company’s prospects. For starters, Terra Tech is fresh from launching a legal cannabis delivery services as it continues to pursue growth opportunities in California.
The Company is also fresh from delivering impressive financial results that indicate gross margin expansion as net loss from operations continues to narrow. The sale of Blum Desert is another development poised to strengthen the company’s financial position.
Terra Tech commencing cannabis sales to the adult use market should continue to excite investor’s, ideal for fuelling an upswing in the stock’s price action activity. With the stock appearing to have hit the floor after the recent pullback, a correction higher could be in the offing at the lower end of the trading range.
Namaste Technologies Inc (OTCMKTS: NXTTF) A Bounce Back Play On Robust Revenue
Namaste Technologies Inc (OTCMKTS: NXTTF) has had to contend with wild price swings, as investors reacted to delays in the filling of audited financial results and ousting of Sean Dollinger as the CEO. That could soon change, as the Company has come through and filled results that affirm robust revenue growth.
Namaste Technologies Price Analysis
However, concerns over widening net loss could hurt the stock’s sentiments in the market, at a time when it is in dire need of, groundbreaking catalysts to avert further slides. While the stock has bottomed out, it remains engulfed in a long-term bear trend.
The descending trend line could attract short selling pressure on the filling of negative news that arouse concerns about the Company’s long-term prospects. A spike to the $0.65 level essentially means the stock is at a critical resistance level.
Failure to rally and find support above the resistance level could elicit some form of selling that could see the stock trading sideways. Immediate support on any pullbacks from current highs is seen at the $0.40 mark.
A sell-off followed by a close below the $0.40 mark could result in Namaste Technologies resuming its downtrend, as has been the case for the better part of the past year. Conversely, a rally followed by a close above the $0.66 mark should pave the way for the stock to make a run for the $1.20 mark, seen as the next…
Cannex Capital Holdings Inc. (OTCMKTS: CNXXF) A Long-Term Play Despite Price Slump
A strategic merger with 4Front coming on the heels of Pure Ratios holding acquisition affirms why Cannex Capital Holdings Inc (OTCMKTS: CNXXF) prospects can only get better despite the recent price slump. The transformational events expand the Company’s operations into six U.S states signaling push for market value in the burgeoning cannabis sector.
Cannex Price Analysis
While Cannex has taken a significant hit in the market, it is still up for the year after an excellent start that saw it rally by more than 200%. The stock has since pulled lower in what appears to be a correction phase.
The ongoing pullback has since exposed the stock to a crucial support at the $1 a share level. A breach of the support level would leave the stock susceptible to further drops probably back to the $0.80 mark, a critical technical level.
For the stock to resume its uptrend, it first needs to rise and stabilize above the $1.20 mark, the immediate resistance level. The stock rallying and finding support above the $1.2 mark would open the door for bulls to fuel a rally back to 52-week highs.
Cannex is a diversified company that leases real estate properties and sells supplies to cannabis cultivators. The Company also offers financial services as well as branding and IP services to licensed cannabis operators. It is also focused on premium indoor cultivation extraction and branding of edible…