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 substantial resistance level.

What Does Namaste Technologies Do?

Namaste Technologies operates as a cannabis e-commerce Company. The firm retails vaporizers as well as smoking accessories through its e-commerce site that is available in 26 countries. The Company is also involved in product design as well as manufacturing activities targeting cannabis products.

Financial Results

Namaste Technologies price action activity is poised to receive a boost on the posting of the much-awaited financials results. The stock has come under immense pressure as investors reacted to delays on the release of financial results for the past fiscal year.

The financial report indicates that the Company’s revenues for the fifteen months ended November 30, 2018, totaled $23.8 million, more than double revenues amounting to $10.98 million reported for the twelve months ended August 31, 2017.  The cost of goods nearly doubled to $17.7 million compared to $9.6 million reported for the 12 months ended August 31, 2017.

Amidst the revenue growth, Namaste Technologies reported a wider than expected net loss of -$41.6 million for the fifteen months ended November 30, 2018, compared to a net loss of -$17.4 million for the 12 months ended August 31, 2017.

Management Appointments

The filling of the financial results comes on the heels of Namaste Technologies, confirming the appointment of new members into the management hierarchy. According to the interim Chief Executive Officer, Meni Morim, the new members bring strength and oversight at a crucial time when the Company is exploring strategic initiatives

Pursuant to the changes, Andy” Wilczynski is to join the board of directors as Faraaz Jamal assumes the role of vice president of marketing and strategy. Andrew Buckman has also been appointed to the Advisory Board.

“We have added strength, oversight, experience, and vision to increase our capacity to achieve our corporate milestones and regain our focus on growth. These three individuals each bring a wealth of history and operational excellence with proven results. These individuals bring new energy and will be instrumental in reinvigorating and reshaping Namaste’s future,” said Mr. Morim.

Bottom Line

Namaste Technologies has not had the best of runs in 2019 if recent price action activity is anything to go by. Wild price swings, up and down, has been the order of the day as investors continued to question the Company’s long-term prospects.

The uncertainty could, however, come to an end following the filling of audited financial results. The appointment of new members into the board, with vast experience, is another development that should continue to prop the stock’s sentiments among investors.

The stock has started rebounding from all-time lows following the exit of former CEO. With the focus now shifting to pursuing growth in the cannabis sector, the future can only be bright, as the stock appears to have hit the floor. Namaste Technologies is likely to continue bottoming out on rallying and finding support above the $0.66 level.

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