Namaste Technologies Inc (OTCMKTS: NXTTF) A Bounce Back Play On Robust Revenue - MJ Global Report
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Namaste Technologies Inc (OTCMKTS: NXTTF) A Bounce Back Play On Robust Revenue

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Namaste Technologies

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.

NXTTF Daily Chart

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.

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MJ Stocks

Terra Tech Corp (OTCMKTS: TRTC) A Bounce Back Play As Net Loss Narrows And Gross Margins Expand

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Terra Tech

Terra Tech Corp (OTCMKTS: TRTC) has retraced lower ever since it clocked 2019 highs at the end of the first quarter. The stock has crumbled under soaring bearish pressure. Amidst the steep pullback, the stock is a potential bounce-back play as it is currently trading at the lower end of a tight trading range.

Terra Tech Price Analysis

A plunge to the lower end of the $0.63 to $1 trading range leaves the stock in a precarious position. A plunge lower could elicit further selling pressure while a bounce back could result in the stock making run for this year highs.

In our view, the stock could bounce back on investors reacting to a string of positive developments that affirm the Company’s prospects. For starters, Terra Tech is fresh from launching a legal cannabis delivery services as it continues to pursue growth opportunities in California.

The Company is also fresh from delivering impressive financial results that indicate gross margin expansion as net loss from operations continues to narrow. The sale of Blum Desert is another development poised to strengthen the company’s financial position.

Terra Tech commencing cannabis sales to the adult use market should continue to excite investor’s, ideal for fuelling an upswing in the stock’s price action activity. With the stock appearing to have hit the floor after the recent pullback, a correction higher could be in the offing at the lower end of the trading range.

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Cannex Capital Holdings Inc. (OTCMKTS: CNXXF) A Long-Term Play Despite Price Slump

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Cannex Capital Holdings

A strategic merger with 4Front coming on the heels of Pure Ratios holding acquisition affirms why Cannex Capital Holdings Inc (OTCMKTS: CNXXF) prospects can only get better despite the recent price slump. The transformational events expand the Company’s operations into six U.S states signaling push for market value in the burgeoning cannabis sector.

Cannex Price Analysis

While Cannex has taken a significant hit in the market, it is still up for the year after an excellent start that saw it rally by more than 200%. The stock has since pulled lower in what appears to be a correction phase.

The ongoing pullback has since exposed the stock to a crucial support at the $1 a share level. A breach of the support level would leave the stock susceptible to further drops probably back to the $0.80 mark, a critical technical level.

CNXXF Daily Chart

For the stock to resume its uptrend, it first needs to rise and stabilize above the $1.20 mark, the immediate resistance level. The stock rallying and finding support above the $1.2 mark would open the door for bulls to fuel a rally back to 52-week highs.

About Cannex

Cannex is a diversified company that leases real estate properties and sells supplies to cannabis cultivators. The Company also offers financial services as well as branding and IP services to licensed cannabis operators. It is also focused on premium indoor cultivation extraction and branding of edible…

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MJ Stocks

Canopy Rivers Inc (OTCMKTS: CNPOF) Poised For Take-Off

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Canopy Rivers

Canopy Rivers Inc (OTCMKTS: CNPOF) is still fluctuating around the 50-day moving average but looks poised for a major take-off. In our last coverage, we acknowledged the significance of the price action which implied the stock was ripe for a bounce from a minor correction.

CNPOF Share Price Analysis

In January 31 2019, Canopy Rivers’ stock attained the highest price year-to-date at $4.43 after a strong start to the year. At the time, the stock had established support at $2.85. However, the stock crossed the 50-day moving average in March sloping downwards in what looks like minor correction. In the last two months, the stock has traded quite close to the MA (50) trend-line and a little jump should bring in the bulls for a massive rally.

In the previous analysis, we noted that key developments including the supply agreement closed by PharmHouse Inc., a portfolio company, were bolstering the strength of the stock’s tailwinds. Further, our analysis indicated that Canopy Rivers was prime for an uptrend due to increasingly positive market sentiment. Also, the stock took out the psychologically important $3 resistance level. Essentially, we concluded that CNPOF was a bounce back play.

CNPOF Daily Chart

Recall that it is just under two weeks our last update on CNPOF and the stock is already up 0.6% at $3.22 a share. In the two weeks, the…

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