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 a few notable ones.
FFLWF achieves cannabis retail stores opening milestone
As a cannabis retail business, Fire & Flower Holdings knows that its strength lies in having enough number of stores to serve cannabis consumers in Canada. More importantly, the company understands the value of planting its stores in strategic locations.
Fire & Flower Holdings had 30 stores in November 2019 and set out to have 45 cannabis retail stores up and running by February 2020. But it has achieved that target several weeks in advance. On January 13, the company announced that it now has a network of 46 cannabis retail stores open and operating.
Reaching the store opening milestone ahead of target no doubt demonstrates FFLWF’s commitment to keeping its promises to shareholders. FFLWF looks to open more stores across Canada, which should allow it to make more sales and become profitable quickly. The company reported revenue increase of 443% year-over-year to C$13.7 million in fiscal 2019 third quarter ended November. The strong revenue growth saw operating loss for the quarterly nearly halving to C$5.9 million from C$10.4 million a year earlier.
Ontario is firmly on Fire & Flower Holdings radar right now. The Ontario provincial administration last month announced steps to address the cannabis retail shops shortage in the province. Therefore, from this coming Apri,l the Ontario administration wants to enable the opening of 20 stores every month. There were only about 25 stores across Ontario at the end of 2019, yet the province has the largest population in Canada with more than 14 million people. Efforts to address cannabis stores shortage in Ontario presents an attractive opportunity for FFLWF to widen its retail network and capture more sales and create value for shareholders. Store shortage is thought to have kept big cannabis demand in the black market. Therefore, easing the store shortage problem in Ontario would help grow the legal cannabis market in Canada quickly.
Fire & Flower Holdings Cannabis 2.0 products go on sale in Saskatchewan
Fire & Flower Holdings became one of the first cannabis retailers to stock the newly approved adult-use cannabis products when sales for those products opened last month under what the industry fondly calls Cannabis 2.0. FFLWF began the sale of its Cannabis 2.0 products in Saskatchewan, thanks to its wholesale business in the province. The company is initially selling cannabis edibles such as cannabis-infused chocolate, mints, and gummies. It also sells cannabis smoking devices or vape pens. Cantor Fitzgerald analysts estimate that Cannabis 2.0 could double Canada’s adult-use cannabis market to C$2.4 billion in 2020. That is why being a first-mover with Cannabis 2.0 products positions FFLWF well in Canada’s cannabis market.
Many of last year’s challenges are out of the way for FFLWF
The broad collapse of cannabis stocks last year stemmed from several factors that dented investor confidence in the sector. They included uncertainty over Canada’s national elections and the shortage of cannabis shops in Ontario. These concerns are now largely out of the way. The election issue is settled with the pro-cannabis government of Prime Minister Justin Trudeau back in office. In Ontario, the administration there has started addressing the retail store shortage problem and that should help take cannabis demand from the black market, which will benefit FFLWF.
Fire & Flower Holdings looks poised for a breakout in 2020 on the back of strong fundamentals. FFLWF management is also doing a great job keeping investors informed. 2020 looks to be a big year for Fire & Flower Holdings.
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Disclosure: We have no position in Fire & Flower Holdings 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…