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.
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.
Decision Diagnostics Corp (OTCMKTS:DECN) Explodes On COVID-19 Test Kit Opportunity
Decision Diagnostics Corp (OTCMKTS:DECN) is exploding higher after unveiling a new methodology for the screening of coronavirus. GenViroTM COVID-19 screening kit is the latest catalysts fuelling the stock’s price action activity in the market. Similarly, the stock has rallied by more than 300% as investors take note of the huge opportunity up for grabs as the coronavirus pandemic continues to cause havoc.
OTCMKTS:DECN Price Analysis
The ever-growing demand for coronavirus test kit presents a unique opportunity for the company to generate significant value. In return, investors have continued to push the stock higher even as the broader equity market continues to plunge into the bear territory.
OTCMKTS:DECN is currently trading in a steep uptrend after succumbing to bearish pressure in 2019. Given the strength of the upward momentum, the stock is closing in on its one-year highs as the break out shows no signs of slowing down. A rally followed by a close above the $0.08 mark should open the door for bulls to push the stock to two-year highs.
Similarly, the $0.05 mark is the immediate support level above which the stock remains a bull play. Conversely, a breach of the support level would leave Decision Diagnostics susceptible to further drops, probably back to the $0.03 level. However, given the developments on the global scene, the stock looks set to continue powering high on pullbacks.
Decision Diagnostics bills itself…
Is CytoDyn Inc. (OTCMKTS:CYDY) A Buy?
CytoDyn Inc (OTCMKTS:CYDY) has been making big moves lately, which have propelled the stock from December low of $0.270 to new highs. Notably, CytoDyn’s surge has come on significant volume as well, a clear sign of strong investor interest in the stock.
The excitement in CytoDyn stock that we are witnessing right now comes as the company has taken a leading role in the fight against the deadly Wuhan coronavirus. Moreover, investors have started pouring on CytoDyn stock as the company advances the development of its lead drug candidate as a treatment for about two dozen different cancer types.
Before we delve into the details, here is a brief profile of CytoDyn for those investors who may have just come across this company for the very first time.
CytoDyn operates in the healthcare sector as a biotechnology company. It is engaged in developing innovative treatments for a broad range of medical indications. Its lead product candidate is leronlimab (PRO 140). Clinical trials of leronlimab are ongoing for conditions such as HIV and multiple cancers with impressive results already attained. But CytoDyn is expanding its target conditions with leronlimab in the wake of the outbreak of the Wuhan coronavirus.
Here are some of the recent developments at CytoDyn that have excited renewed investor interest in its stock.
CytoDyn’s leronlimab under consideration as Wuhan potential coronavirus treatment
CytoDyn’s lead drug candidate leronlimab (PRO 140)…
Rainmaker Worldwide Inc (OTCMKTS:RAKR) Looking For Bagholders
On the OTC Markets, there are a lot of pump and dumps. Investors need to protect themselves from these types of scams and one, in particular, is Rainmaker Worldwide Inc (OTCMKTS:RAKR).
OTCMKTS:RAKR Price Action
While the price action recently has been positive, it’s just a matter of time before RAKR is trading in the double zeros again. It’s not a question of if it will happen, but when it will happen.
About Rainmaker Worldwide
According to its profile, Rainmaker Worldwide Inc. is headquartered in Peterborough, Canada, with an innovation and manufacturing center in Rotterdam, Netherlands. Its patented water technology provides economical drinking water wherever it’s needed and at scale. Rainmaker builds two types of energy-efficient, fresh water-producing technologies to participate in this opportunity. 1. Air-to-Water, which harvests fresh water from humidity in the atmosphere. 2. Water-to-Water, which transforms seawater or polluted water into drinking water.
Lack of Fundamentals
The biggest concern facing investors is the lack of fundamentals. OTCMKTS:RAKR has a current market cap of $41 milli0n, but reported just $1000 in sales in the quarter ending September 30, 2019. Making matters worse is that Rainmaker burned through $524,000 in the quarter. Throughout its history, Rainmaker has lost $14.7 million.
EU Horizon 2020 Project and $2.5 million grant
Last September, Rainmaker touted the award of the European Union (EU) Horizon 2020 Project for Rainmaker’s Water to Water Product. According to the press…