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.
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…