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GrowGeneration Corp (NASDAQ:GRWG) May Be The Pot Stock To Own Right Now




GrowGeneration Corp (NASDAQ:GRWG) is one of the marijuana stocks leading the sector’s recovery from the recent big selloff that saw many marijuana stocks fall to their 2-year lows. GrowGeneration has strongly bounced back, delivering beautiful returns for investors. The stock has risen almost 40% from its recent low of $3.40 in October. It is up nearly 90% from its 2019 all-time low.

Still, GrowGeneration has more room to rally. The stock currently trades about 30% below its peak. As you are about to see below, there are more catalysts to propel the stock to greater highs. You may want to reserve a seat for this flight.


GrowGeneration is a specialty retailer focused on selling hydroponic and organic gardening equipment and related supplies. Its target customers are commercial and home growers, including marijuana cultivators. GrowGeneration currently operates 25 specialty stores across several states including California and Colorado. Its goal is to eventually operate 1,000 stores across the US.

Why GrowGeneration upgrading its stock listing to Nasdaq is a big deal

GrowGeneration announced on Monday that it has secured the approval allowing it to upgrade the listing  of its stock from OTC Markets currently to the Nasdaq Capital Market (NASDAQ). GrowGeneration shares will commence trading on NASDAQ on December 2.

Upgrading the stock listing to NASDAQ will bring many benefits to GrowGeneration and its shareholders. Firstly, listing on NASDAQ will increase investor awareness of the stock, which could in turn draw more investors to the stock and lift the price. Secondly, listing on NASDAQ will boost liquidity of the stock. Finally, listing on NASDAQ promises to boost the stock’s appeal to institutional investors, which could in turn drive up big demand for the stock and drive the price to greater highs.

NASDAQ:GRWG continues robust growth and maintains profits

GrowGeneration released its third quarter financial results on November 11. The company reported solid numbers across the top and bottom lines. Revenue increased 159% year-over-year and came at $21.8 million. Net profit topped $1.0 million, marking a sharp reversal of fortunes from a loss of $0.8 million in the year-ago quarter. The robust revenue growth and profit go show how GrowGeneration’s management has gotten better at balancing investments and cost control.

The strong third quarter results prompted GrowGeneration to lift its 2019 revenue guidance for the third time. The company now expects its 2019 full-year revenue to come in the band of $74 million – $76 million. GrowGeneration originally forecast 2019 full-year revenue in the range of $52 million – $58 million. But it bumped up the guidance to a range of $60 million – $65 million after reporting first quarter results. It again lifted the full-year revenue target to a range of $65 million – $70 million after reporting second quarter results.

GrowGeneration finished the third quarter with $30.4 million of working capital and $16 million in cash reserve, which provides adequate financial flexibility for the management to continue investing in growth. GrowGeneration has been opening more stores to improve its customer accessibility and drive sales in turn.

“We continue to invest in technology and infrastructure, while improving the financial performance of the Company in all areas,” commented Darren Lampert, CEO of GrowGeneration.

Signs point to a bright future for NASDAQ:GRWG

GrowGeneration has great growth potential. Currently, the has only established footprint in a handful of US states where marijuana is legal. That goes on to show the company still has plenty of room to grow in the existing marijuana market in the US. Moreover, even in the states where GrowGeneration has entered, there is still more room to grow. For example, GrowGeneration currently operates only five stores in California, the largest marijuana market in the US. It has also only opened five stores in Colorado, another big US marijuana market.

GrowGeneration’s growth potential looks even greater considering the ongoing efforts to legalize marijuana under the federal level in the US. The House lawmakers recently passed a bill that seeks to make marijuana legal under federal laws. Previously, the House passed a bill that seeks to allow federally regulated banks to do business with marijuana companies in states where pot is legal. Senate lawmakers also have their own programs to legalize marijuana.

The US marijuana market generated $10.5 billion in sales last year, according to ArcView Market Research and BDS Analytics estimates. That represents business is the 33 states where marijuana is legal. US marijuana sales are projected to reach $13.1 billion this year and rise to $22.2 billion in 2022. Federal legalization of marijuana would see the US marijuana market grow even faster, and GrowGeneration stands to benefit from such growth.

In addition to the US, GrowGeneration plans to enter Canada’s marijuana market as well. Canada last year became the first developed nation to fully legalize marijuana. Canada’s marijuana sales were $1.2 billion in 2018 and are expected to jump to $5.9 billion by 2022.

