iAnthus Capital (OTCMKTS:ITHUF) has started rising from the dead after a rollercoaster 2019 that resulted in a significant loss of market value. The stock has raced higher as investors react to a string of positive developments that continue to affirm growth metrics and long-term prospects.
Robust revenue growth is one of the developments that continues to excite investors, consequently fuelling strong price performance in the market. In addition, iAnthus has embarked on an aggressive expansion drive that has seen it expand its footprint into key markets across the U.S in pursuit of new streams of revenues.
The stock looks set to continue its solid performance, given the high turnover of traded shares after bottoming out from one-year lows. The $1.10 level has since emerged as a support level from where the stock is likely to breakout.
The bounce-back faces immediate resistance at the $1.50 level. A rally followed by a close above the $1.50 level should affirm the stock’s break out credentials paving the way for a potential rally to the sub $2 level. Conversely, failure to take out the $1.50 level could leave the stock susceptible to further drops, probably back to the $1 level.
About iAnthus Capital
iAnthus is a cannabis-focused company that cultivates processes and distributes cannabis and its products across the U.S. The company also operates dispensaries facilities, consequently providing investors diversified exposures to the multibillion-cannabis industry. Headquartered in New York, the company operates over 20 dispensaries in eleven states across the U.S.
Why is iAnthus Capital bouncing?
iAnthus Capital price action activity received a boost on the company reporting impressive third-quarter financial results that strengthen the stock’s sentiments in the market. Revenues for the three months ended September 30, 2019 were up 30% sequentially, to $30.9 million.
Retail revenues were up 28% to $14.4 million, mostly driven by new customer retention and acquisition programs. Likewise, the company implemented cost control measures in a bid to shore up the bottom line. The result was a reduction in loss net of biological assets to $3.6 million from $6.9 million in the second quarter.
Gross margin inched higher to 48.1% from 47.9% reported in the second quarter. IAnthus benefited from lean initiatives in Massachusetts and Arizona that led to improvements in the overall gross margin. Gross profit consequently ticked higher 16.8% to $10.7 million from $9.2 million.
“The iAnthus team made significant progress in the third quarter. In three of our Greenfield states we are now generating well over a million dollars of revenue per month, our MPX brand is commanding a #1 market share position in several states, and we are executing on our operating efficiency and lean initiative plans,” said CEO Hadley Ford.
iAnthus Capital Expansion Drive
In addition to revenue growth and gross profit growth, iAnthus expanded its footprint with the opening of dispensaries in Miami Gainesville, Lakeland, and Bonita Springs as part of its expansion drive. The company maintains operations in 11 states as it continues to pursue licenses in other states. Similarly, the company increased its total production capacity by 11% to 5,900 pounds, having also invested in new equipment in Maryland as part of an effort of boosting processing capacity.
During the quarter, iAnthus also bought 27,000 square feet of cultivation space at its Florida Campus. The purchase is poised to double the company’s indoor canopy capacity to over 150,000 square feet. In Florida, the company operates eleven dispensaries.
Massachusetts is another cannabis market that iAnthus has set sights on. In the recent past, the company has secured regulatory approval for the construction of an adult-use retail dispensary. In 2020, the company intends to open two more adult-use dispensaries in the state.
Going by the investments made and the revenue run rate, iAnthus is on its way to generating positive EBITDA in 2020 and grow its enterprise value. With a cash balance of more than $25 million, the company remains well positioned to continue expanding its footprint into new markets as well as enhance its production capacity to meet the growing demand for cannabis products.
That said, the stock looks set to continue its solid performance after a recent bounce back from all-time lows. Impressive underlying fundamentals backed by favorable technical affirms why iAnthus is likely to continue bottoming out.
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Disclosure: We have no position in iAnthus Capital 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…