Supreme Cannabis Company Inc (OTCMKTS: SPRWF) had an excellent start to 2019 rallying by more than 70%. However, the stock has come under pressure since February. After a steep pullback, the stock remains exposed to a critical support level a breach of which could result in further drops.
Amidst the underperformance in recent weeks, the pullback could as well be a minor correction from where the stock is likely to bounce and go on to post-new higher highs.
SPRWF Catalysts And Share Price Analysis
The confirmation that Supreme Cannabis Company has established a new genetics company is one of the development that continues to prop the stock’s market sentiments. The Company has also refined its product line with the launch of cannabis oil, products affirming underlying innovation.
The approval of an additional 60,000 square feet production capacity at the Company’s 7Acres facility is set to ramp up production capacity to 26,250kg. Supreme Cannabis has also embarked on an aggressive expansion drive targeting growth opportunities in Europe.
The current share price does not reflect the Company’s long-term prospects with respect to the underlying developments that underscore underlying growth. The stock is thus likely to bounce back once the correction loses its edge.
Immediate support, likely to prevent further downside action, is the $1.35 level. Above the $1.35 mark, Supreme Cannabis remains supported for further upside action as a bounce-back play.
Conversely, a breach of the support level could result in the stock plunging lower in continuation of the emerging downtrend.
What Does Supreme Cannabis Company Do?
Supreme Cannabis Company is a cannabis-focused company engaged in the production of medical cannabis for distribution in Canada. The Company boasts of a diversified portfolio of distinct cannabis companies as well as products and brands.
Why Supreme Cannabis Could Bounce Back?
After a recent pullback, Supreme Cannabis is likely to resume its uptrend as investor s react to a string of developments that underscore growth metrics and long-term prospects. The unveiling of Cambium Plant Sciences as the Company’s new subsidiary is a development that should continue to excite investors.
The new subsidiary is to spearhead Supreme Cannabis drive to becoming an industry leader when it comes to the agricultural revolution of cannabis genetics. With the systematic application of research technology and science, the subsidiary is to focus on coming up with premium cannabis genetics for recreational and medical wellness applications.
“Cambium will develop cultivars that benefit our in-house brands, as well as our domestic and global cultivation and manufacturing partners. Initially, Cambium is expected to benefit from 7ACRES’ established genetics, existing infrastructure and the unparalleled plant knowledge of its team,” stated CEO Navdeep Dhaliwal.
The launch of Cambium to spearhead research operations coincides with the launch of cannabis oils products as Supreme Cannabis continues to strengthen its product line. With the launch of the new products, the Company is planning to target adult-use consumers in select Canadian markets.
Supreme Cannabis annual production capacity is also set to receive a boost at a time when demand for cannabis products is on the rise. The Company’s wholly owned subsidiary 7Acres has secured a Health Canada approval for the construction of six additional flowering room that are poised to add up to 60,000 sq. Ft. of production space.
The additional flowering room will increase Supreme Cannabis annual cannabis production capacity from 17,500kg to 26,250kg. The licensing of 25 flowering rooms in future should take the production capacity to 50,000kg.
As the cannabis production capacity continues to increase, so is Supreme Cannabis expanding its footprint into new markets in pursuit of new markets for its products. The Company has already set foot in Malta, one of Europe’s commercial entry points and an exciting market for medical cannabis products
“We’re pleased to announce that we have secured a letter of intent from Malta Enterprises, taking another step forward in our global growth strategy. Using the intellectual property and expertise we’ve gained in Canada, we intend to deliver high-quality cannabis products to medical patients in multiple international markets,” said Mr. Dhaliwal.
Recent developments underscore a company positioned for robust growth with the expansion of cannabis product line as well as expansion into new markets.
Supreme Cannabis Company share price edging lower after a stellar start to the year provides an opportunity to bet on a stock with tremendous potential. The stock is thus an ideal breakout play after the recent correction lower.
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Disclosure: We have no position in SPRWF and have not been compensated for this article.
Terra Tech Corp (OTCMKTS: TRTC) A Bounce Back Play As Net Loss Narrows And Gross Margins Expand
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.
Namaste Technologies Inc (OTCMKTS: NXTTF) A Bounce Back Play On Robust Revenue
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.
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…
Cannex Capital Holdings Inc. (OTCMKTS: CNXXF) A Long-Term Play Despite Price Slump
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.
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.
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…