Liberty Health Sciences Inc (CNSX:LHS) (OTCMKTS:LHSIF) is one of the names leading the recovery of marijuana stocks following recent months of selloff that saw many marijuana stocks plunge to multiyear lows. Liberty gained 26% in November. Moreover, Liberty has gained more than 80% from its lowest watermark this year. The stock currently trades at $0.55.
The recovery in Liberty Health Sciences has come on the back of the company reporting strong quarterly results and advancement in efforts to federally legalize marijuana in the United States. Let’s look at each of these major Liberty stock drivers in little more detail.
On October 31, Liberty released its 2020 fiscal second-quarter financial results, which is for the three months ended August 31. Net revenue for that period increases 380% year-over-year to C$10.6 million. The revenue growth was driven by Liberty expanding its retail network, particularly the opening of more marijuana shops. Liberty also turned a profit, reversing a loss in the year-ago quarter. The strong financial results helped spark more investor interest in Liberty stock, which rose 30% soon after the results came out.
On November 20, the House Judiciary Committee passed the MORE Act, which seeks to decriminalize marijuana at the federal level. The bill promises to remove current barriers and significantly expand the domestic market for American marijuana companies like Liberty. Investors cheered the committee passage of the bill, driving up Liberty stock nearly 14%.
Liberty Health Sciences
For investors who may be learning about Liberty Health Sciences for the first time, here is a brief profile of the company. Liberty is a producer and retailer of marijuana products. It has several marijuana products brands to its credit already and continues to expand its product offering. Liberty has operations in Florida.
Here are four reasons you may want to buy Liberty stock this month
- Liberty stock still exhibits huge upside potential
Although Liberty is one of the names leading the recovery of marijuana stocks, it is still in the early stage of its breakout and there is a long runway ahead. At the current price of $0.55, the stock is still 40% below its 2019 peak and 98% below its all-time high. Therefore, Liberty stock has huge potential to deliver excellent returns from current levels.
- Liberty is well-capitalized to pursue its expansion goals
Not all marijuana companies out there have a ready pool of cash they can tap to fund their development projects. Therefore, Liberty stands out as one of the well-capitalized marijuana companies out there. The company finished its 2020 fiscal second quarter with C$24 million in cash reserve. In fact, the reserve grew from C$13 million in the previous quarter.
Liberty is currently in expansion mode. The company is working to increase its Florida production, expand its distribution network, which it is doing through the opening of more retail outlets. The company currently operates 19 marijuana shops in Florida, up from eight in January. Moreover, Liberty is working to expand its product portfolio to be in every segment of the marijuana market in Florida.
On product portfolio expansion side, Liberty recently added a vape pen to its product offering in partnership with Grenco Science.
When complete, the expansion drive should allow Liberty to generate more revenue, profit and build a stronger war chest for future development.
- Liberty has huge growth potential in its Florida market
Florida is one of the most promising marijuana markets in the United States. Florida’s marijuana sales generated around $630 million in revenue in 2018. That is expected to almost triple to $1.6 billion by 2022. Therefore, Florida is on track to become the third-largest marijuana market by revenue in the US. But we are only talking about the sale of medical marijuana products because that is what is currently approved in the state. There are efforts to make recreational marijuana also legal in Florida, which if successful would significantly expand Liberty’s market opportunity in the state.
- Liberty management doing a great job to clear investor doubts about marijuana stocks
Some investors still have doubts about marijuana stocks. That stems from the fact that marijuana business is new and the industry is not currently well-established as say financial services or technology industries. But that doesn’t mean there are no great investment opportunities in the marijuana sector. Liberty management understands that keeping investors on the loop is a great way to tackle the trust problem that still persists in the marijuana sector. Therefore, every few days or weeks Liberty issues updates on its business, from the progress it has made recently to what it plans to do next.
Liberty Health Sciences’ recovery so far confirms that this is a marijuana stock that can pull up from the bottom and deliver decent returns. The company’s strong financials, ongoing expansion, and transparent management further make it an attractive marijuana stock to own now.
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Disclosure: We have no position in Liberty Health Sciences 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…