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Medicine Man Technologies Inc. (OTCMKTS:MDCL) Hits Buy Zone After Revenue And Net Income Beat

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Medicine Man Technologies

Record revenues representing a 168% year-over-year increase explain why Medicine Man Technologies Inc. (OTCMKTS:MDCL) shares are flying high. The confirmation that the acquisition of MedPharm Holdings and Medicine Man Denver will take the company’s annual run rate to over $40 million is another development that continues to ramp up the stock’s market sentiments.

Medicine Man Technologies Price Analysis

Just as was the case in the first quarter, Medicine Man Technologies has continued to edge higher as investors sentiments continue to inch higher. The stock is already up by more than 150% for the year after succumbing to bearish pressure in 2018.

A spike to two-year highs has reaffirmed the stock’s breakout credentials as it continues to outperform the overall cannabis market. A minor correction from the $4 a share handle to the $3 a share level appears to have paved the way for the stock to edge higher as a pullback play.

MDCL Daily Chart

Standing in the way of the stock registering a new higher high is the $4 a share resistance level. Failure to breach the resistance level could see the stock resorting to trading sideways in a $3 to $4 trading range.

Conversely, a sell-off followed by a close below the $3 a share mark could result in the acceleration of the sell-off back to the $2.30 support level.

What Does Medicine Man Technologies Do?

Medicine Man Technologies casts itself as an integrated operator in the cannabis sector. The company offers consulting cultivation supplies and equipment to licensed cannabis producers, processors, and retailers.

Why is Medicine Man Technologies Surging?

Medicine Man Technologies is flying high after delivering an impressive financial export for FY2018. Revenues for the 12-month ended December 31, 2018, increased 168% to $3.5 million. The company attributes the increase to an increase in new clients as well as expansion into new states that adopted cannabis legalization initiatives.

Gross profit for the year increased 208% to $6.9 million from $2.2 million reported a year earlier. Net income, on the other hand, skyrocketed to $2.2 million compared to a net loss of $5.2 million reported in 2017.

According to Chief Executive Officer, Andy Williams, 2019 is a pivotal year as they work on the next phase of growth.

“Our focus now is to leverage the entire management and leadership experience as we continue to further develop our growth strategies with the two pending acquisitions of Medicine Man Denver and MedPharm Holdings, LLC, expected to close in late 2019 or Q1 2020, in which post-acquisition is expected to generate a minimum of a $40+ million-a-year run rate,” explained Mr.  Williams.

MedPharm and Medicine Man Denver Acquisition

The MedPharm acquisition is a big achievement as the company comes with a cannabis research license that will allow Medicine Man Technologies to come up with pharmaceutical grade products.  In addition, the company’s two licensees MX LLC and MedPharm Iowa should help strengthen Medicine Man Technologies’ brand.

With the acquisition of Medicine Man Denver, Medicine Man Technologies will gain access to 4 Colorado retail locations as well as a 40,000 sq. ft.  cultivation operation. The acquisition is poised to add $25 million of annual revenue.

Medicine Man Denver acquisition would expose the parent company to industry-best harvesting operation and expertise that currently stands at 650 grams per square foot.

“These acquisitions will greatly benefit from our existing relationships in 18 states and seven countries. They will also position us to drive revenue through traditional partnerships only reserved for pharmaceutical companies as the only cannabis company with a federal research license,” explained Mr. Williams.

Separately Medicine Man Technologies has confirmed that one of its investors, Tigran Muradyan has joined the management team as a director of products. Under the role, the new director will work with the executive management team on the development and execution of an array of products and services in the effort of furthering the company’s revenue growth.

Muradyan has since invested $1 million into the company, on the purchase of 600,000 shares previously owned by Joshua Haupt.

What Next For Medicine Man Technologies

Medicine Man Technologies remains well positioned to continue edging higher as investors react to a string of positive developments that underscore underlying growth. After a minor correction, the stock is likely to power through the immediate resistance level, on its way to registering higher highs.

