Marimed Inc (OTCMKTS: MRMD) has taken a significant hit in recent months after a solid start to the year. The stock is already down, after a 40% plus correction from this year highs. While the pullback is a point of concern, the Company has served a string of catalysts that could fuel a bounce back from current lows.
MRMD Catalysts And Price Analysis
The confirmation that the hemp and cannabis operator is poised to acquire a 70% stake in MediTaurus is a development poised to strengthen the stock’s market sentiments. With the acquisition, MariMed will gain access to a robust portfolio of intellectual property patent for cannabis formulations.
The acquisition could not have come at a better time given that MariMed is fresh from reporting year over year increase in revenues as well as EBITDA growth for fiscal 2018. The Company has also inked a strategic partnership with Ilo Vapor for the distribution of its flagship product DabTab brand dablets on the East coast.
Amidst the string of positive developments, the stock has continued to edge lower after succumbing to bearish pressure. After a recent pullback, the stock is staring at critical support at the $2.40 mark. Above the support level, the stock remains supported for further upside action as a bounce-back play.
However, a violation of the $2.40 support level on further sell-offs could result in the stock edging lower in continuation of the emerging downtrend. For MariMed to turn bullish after the recent sell-off, then it will have to rally and take out the $4 a share resistance level.
What Does MariMed Do?
MariMed is a hemp and cannabis operator focused on improving health and wellness with the highest quality hemp and cannabis products. The Company is engaged in the distribution of a full range of cannabis products supported by a network of medical and adult use cannabis dispensaries in six states.R
MariMed market sentiments, which have taken a hit in recent months, are likely to edge higher on the confirmation it is poised to acquire a 70% stake in MediTaurus. This is the first acquisition as part of the Company’s push to optimize its strategic investment in GenCanna Global Inc.
With the acquisition, the Company gains access to the Florance brand of CBD health and wellness products as well as extensive intellectual property relating to cannabis formulations.
The Company’s sales efforts should receive a boost as MediTaurus comes with a robust network of pharmacies as well as wholesalers and online distributors that it uses to distribute its Florence CBD health brand.
The acquisition is also poised to jump start MariMed Hemp division given that Florance boasts of an established premium line of CBD health and wellness products as well as formulas in both the U.S and the EU.
“Florance™ provides a ready platform for new product introductions, including diversity of the uses of hemp including food, food supplements and topical. MariMed will help rapidly scale up production, distribution and licensing partnerships throughout the major U.S. markets where MariMed operates and sells,” explained MariMed CEO Bob Fireman.
MariMed also remains well positioned to tap the benefits that MediTaurus has to offer when it comes to research experience and expertise of its founders.
In addition to the MediTaurus acquisition, MariMed reporting a 118% increase in Q4 revenue and a 95% full-year revenue growth is another development that continues to strengthen the stock’s market sentiments. Q4 2018 revenues came in at $3.4 million compared to $1.58 million reported a year earlier. Full year revenues, on the other hand, skyrocketed to $11.85 million from $6.07 million as of 2017.
“We are encouraged that the Company maintained its strong operating performance and dynamic growth. We made a series of key investments to leverage opportunities we see for the years ahead, from branding and marketing to a major investment in GenCanna Global, perhaps the world’s leader in industrial hemp genetics and production,” stated Mr. Fireman.
East Coast Expansion
MariMed has sought to accelerate sales growth by expanding its footprint into the East Coast. The signing of an agreement with Ilo Vapor paves the way for the Company’s flagship DabTab brand dablets to be made available in Rhode Island, Massachusetts as well as Delaware dispensaries.
MariMed is a potential bounce-back play, despite shedding significant market value on succumbing to bearish pressure in recent months. A flurry of positive developments from MediTaurus acquisition to revenue growth as well as expansion to the East Coast are some of the developments that should continue to shore up market sentiments. The stock is likely to bottom out after a recent pullback.
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Disclosure: We have no position in MRMD and have not been compensated for this article.
Hemp Inc (OTCMKTS: HEMP) Bottoming Out
Hemp Inc (OTCMKTS: HEMP) is still struggling to steer clear of the bears. Since late April, the stock has faced continued downside price action from short-sellers. However, there is clear potential for the company to enter a bull market.
Hemp Share Analysis
The last year has been a rollercoaster experience for Hemp Inc. The stock has been fluctuating between $0.02 and $0.06 for the longest time, and some investors might have grown weary. While this is understandable, what is clear is that the stock price seems to have hit bottom and can only go up next.
From late November to mid-December 2018, there was massive activity in terms of moving HEMP shares. There was a huge interest in the stock which was probably due to the legalization of the cultivation of Hemp in the US via the 2018 Farm Bill. The legislation came in the period where Canada had just legalized marijuana, and the demand for hemp-derived cannabidiol (CBD) was on the rise.
However, the cannabis sector is still growing and, as such, there is a lot of uncertainty, especially regarding regulations. Canada may be the first industrialized country to legalize weed, but the US remains an important market which should have a clear official position in the industry.
After the clearance of hemp cultivation in the US, HEMP has actively engaged in various expansion activities to…
Hemp Inc (OTCMKTS: HEMP) Bulls Gaining Traction
Hemp Inc (OTCMKTS: HEMP) has struggled for direction after coming under immense bearish pressure, resulting in a 50% slide. In recent weeks, the stock has resorted to trading in a tight trading range of between $0.02 and $0.03, on the lack of catalysts to fuel the upward momentum. However, not anymore.
HEMP Catalysts And Price Analysis
A confirmation that the Company registered an 1800% increase in sales for the full year ended December 31, 2018, could as well be the catalyst to fuel a bounce back from current lows. The steady increase underlines underlying growth at a time when demand for cannabis products is on the rise.
The Company has also provided a 2019 outlook that underscores expected growth as management focuses attention and resources to transforming Hemp Inc. into a full-blown marketing entity.
With the stock currently, trading at the $0.02 level, a rally could be in the offing given the formation of a bullish spiking channel. The formation of higher lows in recent weeks signals a stock due for a correction higher as a bounce-back play.
The $0.03 mark is the immediate resistance level standing in the way of the stock spiking high in continuation of the emerging uptrend. Hemp finding support above the $0.03 level should open the door for it to make a run for the $0.04 mark, the next critical resistance level.
Above the $0.04 level, the stock would…