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.
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…