For early movers, the stock should be an exciting pull back play once it powers through the $4 resistance level.

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

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Is Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) A Good Bet Right Now?

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Neptune Wellness Solutions

There is no doubt 2019 was a tough year for the hemp/cannabis businesses. However, there are a few hemp/cannabis stocks that still managed to make their investors proud. Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) is one of those stocks. Investors who put their bet on Neptune at a time like this saw their investment increase 130% by July of last year.

Neptune Wellness Solutions is already off to a strong start in 2020. The stock has gained more than 15% in the past week alone. Looking at how Neptune has positioned itself in the hemp/cannabis market, you cannot dispute 2020 is shaping up to be a great year for the stock. Then you notice that Neptune insiders are deeply invested in the stock. Insiders own more than 17% of all shares in the company. The company’s market cap of $280 million shows that insiders alone have sunk $48 million in the stock.

You are about to find out more reasons why Neptune Wellness Solutions looks to be a good pick right now. But first, here’s what you should know about the company we’re discussing.

About Neptune Wellness Solutions

Neptune Wellness Solutions has been around since 1998 and is headquartered in Laval, Canada. It is engaged in the extraction, formulation, and packaging of value-added cannabis products for both Canadian and global markets.

This is shaping up to be Neptune’s year for a number of…

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Is Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) A Smart Pick?

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Tetra Bio-Pharma

Investors will remember that 2019 wasn’t a great year for cannabis stocks, especially Canadian stocks. Issues from uncertainty over Canada’s national elections to shortage of cannabis retail stores in Ontario greatly weighed on Canadian cannabis stocks last year. These problems are largely out of the way and investors can now spot cannabis stocks with a promising outlook in 2020. Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) is one play poised for a big breakout in 2020 as its drug products go on sale.

Tetra Bio-Pharma is one of the most promising cannabis stocks in 2020 and investors have really warmed up to the stock. At $0.50, Tetra stock has already gained more than 60% year-to-date. But that is just the beginning and we feel there is a great story to tell here. First, however, it is important for investors to understand the company we’re discussing.

About Tetra Bio-Pharma

For investors who may have just come across Tetra Bio-Pharma for the very first time, this is a Canadian cannabis company. It is focused on developing cannabis-based drugs for a variety of conditions, including cancer.

Tetra Bio-Pharma about to begin commercializing its drug products

As a drug company, Tetra Bio-Pharma is insulated from many challenges that face conventional cannabis companies. For example, companies that make adult-use cannabis products must cope with cutthroat competition in the market. Moreover, Canadian cannabis companies have Continue Reading

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Why Investors Are Warming Up To Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF)

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Fire & Flower Holdings

The disastrous 2019 taught investors the importance of carefully screening cannabis stocks for great picks that can withstand industrywide shocks. That explains why investors are warming up to Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF) in 2020.

Fire & Flower Holdings has positioned itself to take full advantage of the recently expanded cannabis market under Cannabis 2.0. Investors are realizing that FFLWF is one pick that can make a huge difference in their cannabis portfolio. Fire & Flower Holdings has already gained more than 25% year-to-date, a testament to the strong investor interest in the stock in 2020.

About Fire & Flower Holdings

Fire & Flower Holdings is a Canadian cannabis company. It operates as a cannabis product retail chain. It operates a network of dozens of cannabis retail outlets in Canada. FFLWF currently has licenses to operate cannabis retail stores in Alberta and Saskatchewan provinces. In addition, it runs a cannabis distributor business in Saskatchewan.

Investors will no doubt remember that 2019 was a tough year for the cannabis sector, with a widespread collapse of many cannabis stocks big and small. That shows why in 2020 investors are looking for cannabis stocks that can deliver excellent returns and make them forget the pain of the past year. FFLWF has emerged as one of the favorite cannabis stock picks for investors early on in 2020. There are several reasons behind that and here are…

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