Leafbuyer Technologies, Inc. (OTCQB:LBUY) Is Bouncing Back: Here’s The Story You Don’t Want To Miss

After retreating about 95% from its one-year highs to hit record lows for the year, Leafbuyer Technologies, Inc. (OTCQB:LBUY) is bouncing back. What is driving the stock and what could you expect from here?

LBUY continues to grow its sales at above industry average and the company now has a clear path to profitability. Moreover, Senator Bernie Sanders has outlined a plan that could significantly expand the market and funding opportunities for cannabis companies like LBUY. In this article, we take you through company-specific strengths and industry developments that could provide more upward lift to LBUY. But first, here’s a look at what LBUY does as a company.

About LBUY

LBUY bills itself as a leading cannabis marketing and technology company. LBUY, based in Colorado, operates a platform that serves both consumers and businesses. For consumers, the LBUY platform helps them find cannabis shops near them. For businesses, LBUY’s platform helps them market their products and build a loyal customer base.

Behind LBUY’s bounce back

The LBUY rebound comes on the company of the company providing a peek into its strength and potential as well as renewed efforts to expand America’s cannabis market.

• LBUY growing its sales at double-digit rate and above the industry average. LBUY’s cash sales for the quarter ending September 30, 2019 increased 27% compared to a similar period last year. That growth is higher than industry average of 24%. As sales surge, LBUY now sees a clear path to profitability. The company now aims to become profitable in the first half of 2020.

“While some of our competitors cut personnel, we successfully doubled our sales and support teams to manage the increased demand for our products and services,” commented Kurt Rossner, CEO of LBUY.

• Sanders sets cannabis legalization a priority. Senator Bernie Sanders is one of the leading candidates seeking Democratic presidential nomination. In fact, his popularity has surged in the latest poll. Sanders has seen the suffering of cannabis businesses and consumers and has made helping them a priority for his administration if he becomes president next year. Sanders last week (October 24) outlined a plan to legalize cannabis at the federal level. Although some 33 states have legalized cannabis, the substance remains prohibited under federal laws. However, Sanders plans to make cannabis legal at federal level within 3 months after taking the White House. Sanders will not wait for Congress to help him legalize cannabis. He plans to do it through executive action. Support for cannabis legalization has surged in the US.

Legalizing cannabis at federal level should expand both the market and financing opportunities for cannabis companies like LBUY. Presently, LBUY can only legal provide its services in 33 states. But federal legalization of cannabis would see LBUY’s market expand to all the 50 states. Moreover, big banks currently are afraid of doing business with cannabis companies, lest they run into trouble with federal regulators. However, legalizing cannabis at federal level should free the big banks to serve cannabis companies, and that could make access to credit easier for companies like LBUY.

LBUY stock catalysts

CBD.io acquisition to supercharge LBUY’s already soaring sales. LBUY is currently in talks to acquire Las Vegas-based trade show operation CBD.io. According to LBUY, CBD.io operates one of the largest and most visible cannabis expos. LBUY expects the acquisition of CBD.io to double its revenue.

LBUY wants to enter the big data game. LBUY looks to use its data resource to expand its business by entering the big data space. For example, LBUY wants to use the data it collects from visits to its platforms to help cannabis companies better understand the needs of their target customers. For LBUY, going to big data should help open a new revenue stream for the company.

Bottom line

The latest rebound in LBUY may just be the beginning of bigger things to come going by the company’s development plans we’ve examined and the growing support for federal cannabis legalization in the US. LBUY is one of those cannabis stocks with bright prospects that could deliver handsome results to investors. As LBUY makes the rounding bottom and turns higher, LBUY is one cannabis stock that needs to be on every pot stock investor’s radar.

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