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Surna Stock (OTCMKTS:SRNA) A Bargain At Current Levels

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Surna stock

A second consecutive quarter of record revenue and profits and it is safe to say things are looking rosy for Surna stock. Surna stock has bounced back nicely and recouped a substantial amount of the losses on the way.

Surna Stock Price Analysis

After a wave of consideration, the upward momentum looks set to pick up some steam as investors react to improving fundamentals. Revenue growth and profitability are some of the factors that continue to affirm the company’s long-term prospects.

In addition, the company’s cash position has improved considerably in recent months. That said, the company remains well-positioned to pursue strategic initiatives that have the potential to accelerate revenue growth as well as create value for shareholders.

With the stock trading at the lower end of a tight trading range, a bounce-back could be in the offing in continuation of the emerging uptrend. Conversely, a rally followed by a close above the $0.09 level should help fuel the upward momentum setting the stage for the stock to continue powering higher.

That said Surna needs to rally and find support above the $0.10 level to be on its way to registering one-year highs. Conversely, a breach of the $0.06 level could give short sellers a reason to continue pushing the stock lower in continuation of the long-term downtrend.

In our view, Surna is on its way to powering higher in continuation of the emerging uptrend.

About Surna Stock

Surna designs, engineers and manufactures environmental control and air sanitation systems used in regulated indoor cannabis cultivation facilities across the U.S and Canada. The company provides energy and water-efficient solutions that allow growers to meet the demand for active cannabis cultivation. The company has so far played a role in the commissioning and operation of over 800 grow facilities.

Improved Operational Efficiency

Surna sentiments in the market have received a boost on the company reporting impressive financial results for its third quarter. Revenues in the quarter were up 66%, surging to another record high of $5.5 million. The increase stems from two expansion project contracts that the company signed in the second quarter with a single multi-facility.

The company also achieved back-to-back quarters of positive operating and net income. Operating income in the third quarter surged to $277,000 as net income came in at $222,000. Cash levels in the quarter increased to $2 million as the company generated $1.75 million from operating activities in the first nine months of the year.

Tony McDonald, the Company’s CEO, stated: “We are extremely pleased with our second straight quarter of record revenue and profits. We continue to focus on our two key financial metrics: revenue growth and profitability

However, gross margins in the quarter shrunk to 28.6% from 34.4% reported in the second quarter. The decline was because of the company taking advantage of larger project opportunities that included a high proportion of nonproprietary products

Strategic Plans

In a bid to accelerate growth and generate long-term value, Surna management has already identified new business verticals that should help complement the company’s climate control business. The verticals include the automation of processes for delivering nutrients and water to plants as well as the development of systems for optimizing the use of growing space.

The company is also thinking of developing cultivation management technology. To achieve the new business verticals, Surna intends to ink strategic partnerships with like-minded companies and businesses. The company is also considering the possibility of carrying out acquisition in a bid to achieve some of the verticals.

“Under the right circumstances and at the appropriate time, we believe acquisitions and related capital infusions of growth equity, combined with the proper execution of our growth plan, can accelerate our progress towards consistent cash operating profitability,” Surna in a statement.

Listing on the NASDAQ is another milestone that Surna management wants to achieve in the coming years.

Bottom Line

After a poor start to the year, Surna stock has bounced back nicely. Improved operational efficiency has seen the company post impressive financial results in recent quarters. A second consecutive quarter of record profit and revenues attests to a company firing on all angles. 

With the company having uncovered new business verticals expected to generate long term value, the stock is trading at a discount relative to its long term prospects. As it stands, Surna stock is a great pick for long-term investors.

We will be updating our subscribers as soon as we know more. For the latest updates on Surna stock, sign up below!

Disclosure: We have no position in Surna stock 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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