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.
A rally followed by a close above the $0.80 mark should reaffirm Terra Tech breakout credentials from current lows. The stock needs to rise and find support above the $0.80 mark to have a chance of rallying back to this year highs.
What Does Terra Tech Corp Do
Terra Tech is a vertically integrated cannabis-focused company that operates in three segments; Herbs and produce products, Cannabis dispensary & cultivation and real estate and construction. The company operates medical marijuana retail and adult use dispensaries under the Blum brand.
Delivery Services Launch
Terra Tech tanking to old levels does paint an accurate picture of what lies ahead in view of recent developments. The pursuit of opportunities for growth all in the effort of growing shareholder value is heating up as the Company continues to make strategic moves.
The launch of a legal cannabis delivery service sets the stage for Terra Tech to be a key player in the burgeoning California cannabis marketplace. Through the Blum Ana dispensary, the firm is to become a major supplier of medical and adult use cannabis as it continues to diversify its streams of revenues.
The new delivery system should allow Terra Tech to expand distribution of best-in-class cannabis products and in the process, generate significant revenues. The Company has already purchased multiple delivery vans that it is to use for the delivery business.
Margin Expansion Narrowing net Loss
The unveiling of the delivery system comes on the heels of Terra Tech seeing its first-quarter revenues take a hit to $7.4 million, compared to $8.6 million generated in the first quarter of last year. The decline was because of an increase in the number of taxes that the state of California placed on cannabis sales.
Gross margin, on the other hand, expanded to 54.4% from 36.2% a year earlier. Margin expansion underscores operational improvements across cannabis segment, herbs, and product segment. Net loss in the quarter narrowed to -$5.1 million or $0.05 a share, compared to a loss of -$12.2 million reported a year earlier.
Blum Desert Inn Sale
Buoyed by Q1 performance, Terra Tech has embarked on a restructuring drive geared towards building value for shareholders. The Company has since agreed to the sale of its Desert Inn Road retail dispensary for $10 million. The sale is part of a restructuring strategy that should allow the company to leverage its balance sheet to fuel growth.
“We plan to redeploy the additional capital generated by this sale toward more productive assets in California. These additional funds make us well positioned to build on our strong momentum through increased investments in infrastructure and sales and marketing,” explained CEO Derek Peterson.
Terra Tech is in the best shape it can be when it comes to operational efficiency. Narrowing net loss and widening gross margin underscores the Company’s growth strategy in the burgeoning cannabis sector. The sale of Blum Desert Inn is another development that should strengthen the Company’s balance sheet ideal for pursuing growth initiatives.
The stock taking a hit presents an opportunity to buy the stock at a discount given the Company’s tremendous long-term potential.
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Disclosure: We have no position in TRTC 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…