GrowLife stock (OTCMKTS:PHOT) has dropped significantly and currently trades at one of its lowest price levels in more than three years. At $0.002, the stock is 96% off its 3-year peak. The decline that has brought GrowLife this low kicked off in July and gained momentum in September.
If we look at GrowLife’s investor relations site and go to the press release section, we see that GrowLife has issued several updates on its business activities and developments since July. On July 11, GrowLife announced that it secured a patent for the design of its commercial cloning unit in Canada. GrowLife stated that the patent affirms that its commercial cloning design is not only effective but innovative and proprietary. GrowLife believes its patented commercial cloning design will greatly expand its growth opportunity given the increasing demand for hemp and cannabis clones amid ongoing cannabis legalization.
On August 12, GrowLife released its financial results for the first half of 2019 in which it revealed 82% year-over-year revenue growth. On September 13, GrowLife updated on its CBD hemp clone sales strategy. GrowLife intends to start selling clones next year.
However, none of these positive updates from GrowLife helped halt the slide in its stock. GrowLife stock now looks to have bottomed out and a breakout is in the offing. A study of the charts shows purchasing GrowLife at its lows in the fall can deliver excellent returns.
About GrowLife stock
GrowLife serves the hemp and cannabis cultivation market. Its customers are commercial cultivators that it supplies with a range of products and services from cultivation equipment to nutrients as well as media services. GrowLife says its solutions help cultivators better control costs and tap into a more efficient supply chain. The company is headquartered in Kirkland, Washington.
History repeats itself
Back in 2015, a slide that began in September of that year pushed GrowLife to one of its record lows of $0.0031 by December. But in January of 2016, the stock abruptly halted the slide and made a sharp upward turn. By February 2016, the stock had climbed to $0.0641, delivering a 1,968% return in a space of just three months. The scenario repeated itself almost perfectly in the fall of 2016. A decline that kicked off in October of 2016 brought GrowLife down to one of its lowest price levels at $0.0071. But the stock wrapped up December of 2016 at $0.0215, thereby delivering a solid 203% return in a space of just two months. A similar performance played out in the fall of 2017, where the stock pulled from a low of $0.004 in October and wrapped up December at $0.328, thereby delivering a handsome 720% return in just two months.
Therefore, if the charts tell any story, GrowLife has a way of making investors who pick up the stock at its lows in the fall smile all the way to the bank in just a few months.
But beyond the historic chart trends, there are even more reasons to love GrowLife. Here are two reasons to be bullish on the stock.
- GrowLife continues robust revenue growth amid improving profitability
GrowLife released its third-quarter results on November 13. The company delivered a 141% year-over-year increase in revenue and gross profit expanded 1,256% year-over-year. In addition to growing revenue, GrowLife is exiting low performing businesses and this is allowing it to cut costs. For example, a recent exit of slow businesses has allowed the company to cut its expenses by $100,000 per month. Notably, GrowLife delivered solid results despite the third quarter typically being a slow period for the company.
“The summer quarter is usually challenging for GrowLife but demand for both GrowLife and EZ CLONE products remains strong,” commented GrowLife CEO Marco Hegyi.
- GrowLife poised to benefit from Canada’s expanded cannabis market
Canada last month moved to further expand its cannabis market with the legalization of more cannabis products for adult use. These include cannabis edibles, drinks, and smoking devices or vape pens. The sale of these newly legalized adult-use cannabis products will kick off next month. As a provider of hemp and cannabis cultivation solutions, GrowLife stands to benefit from the high demand for cannabis as a result of the expanded Canadian market. Experts expect the legalization of the new cannabis products to double Canada’s adult-use cannabis market to C$2.4 billion in 2020.
For investors who care to give GrowLife the benefit of doubt despite its huge plunge, buying the stock in the fall such as now could turn out to be a brilliant investment move.
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Disclosure: We have no position in Growlife stock and have not been compensated for this article.
Forget APHA and ACB, Buy GTBIF and TCNNF
There are a lot of misconceptions going on when it comes to US legalization. Many investors are buying Aphria (APHA) and Aurora Cannabis (ACB) hoping to bank on what’s happening in the US. However, they are Canadian Licensed Producers and have no business in the US. Investors are buying them because they trade on the major exchanges, but that is the wrong move. The correct move is to buy the US multi-state operators like Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF).
On Election Day voters in New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana. South Dakota and Mississippi voters also approved measures to legalize medical marijuana.
There’s also the prospect of a more pot-friendly White House with President-elect Joe Biden. Vice Presidential Candidate Kamala Harris said at the debate a Biden administration would decriminalize marijuana at a federal level and expunge criminal records of people with marijuana-related offenses.
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves.
Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection.
The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96…
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…