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iAnthus Capital (OTCMKTS:ITHUF) Climbing the Ladder On Improving Fundamentals

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iAnthus Capital

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.

Bottom Line

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.

We will be updating our subscribers as soon as we know more. For the latest updates on iAnthus Capital, sign up below!

Disclosure: We have no position in iAnthus Capital and have not been compensated for this article.

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Is Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) A Good Bet Right Now?

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Neptune Wellness Solutions

There is no doubt 2019 was a tough year for the hemp/cannabis businesses. However, there are a few hemp/cannabis stocks that still managed to make their investors proud. Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) is one of those stocks. Investors who put their bet on Neptune at a time like this saw their investment increase 130% by July of last year.

Neptune Wellness Solutions is already off to a strong start in 2020. The stock has gained more than 15% in the past week alone. Looking at how Neptune has positioned itself in the hemp/cannabis market, you cannot dispute 2020 is shaping up to be a great year for the stock. Then you notice that Neptune insiders are deeply invested in the stock. Insiders own more than 17% of all shares in the company. The company’s market cap of $280 million shows that insiders alone have sunk $48 million in the stock.

You are about to find out more reasons why Neptune Wellness Solutions looks to be a good pick right now. But first, here’s what you should know about the company we’re discussing.

About Neptune Wellness Solutions

Neptune Wellness Solutions has been around since 1998 and is headquartered in Laval, Canada. It is engaged in the extraction, formulation, and packaging of value-added cannabis products for both Canadian and global markets.

This is shaping up to be Neptune’s year for a number of…

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Is Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) A Smart Pick?

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Tetra Bio-Pharma

Investors will remember that 2019 wasn’t a great year for cannabis stocks, especially Canadian stocks. Issues from uncertainty over Canada’s national elections to shortage of cannabis retail stores in Ontario greatly weighed on Canadian cannabis stocks last year. These problems are largely out of the way and investors can now spot cannabis stocks with a promising outlook in 2020. Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) is one play poised for a big breakout in 2020 as its drug products go on sale.

Tetra Bio-Pharma is one of the most promising cannabis stocks in 2020 and investors have really warmed up to the stock. At $0.50, Tetra stock has already gained more than 60% year-to-date. But that is just the beginning and we feel there is a great story to tell here. First, however, it is important for investors to understand the company we’re discussing.

About Tetra Bio-Pharma

For investors who may have just come across Tetra Bio-Pharma for the very first time, this is a Canadian cannabis company. It is focused on developing cannabis-based drugs for a variety of conditions, including cancer.

Tetra Bio-Pharma about to begin commercializing its drug products

As a drug company, Tetra Bio-Pharma is insulated from many challenges that face conventional cannabis companies. For example, companies that make adult-use cannabis products must cope with cutthroat competition in the market. Moreover, Canadian cannabis companies have Continue Reading

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Why Investors Are Warming Up To Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF)

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Fire & Flower Holdings

The disastrous 2019 taught investors the importance of carefully screening cannabis stocks for great picks that can withstand industrywide shocks. That explains why investors are warming up to Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF) in 2020.

Fire & Flower Holdings has positioned itself to take full advantage of the recently expanded cannabis market under Cannabis 2.0. Investors are realizing that FFLWF is one pick that can make a huge difference in their cannabis portfolio. Fire & Flower Holdings has already gained more than 25% year-to-date, a testament to the strong investor interest in the stock in 2020.

About Fire & Flower Holdings

Fire & Flower Holdings is a Canadian cannabis company. It operates as a cannabis product retail chain. It operates a network of dozens of cannabis retail outlets in Canada. FFLWF currently has licenses to operate cannabis retail stores in Alberta and Saskatchewan provinces. In addition, it runs a cannabis distributor business in Saskatchewan.

Investors will no doubt remember that 2019 was a tough year for the cannabis sector, with a widespread collapse of many cannabis stocks big and small. That shows why in 2020 investors are looking for cannabis stocks that can deliver excellent returns and make them forget the pain of the past year. FFLWF has emerged as one of the favorite cannabis stock picks for investors early on in 2020. There are several reasons behind that and here are…

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