KushCo Holdings Inc (OTCMKTS:KSHB) downtrend that started in September has eventually taken the stock to its one-year low of $1.29, which it plunged to on Monday (October 21). What might come next from here? Looking at KushCo’s strong fundamentals, the stock looks poised for a strong rebound from the current lows. Therefore, latest decline may have just created an opportunity for investors who can decipher KushCo’s bright outlook to get in the stock at a steep discount.
A rally back to $1.78, which is where the current downtrend began, should reaffirm KushCo’s rebound. And that would set the stage for further rally in the stock as it would pressure short-sellers to rush to cover their positions.
KushCo has potential to rise above $7.0. The stock soared to one-year high of $7.03 early this year.
KushCo describes itself as a premier producer and supplier of ancillary products and services to the cannabis and hemp industries. The company operates several subsidiaries and brands through which it serves a diverse customer base. KushCo has customers in North America, South America, and Europe.
Recent developments at KushCo
- KushCo signs product distribution agreement with Sentia. KushCo announced in October 8 that it secured a product distribution contract with cannabis products maker Sentia Wellness. KushCo said the Sentia deal represents the first of many cannabis products distribution businesses it hopes to secure under its new retail services division. KushCo did not disclose the financial terms of the Sentia deal. However, the deal will no doubt contribute to KushCo’s revenue growth.
- KushCo partners with De LaRue on cannabis products authentication. KushCo has teamed up with De La Rue to tackle the problem of brand counterfeiting in the cannabis industry. Through the partnership with De La Rue, KushCo has entered the business of providing anti-counterfeit packaging to cannabis products manufacturers to help them protect against brand forgery. Moreover, KushCo and De La Rue will create a digital verification system to help weed out fakes from the regulated cannabis supply chain.
Counterfeiting is a huge problem for brands. Counterfeits sucked $1.2 trillion in sales from legitimate brands in 2018. If the problem continues unchecked, brands could lose more than $1.8 trillion in sales to counterfeits by 2020. The stop brand forgery is fueling demand for anti-counterfeit solutions that KushCo will now provide through its partnership with De La Rue. The revenue opportunity for KushCo in anti-counterfeits market is huge. The global anti-counterfeit packaging market was worth $105.9 billion in 2018 and is poised to grow to $215.7 billion by 2027.
- KushCo boosts its cash reserve. KushCo last month launched a process to raise more than $30 million in cash through equity offering to boost its cash reserve. The company finished its third quarter with $12.2 million cash reserve. As it expands and diversify its business to drive more revenue growth, KushCo will need more cash to fuel its development.
“The Company intends to use the net proceeds for working capital and for other general corporate purposes,” KushCo said of its latest equity fundraising.
Upcoming events that could positively impact KushCo stock
- KushCo executives will present at Burns & Levinson Third Annual State of the Cannabis Industry Conference tomorrow (Wednesday, October 23). The presentation will provide an opportunity for KushCo to make investors aware of the critical roles it plays in the regulated cannabis industry and how it is well-positioned to ride the boom in the cannabis industry. Talking up KushCo’s achievements and opportunities could help boost investor interest in KushCo and provide a catalyst for the stock.
- KushCo about to report huge revenue growth: KushCo wrapped up its 2019 financial year on August 31. The company is still preparing a full financial report for the year. However, it has issued preliminary results that show it faired strongly in fiscal 2019. For example, KushCo expects to report fiscal 2019 revenue between $145 million and $150 million. That would be a huge leap forward compared to revenue of $52.1 million the company reported for fiscal 2018.
KushCo pullback presents an opportunity to enter this stock at steep discount before the expected powerful rebound as more investors take note of its b
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Disclosure: We have no position in OTCMKTS:KSHB 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…