Stellar financial results for the first three months of the year followed by record monthly revenues explains why Halo Labs Inc (OTCMKTS: AGEEF) is flirting with record highs in the market. The stock has been on an excellent run, depicted by a 100% plus spike since the start of the year.
Halo Labs Catalysts and Price Analysis
Some of the catalysts fuelling the stock’s upside action include expansion into California and Nevada. Management cleansing the balance sheet with the elimination of toxic debt has also got investors exited.
Halo Labs has also inked a strategic partnership with Marketplace Eaze in a bid to accelerate sales growth through e-commerce. As it stands, the Company could be in for a record-breaking year, which explains why the stock is flying high in the market.
A rally to the $0.60 mark appears to have attracted some form of pullback, which could be attributed to investors taking profits. In our view, Halo Labs remains well positioned to post, fresh gains as a bounce back play once the correction phase comes to a halt.
The $0.48 mark is the immediate support level above which Halo Labs remains well positioned to continue edging higher as a pullback play. After a recent correction, the stock looks set to register another leg higher in continuation of the long-term uptrend. Conversely, a violation of the support level could result in the stock plunging back to the $0.35 mark, the next substantial support level.
About Halo Labs
Halo Labs casts itself as a cannabis extraction company engaged in the development and manufacturing of quality cannabis oils and concentrates. The Company boasts of expertise in all the major cannabis-manufacturing processes through the leveraging of proprietary processes and products.
Why is Halo Labs Primed for Further Gains?
Halo Labs is primed for further gains after a recent correction lower. The recent pullback has provided an opportunity for investors to buy the stock at a discount given the underlying fundamentals that support further upside action.
A solid earnings report underscoring growth in the core business is one of the catalysts that continues to strengthen investor confidence in the stock. For the first three months of the year, Halo Labs generated sales amounting to $8.7 million, representing a 302% year over year increase.
Management attributes the robust revenue growth to improving performance as well as expansion into the California and Nevada markets. In addition, the Company also benefited from an increase in cannabis oil sold that was up 280%.
The growth experienced in the first quarter look set to continue, as Halo Labs is fresh from reporting record monthly revenues of $3.6 million in April. As it stands, revenues could triple going forward thanks to the ongoing expansion into crucial cannabis marketplaces.
California Operations Growth
Operations in California are increasingly gaining traction having generated $5.3 million in revenue in the recent quarter. California operations are increasingly becoming a key driver of growth having generated an EBITDA OF $1.9 million consequently helping offset losses of -$299,371 in Nevada and -$618,400 in Oregon.
“California continues to be the driving force behind Halo’s revenue growth. With the implementation of new, proprietary products (e.g., DabTab™ Dablets) as well as implementing existing contracts, the Company is now operating at an annualized production rate of approximately $25MM USD,” Halo Labs in a statement.
Halo Labs has also inked a strategic partnership with marketplace Eaze as part of an effort of making products available on e-commerce for consumers in California and Oregon.
In addition to accelerating sales growth, Halo Labs has also set sights on keeping books of accounts clean, devoid of toxic debts. Conversion of debentures into common shares has since come into play resulting in the conversion of 8% of the Company’s unsecured convertible debentures.
Karan Sidhu, Chief Executive Officer of Halo, comments: “We are pleased by the recent conversion of the Debentures into common shares. As more of the debentures are converted, Halo’s debt burden is reduced, and our liquidity is increasing.”
Halo Labs is in the best
The stock is likely to resume its uptrend after a recent correction lower, as investors continue to react to a flurry of positive developments.
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Disclosure: We have no position in AGEEF 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…