The cannabis industry is indeed blossoming, and with legalization underway in the US, the industry will only get even better. The sector requires all sorts of support to continue growing and such aim is what KushCo Holdings Inc (OTCMKTS: KSHB) offers.
KushCo Holdings markets, sells as well as distributes packaging products and solutions such as bags, bottles, containers, and tubes for the marijuana industry in South America, Europe, and North America. Moreover, it oversees more than 18 sales portals alongside distribution facilities across Canada and the US.
KushCo Holdings Share Price Analysis
Price is meant to change, and for KushCo Holdings, a similar scenario has been observed all along. There has been an up and down fluctuation throughout this year with the last few days the stock showing some upward trajectory once again.
The stock’s sentiments received a boost in revenues in Q1 with the company delivering a 186% year-over-year increase. Currently, the stock’s price is at $5.15 and still showing signs of an upward trajectory.
Moreover, the positive developments that the company is undertaking will only shore the stock’s sentiments; hence, soon, we might see a massive move.
Notably, during the first quarter of 2019, the key driver to the price action activity was the massive signing of the long-term supply agreement of $75 million.
KushCo Holdings Recent Developments
At first glance, the company is a pleasant surprise. And complementing firm’s outlook, the stock remains to be a real business showing growing revenue. It’s the quality that distinguishes it from other stocks that are shaky ventures built just on hype.
So, What Has the Cannabis Company Done?
KushCo has simply carved out a clear niche in wholesale distribution of the packaging supplies and customized branding products. The approach the company used is merely rolling up the other companies instead of developing the products itself.
However, the going hasn’t been smooth for KushCo, but with the recent new certified biodegradable, composite as well as sustainable packaging solution, the company’s investor confidence looks to be strengthened.
Besides, it already signed a long-term development alongside a distribution agreement with IEKO for a new packaging solution. The solution is simply designed for unique demands of the marijuana sector featuring proprietary biodegradable materials from the renewable resources.
Notably, the company acquired a private investor and entrepreneur, Danny Mosses into its advisory board. Also, CNBC’s Tim Seymour will be part of the board that is expected to provide significant insight as well as knowledge on ways of pursuing opportunities in the sector.
Currently, California is the company’s top market with its revenue growing at a faster rate in various areas. Precisely, the sales Michigan and Massachusetts are sky-high as they have both legalized adult-use recreational cannabis on top of the medical cannabis.
Understandably, the legalization of hemp in the United States will also benefit KushCo as demand will also increase its packaging products.
The recent fiscal 2019 Q2 results showed it up that the company is indeed poised for a great future. The company’s revenue soared to an all-time high of about $35.2 million. The results were up 240% year-over-year while 39% quarter over quarter.
Furthermore, the firm increased its full-year revenue outlook, although not as much profitable as GTI may be. More importantly, despite the lag in margins, the company is pushing forward with intentions and great potential.
What’s Next for KushCo Holdings
As much as the cash flow, the profitability of the firm also remains elusive; the future looks promising. Due to poor liquidity, massive dilution was also inevitable, and hence, finance is required. But with the promising results of the Q1 report, KushCo Holdings looks a stock very well worth of keeping an eye on going forward.
Consequently, despite the struggle through the tight trading range, the stock is still destined for a thrilling ride given the array of developments it continues to make.
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Disclosure: We have no position in KSHB 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…