A selloff that kicked off in September has brought Organigram Holdings Inc. (TSE:OGI) (NASDAQ:OGI) down to one of its lowest price levels in more than one year. Several factors have contributed to Organigram’s decline to current lows.
Firstly, you can blame the uncertainty that gripped investors as Canadians headed to the polls last month to elect their prime minister. The incumbent Justin Trudeau, whose administration has been very supportive to the development of cannabis industry in Canada, was seeking re-election.
But as the election drew near, it became clear that Trudeau re-election was facing a tough challenge from a conservative candidate. Cannabis investors feared that a win for the conservatives could lead to rollback of the gains that cannabis industry had made under the Trudeau administration.
The investor panic sparked a selloff that affected not just Organigram, but cannabis stocks in general. Despite the tough opposition, Trudeau won a second term and now investors are relieved as Canada embarks on expanding its cannabis industry. Last month, Canada legalized more cannabis products for recreational use. The sale of the newly legalized recreational cannabis products, such as vape pens, will kick of next month.
A drought of updates from Organigram might also explain why investors shunned the stock, leading to its big plunge to current lows. If we look at Organigram’s investor relations site and go to press release section where it publishes updates about its business activities and developments, we see that Organigram has not issued any investor update since June. That is a 5-month silence that could cause many investors to forget the stock.
Organigram Holdings Inc. (TSE:OGI) (NASDAQ:OGI) is a licensed producer of cannabis and cannabis-based products in Canada. It serves both medical and recreational cannabis markets. Organigram is the only profitable Canadian licensed cannabis producer. It made a net profit of $15.7 million in 2018.
Organigram’s silence and subsequent decline in the stock delivers a decent opportunity
If you look at the charts, you cannot miss to see the up and down pattern in the movement of OGI stock. After a bull run, Organigram tends to pull back as investors book profits before entering another breakout phase. In early October, for instance, Organigram plunged to a record low of $2.70. But the stock bounced back that by around mid-August it was trading above $3.70. That is a nearly 40% return right there in a space of about one week.
Beyond the stock movement patterns that savvy investors can take advantage to notch short-term profits in Organigram, the stock also comes across as an attractive cannabis long-term play. Organigram has positioned itself to take full advantage of the opportunities that Canada’s cannabis market offers.
Organigram prepared to hit the ground running when vape pens sales kick off in Canada
Canada’s expanded recreational cannabis market has paved the way for the sale of cannabis vaporizers or what are commonly called vape pens.
Organigram has teamed up with San Francisco-based vaporization technologies and devices firm PAX Labs to jumpstart its entry into Canada’s vape pens market. Organigram is one of the only a handful of companies that PAX Labs has selected to supply cannabis extracts for its vape pen brand called PAX Era.
Vape pens and other newly legalized recreational cannabis products could see Canada’s recreational cannabis market double to C$2.4 billion in 2020, according to analysts at Cantor Fitzgerald.
“The agreement with PAX reflects Organigram’s own strategic commitment to growth and leadership through technology-driven innovation,” Organigram said in the statement announcing the partnership.
Organigram secures financing deal that will ensure cash shortage doesn’t stand in its way
Bank of Montreal and a syndicate of other lenders have allowed Organigram to access $140 million in credit facility. The facility means that Organigram can continue running its operations and working on its projects without worry about cash shortage holding it back. As Canada’s cannabis market expands, Organigram is investing in many areas, including expanding its production facilities and building larger distribution networks to meet the demand for its products. Therefore, the credit facility will come handy for the company.
If Organigram has a way of bouncing back as the charts demonstrate, then the secret of profiting from the stock is to identify the next breakout point. Presently at one of its lowest price levels, Organigram looks poised for a powerful breakout that could see early bird investors smile all the way to the bank. Organigram has notched higher in two of the last three sessions, another sign of a comeback for investors.
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Disclosure: We have no position in OGI stock and have not been compensated for this article.
Forget APHA and ACB, Buy GTBIF and TCNNF
There are a lot of misconceptions going on when it comes to US legalization. Many investors are buying Aphria (APHA) and Aurora Cannabis (ACB) hoping to bank on what’s happening in the US. However, they are Canadian Licensed Producers and have no business in the US. Investors are buying them because they trade on the major exchanges, but that is the wrong move. The correct move is to buy the US multi-state operators like Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF).
On Election Day voters in New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana. South Dakota and Mississippi voters also approved measures to legalize medical marijuana.
There’s also the prospect of a more pot-friendly White House with President-elect Joe Biden. Vice Presidential Candidate Kamala Harris said at the debate a Biden administration would decriminalize marijuana at a federal level and expunge criminal records of people with marijuana-related offenses.
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves.
Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection.
The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96…
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…