The cannabis industry currently is among the fast-paced industries whereby turning your back for a second you miss out on some next big merger or announcement. For that reason, there’s an immense excitement, especially from investors.
As like any industry, however, there’ll be successful cannabis stock investments as well as a fair share of those who’ll fail to cash the opportunities. One cannabis stock that’s looking to be on the winning side is the Canadian grower Tilray (NASDAQ: TLRY).
The Seattle-based cannabis company operates in the Canadian marijuana market. It makes a plethora of drug treatments for medical use. The products are mainly based on tetrahydrocannabinol (THC) and cannabinoid (CBD) compounds, both extracted from marijuana.
Tilray Price Overview
Tilray has been a bottle-rocket since its debut in July and has been in the spotlight in the past because of becoming the first-ever stock in Canada to go with the initial public offering way. However, the stock hasn’t received positive news recently but rather negative ones as a result of going down in such a short period.
The past five months have seen the stocks’ market cap slip by almost 25% while its valuation cut nearly in half from its initial high. The price alone this year has followed a downward trend to a current $43.88.
The most important thing at this moment is the fact that the stock has already started to show signs of recovery despite the struggle it has experienced this year.
What Keeps Tilray on the Move?
Few popular stocks have struggled this year, and Tilray hasn’t escaped that arm of shock, but if you think Tilray is down for the count, think again.
The fact that any stock could lose almost 85% of the value in less than a year may be crazy, but the stock could be breathing its last breathe of negative sentiments and start the journey up. It’s just last year that the stock reached $300, meaning that it has all it takes to be anyone’s number one choice.
For instance, the Q1 results showed some good news as the revenues topped the consensus views. Besides the sales volumes grew as did the metrics by almost 50% from last quarter.
Also, it has made several business developments to ensure a rapid revival. First up, the company expanded its strategic alliance with Novartis Division Sandoz which allows it to increase its global access to medical cannabis.
Tilray is also poised to benefit from the partnership it made with AB InBev, a non-alcohol THC as well as CBD beverages firm. From the agreement, each company is to invest about $50 million and hence a total of almost $100.
Moreover, to boost the company’s production capacity, it recently acquired Natura Naturals that has a massive cultivation center in Canada. Besides, with the increasing interest in CBD and hemp, the company also bought Manitoba Harvest, a hemp-food company to ensure it stays on top of the game.
Tilray has also added more than 15,000 kilograms to its High Park Gardens facility in Canada to bolster production capacity. Further, it’s building production capacity in Portugal to support the move more into the European market.
The main focus for Tilray at the moment is building branded consumer products with which Manitoba Harvest acquisition will significantly help.
A Good Buy?
Tilray could be down, but it’s not out yet. The stock deserves much credit with the number of deals it’s making, which would help the company become a winner and get back to shape sooner than many might be expecting.
The pot firm’s reliable management team also gives it an upper hand for a promising future as it’s full of experience. Going as per the last quarter results, it’s inevitable that Tilray will make a turnaround, and it more likely wouldn’t be too much late for most investors.
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Disclosure: We have no position in TLRY 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…