Sproutly Canada, Inc. (CSE:SPR) (OTCQB:SRUTF) has begun burning short-sellers and that is a nice thing. Sproutly has notched four positive closings in the last seven sessions, and the stock is now reversing its months-long downtrend. Short-sellers must be panicking because Sproutly isn’t going further down as they hoped for.
As short-sellers scramble to cover their positions, they will create more demand for Sproutly stock and that is sure to generate uplift force for the stock. But that is just one source of a boost that will lift Sproutly. Below we discuss more reasons Sproutly may be a good buy now.
As it bounces back, Sproutly has found immediate support at $0.25. A close above this support should put more pressure on short-sellers to move quickly to cover their position before they lose everything. That should drive the stock higher. However, a close below the support could leave Sproutly susceptible to more short-sellers attack, which could pull the stock even lower.
Sproutly’s immediate resistance now stands at $0.28. Breaching this resistance should be a clear confirmation that demand for the stock is starting to overwhelm supply.
What does Sproutly Canada do?
Sproutly bills itself as a supplier to the cannabis beverage and edibles market. It aims to be the leader in this space. Sproutly operates a facility in Toronto where it cultivates pharmaceutical-grade cannabis. Moreover, Sproutly is engaged in the distribution of cannabis products, having secured license authorization from Health Canada.
Sproutly cleared to begin sale of its dried cannabis flower products. Sproutly marked the first anniversary of recreational marijuana legalization in Canada on a high note. On the eve of the anniversary date, Sproutly received clearance from Health Canada to bring its dried cannabis flower products to market. Therefore, Sproutly intends to begin selling dried cannabis flower products in Canada under the CALIBER brand. Sproutly will sell its CALIBER products through its wholly-owned subsidiary called Toronto Herbal Remedies Inc.
“We are thrilled to receive our Flower Sales License from Health Canada. This is a huge milestone in our company’s history, as it allows us to bring to market our dried flower products into the hands of recreational consumers throughout the country,” commented Keith Dolo, CEO of Sproutly.
Sproutly on track to bring cannabis drinks to Canadian consumers following market expansion. Canada recently expanded its cannabis market with the legalization of more cannabis-based products. Sproutly has prepared to take full advantage of the expanded cannabis market in Canada. The company teamed up with an affiliate of Moosehead Breweries to form a joint venture that will make and sell cannabis-infused beverages.
Early this month, Sproutly provided updates on its cannabis beverages joint venture, generally saying the joint venture is making progress in its efforts to bring its cannabis drinks to market as soon as possible. The sale of newly legalized cannabis products in Canada will begin in mid-December. Through the joint venture, Sproutly says it will sell premium cannabis drinks and will initially target the casual consumer market. The joint venture will tap into Moosehead’s branding, marketing and distribution network to ensure that it builds a successful cannabis beverage business.
The past several months have generally been rough for cannabis companies, with almost every cannabis stock crashing. The cannabis industry remained depressed for months due to a number of factors. Among them was uncertainty over what Canada’s national election would deliver. Canada’s PM Justin Trudeau was seeking re-election and he faced strong opposition from a conservative candidate.
Cannabis businesses in Canada feared that a victory for the conservatives could see some regulatory gains for the cannabis industry rolled back. If a conservative government didn’t roll back cannabis legalization, some feared it could be reluctant to make regulatory changes to promote the growth of the industry. Trudeau won the hotly contested election and that eliminated a major worry for cannabis businesses and investors in Canada. Many cannabis stocks that had been declining have reversed course since Trudeau won the re-election and Sproutly is one of the eye-catching risers.
Sproutly looks adequately prepared to seize on the expanded cannabis market opportunity in Canada. Since Sproutly is just starting to climb and the future looks bright, it looks like a good buy now. The stock is currently trading at a discount and has the potential to climb to greater highs.
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Disclosure: We have no position in SRUTF and have not been compensated for this article.
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…
Is Cronos Stock (TSE:CRON)(NASDAQ:CRON) A Buy?
Cronos Stock (TSE:CRON)(NASDAQ:CRON) stock fell 9.22% on January 24, marking its steepest decline so far in 2020. The stock plunge followed an important disclosure that you would only expect from a company that is trying to be straight and transparent with investors. Here’s what happened.
On January 22, after market close, Cronos made a regulatory filing detailing changes in its executive team. In that SEC filing, Cronos revealed that David Hsu and William Hilson have stepped down as its chief operating officer and chief commercial officer, respectively. Unfortunately, some investors read bad news in the executive exits and sold their shares in Cronos.
But a careful reading of the filing doesn’t seem to raise any red flags. Therefore, the big stock plunged points to investors panicking to the degree of responding to a mosquito bite with a missile.
There is no doubt that 2019 was a difficult year for cannabis stocks and Cronos Stock is no exception. But before the uncalled for reaction to Cronos’s regulatory filing, we had been at a point where sellers were starting to give way to buyers in Cronos stock. The stock has gained about 8.0% in the past one month. It had gained more than 13% year-to-date before the January 24 big selloff.
About Cronos Stock
Cronos Stock is a Canada-based global cannabis company. Cronos operates through subsidiaries and…