Terra Tech Stock (OTCMKTS:TRTC) has taken a big hit in recent months. The stock is off almost 90% from its year-to-date peak. At $0.19, TRTC currently trades at its record lows.
However, TRTC has started showing signs of a powerful recovery from its current lows and you would not want to miss the flight. The stock has started gaining ground. It closed the last session up 11% and on big volume as well, indicating a positive change in investor perception of the stock. From here, TRTC looks primed for a powerful comeback.
History repeats itself
Terra Tech stock has a history of bouncing back. In November and December of 2015, TRTC was at one of its lowest price levels. But the stock sharply reversed course shortly after and by April of 2016 the stock had delivered a return of more than 457% to investors who gave it the benefit of doubt at its lows three months earlier.
Terra Tech was again at its lows in late October of 2017. But sharply changed course soon after and by December the stock had delivered a solid return of nearly 140% in a space of a little over one month to investors who took advantage of its low price in October.
Again in December of 2018, TRTC was at one of its lowest price levels. But the stock embarked on a recovery path soon after and by March investors who took advantage of its low price a few months earlier had seen their investments grow by 160%.
About Terra Tech Stock
Terra Tech is an American cannabis company. It operates several brands that serve both medical and adult-use cannabis markets. Its products are sold at big retailers such as Walmart and Kroger. The company stands to gain big from the legalization of cannabis at the federal level.
A history of bouncing back from its lows is only one reason Terra Tech stock looks attractive at the current price. But there are even more reasons to love TRTC for the long-term. Here are a few of the reasons to be bullish on TRTC.
- America takes significant steps to federal marijuana legalization
On November 20, the US House Judiciary Committee passed a landmark bill that seeks legalize marijuana at the federal level. The passing of the bill reflects the growing support for pot legalization in America. On November 14, Pew Research Center published a study showing that two-thirds of Americans think the time has come for the country to follow Canada’s lead and legalize marijuana at the federal level.
In addition to the House, the Senate also is looking at legislation on the legalization of marijuana at the federal level. There are also individual efforts to make that happen. For example, Democratic presidential candidate Bernie Sanders last month promised to use executive powers to federally legalize cannabis in his first 100 days in the White House if he wins next year’s presidential election.
More than a dozen states have already legalized marijuana in some ways. But federal legalization of marijuana should significantly expand the domestic market for cannabis companies like TRTC.
- Terra Tech continues to robust revenue growth as profit margin expands
Terra Tech released its third-quarter financial results on November 12. It reported revenue growth of 131% year-over-year to $7.6 million. The company’s gross profit margin expanded to 50.6% from 33.2% in a similar period last year. TRTC reported revenue and gross profit margin improvements in the second quarter as well.
“As we look toward 2020, building shareholder value remains our primary goal and we are committed to adapting to the changing market in order to maximize our revenue growth,” commented Derek Peterson, CEO of Terra Tech.
- Terra Tech plans to return $20 million to shareholders through stock repurchases
Terra Tech plans to send millions of dollars back into the pockets of its shareholders. In September, the company announced a $20 million share repurchase program. In addition to putting money back in the pockets of shareholders, the stock repurchase program is also symbolic. It shows the leadership of Terra Tech thinks the market has mispriced the stock. Here’s what Terra Tech CEO said about the stock repurchase program:
“We believe that Terra Tech’s current market value does not reflect the underlying value of its business and future prospects and that implementing a share buyback program is the best way we can return value to shareholders.”
TRTC is undertaking restructuring measures to improve profitability and this has involved divesting assets that aren’t core to its long-term goal. For example, the company in August sold its Blum brand retail facility in Reno, Nevada. It sold the retail facility for $15 million. TRTC expects to unlock $36 million in cash from the sale of assets.
- Terra Tech in bid to lead in CBD market
Terra Tech will merge some of its operations with OneQor Pharmaceutical in a merger transaction that will make it a leader in the lucrative CBD (cannabidiol) products market. The global CBD products market was worth $1.5 billion in 2018 and is expected to grow to $17.3 billion by 2026.
While Terra Tech stock has taken a significant hit in recent months amid a broad selloff in cannabis stocks, you cannot dispute that the company has positioned itself for a bright future. At current levels, Terra Tech stock looks primed for a big move.
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Disclosure: We have no position in Terra Tech stock 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…