Bottom line

The ongoing marijuana legalization efforts around the world means that marijuana companies generally face a bright future because of the widening market opportunity. Even so, marijuana companies with solid financials and strong management are hard to come by. That is why NASDAQ:GRWG is a rare breed in the marijuana stocks universe.

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Disclosure: We have no position in NASDAQ:GRWG and have not been compensated for this article.

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Featured Stocks

Why Lexaria Bioscience Corp (OTCMKTS:LXRP) Is A Comeback Play



Lexaria Bioscience

Lexaria Bioscience Corp (OTCMKTS:LXRP) brightest days lie ahead. The sentiments shared by Chief Executive Officer, Chris Bunka, are slowly coming to fruition, going by recent price action activity. After a steep pullback in 2019, the stock has once again started climbing higher, as investors react to milestones achieved in 2019 that affirm long-term prospects.

Lexaria Bioscience Catalysts and Price Analysis

A confirmation that the global innovator in drug delivery systems achieved almost everything it set out to accomplish in 2019 continues to strengthen market sentiments. The inking of strategic partnerships with Fortune 500 style companies is another development that the management continues to tout.

Likewise, Lexaria Bioscience succeeded in getting its DehydraTECH technology to market, consequently creating an avenue for generating long-term value. The company’s Intellectual Property strategy has also started to pay dividends, affirming what is at stake going forward. Reports that the company is already experiencing an increase in revenues is another catalyst that continues to shore the stock’s sentiments and prospects in the markets.

Lexaria Bioscience has already started bottoming out from all-time lows in what appears to be the development of a positive trend. A 10% plus rally from one-year lows continue to fuel optimism that the stock has clocked a bottom and due for a correction higher.

Standing in the way of the emerging uptrend is the $0.50 mark, which is the immediate short-term resistance level. A rally followed by a close above the…

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Helix TCS Stock (OTCMKTS:HLIX): A Fundamentally Attractive Investment



Helix TCS stock

Helix TCS Stock (OTCMKTS:HLIX) is turning out to be an interesting pick after a steep pullback in 2019. The stock appears to be trading at a big discount going by the solid fundamentals that support a bounce back from current lows. If you are looking for a company seeing plenty of opportunities on the horizon then Helix TCS stock fits the bill.

Helix TCS Stock Catalysts and Price Analysis

The company is currently ranked at number 32 on the Deloitte Technology 500 fastest growing companies. The impressive rating stems from the company reporting impressive financial results depicted by an 80% increase in revenue and a 39% increase in cash flow from operations.

Likewise, the company has moved to strengthen its prospects in the hemp business by launching the nation’s first hemp tracking system. Similarly, the company has inked a strategic partnership with Alt Thirty Six for the launch of digital payments targeting thousands of dispensaries across the U.S

Reports that Helix TCS BioTrack traceability stem processed over $11 million transactions in the first week of recreational sales attest to what could turn out to be a break out year for the company and its technology.

It thus does not come as a surprise that the company’s stock has started to pick up some steam after a roller coaster 2019. A 10% plus rally since the start of the year affirms renewed investor interest in response to the wave of…

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Why OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) Is A Promising Stock In 2020



OWC Pharmaceutical Research

In 2020, investors are looking for cannabis stocks that can deliver excellent returns following a disappointing 2019, which saw many pot stocks crash to multiyear lows. OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) stands out as a promising cannabis stock to own in 2020.

About OWC Pharmaceutical Research

The cannabis stock universe is vast, so for investors who may have just come across OWC Pharmaceutical for the first time an introduction of the company is in order.

OWC Pharmaceutical is an Israel-based cannabis research company. It is focused on research and development of cannabis-based medical products. The company’s work currently includes development of cannabis-based treatments for a variety of diseases and disorders such as multiple myeloma, psoriasis and fibromyalgia.

Moreover, OWC Pharmaceutical provides consulting services to both government and private entities in the field of medical cannabis programs.

OWC Pharmaceutical Research exited 2019 on a high note

While 2019 ended up being one of the toughest year for cannabis stocks, OWC Pharmaceutical had strong finish to the year. The stock gained 35% on December 31. Before that, the stock rose 65% on December 30. The back-to-back gains in the final days of 2019 helped OWC Pharmaceutical cut its losses for the year but also signaled improving investor sentiment on the stock heading into the new year.

OWC Pharmaceutical finished 2019 at $0.089, having pulled from a low of $0.0045 at the beginning of December.


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