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Sproutly Canada Inc (OTCMKTS: SRUTF) Is A Strong Buy

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Sproutly Canada

Sproutly Canada Inc (OTCMKTS: SRUTF) is pulling lower after an excellent start to the second quarter that saw it rally by more than 100%. The stock has since pulled back and now looks set to trade sideways, in a range, having bounced off a fundamental support level.

Price Analysis

A rally to all-time highs came on the company confirming a strategic partnership with Ogilvy Canada as part of an effort of developing strong brands. In the recent past, the company has also inked a strategic partnership with Moosehead Breweries, resulting in the formation of a joint venture to launch cannabis-infused beverages.

Sproutly has also achieved significant progress on its bid to deliver a safe and consistent whole plant experience for cannabis, on securing processing license from Health Canada. The stock pulling lower in response to recent developments could as well indicate minor correction pending continuation of the emerging uptrend.

The $0.50 mark is the immediate support level supporting Sproutly uptrend that began in March. Above the critical technical level, the stock remains well supported for further upside action as a bounce-back play. Conversely, a breach of the support level would leave the stock susceptible to further drops, probably back to the $0.36 level, seen as the next support level.

SRUTF Daily Chart

A close below the $0.36 support level would bring to an end the bullish momentum consequently exposing Sproutly to further drops, probably back to 52-week lows. However, as it stands Sproutly is likely to edge higher after the recent correction.

What Does Sproutly Canada Do?

Sproutly Canada is a cannabis-focused company seeking to become a leading supplier to the cannabis beverage and edibles market. With its Toronto-based facility, the company cultivates pharmaceutical grade cannabis. It is also engaged in the distribution of cannabis products having secured license authorization from Health Canada.

Strategic Partnerships

Shares of Sproutly have pulled lower after a meteoric rise as of the end of the first quarter. The pullback could as well be because of investors taking profits after the recent spike high. The company moving to strengthen its cannabis product line is a development that continues to prop the stock’s market sentiments.

The formation of a joint venture in partnership with Moosehead Breweries opens the door for Sproutly to strengthen its cannabis product line, with the launch of a new line of cannabis-infused beverages. The two are joining forces to develop, produce and market non-alcoholic cannabis-infused beverages using naturally produced water-soluble cannabinoids.

“Moosehead is a truly iconic brand, and we are very excited to partner with a company that possesses such deep-rooted Canadian heritage and over 152 years of history in the beer industry. Partnering with a company of this caliber is a strong validation of APP Technology and Infuz20,” commented Keith Dolo, Chief Executive Officer and Director of Sproutly.

In addition to the Moosehead partnership, Sproutly has hired Ogilvy Canada as its integrated brand development firm. The award-winning creative agency is tasked with the responsibility of delivering excellent creative and impactful communications strategies to promote the launch of Sproutly brands in Canada.

Sproutly Canada is in the process of building a robust brand and partnership strategy ahead of the legalization of edibles and beverages in October.

“With award-winning creativity and a deep understanding of our consumers, Ogilvy will be a valuable partner in helping Sproutly to launch into the beverage and edibles market with a brand and strategy that uniquely delivers the rapid onset benefits of our APP proprietary technology,” said Melise Panetta, Vice President, Marketing and Sales, for Sproutly.

The company is leveraging the Aqueous Phytorecovery Process technology to come up with new products, as it is capable of producing naturally water-soluble cannabinoids. Sproutly has also secured a Health Canada license that allows it to move forward with the production of cannabis oil and other related products.

The processing license also marks an important milestone on the company’s bid to commercialize cannabis beverages and other edible products.

What Next For Sproutly Canada

While Sproutly Canada has pulled lower from this year highs, underlying fundamentals are as solid as ever and set to support further upside action. The stock is likely to resume its upside action after the recent correction lower.

The pullback presents an exciting entry position given the company’s tremendous potential in the multi-billion-dollar industry.

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

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Is Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) A Good Bet Right Now?

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Neptune Wellness Solutions

There is no doubt 2019 was a tough year for the hemp/cannabis businesses. However, there are a few hemp/cannabis stocks that still managed to make their investors proud. Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) is one of those stocks. Investors who put their bet on Neptune at a time like this saw their investment increase 130% by July of last year.

Neptune Wellness Solutions is already off to a strong start in 2020. The stock has gained more than 15% in the past week alone. Looking at how Neptune has positioned itself in the hemp/cannabis market, you cannot dispute 2020 is shaping up to be a great year for the stock. Then you notice that Neptune insiders are deeply invested in the stock. Insiders own more than 17% of all shares in the company. The company’s market cap of $280 million shows that insiders alone have sunk $48 million in the stock.

You are about to find out more reasons why Neptune Wellness Solutions looks to be a good pick right now. But first, here’s what you should know about the company we’re discussing.

About Neptune Wellness Solutions

Neptune Wellness Solutions has been around since 1998 and is headquartered in Laval, Canada. It is engaged in the extraction, formulation, and packaging of value-added cannabis products for both Canadian and global markets.

This is shaping up to be Neptune’s year for a number of…

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Is Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) A Smart Pick?

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Tetra Bio-Pharma

Investors will remember that 2019 wasn’t a great year for cannabis stocks, especially Canadian stocks. Issues from uncertainty over Canada’s national elections to shortage of cannabis retail stores in Ontario greatly weighed on Canadian cannabis stocks last year. These problems are largely out of the way and investors can now spot cannabis stocks with a promising outlook in 2020. Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) is one play poised for a big breakout in 2020 as its drug products go on sale.

Tetra Bio-Pharma is one of the most promising cannabis stocks in 2020 and investors have really warmed up to the stock. At $0.50, Tetra stock has already gained more than 60% year-to-date. But that is just the beginning and we feel there is a great story to tell here. First, however, it is important for investors to understand the company we’re discussing.

About Tetra Bio-Pharma

For investors who may have just come across Tetra Bio-Pharma for the very first time, this is a Canadian cannabis company. It is focused on developing cannabis-based drugs for a variety of conditions, including cancer.

Tetra Bio-Pharma about to begin commercializing its drug products

As a drug company, Tetra Bio-Pharma is insulated from many challenges that face conventional cannabis companies. For example, companies that make adult-use cannabis products must cope with cutthroat competition in the market. Moreover, Canadian cannabis companies have Continue Reading

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Why Investors Are Warming Up To Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF)

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Fire & Flower Holdings

The disastrous 2019 taught investors the importance of carefully screening cannabis stocks for great picks that can withstand industrywide shocks. That explains why investors are warming up to Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF) in 2020.

Fire & Flower Holdings has positioned itself to take full advantage of the recently expanded cannabis market under Cannabis 2.0. Investors are realizing that FFLWF is one pick that can make a huge difference in their cannabis portfolio. Fire & Flower Holdings has already gained more than 25% year-to-date, a testament to the strong investor interest in the stock in 2020.

About Fire & Flower Holdings

Fire & Flower Holdings is a Canadian cannabis company. It operates as a cannabis product retail chain. It operates a network of dozens of cannabis retail outlets in Canada. FFLWF currently has licenses to operate cannabis retail stores in Alberta and Saskatchewan provinces. In addition, it runs a cannabis distributor business in Saskatchewan.

Investors will no doubt remember that 2019 was a tough year for the cannabis sector, with a widespread collapse of many cannabis stocks big and small. That shows why in 2020 investors are looking for cannabis stocks that can deliver excellent returns and make them forget the pain of the past year. FFLWF has emerged as one of the favorite cannabis stock picks for investors early on in 2020. There are several reasons behind that and here are…

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