Medicine Man Stock (OTCMKTS:MDCL) appears to be trading at a discount relative to its tremendous potential and long term prospects. After an impressive run in 2019, the stock has pulled lower in what appears to be a consolidation phase.
Medicine Man Stock Catalysts and Price Analysis
The pullback has come hot on the heels of improving underlying fundamentals that point to solid growth metrics as well as positive long-term prospects. For starters, the company has embarked on an aggressive acquisition strategy as it seeks to strengthen and expand its footprint in the broader cannabis sector.
Likewise, improved operational efficiency has helped drive revenue growth. Similarly, the company has seen its cash balance improve significantly in recent quarters, which means the company is well-financed to pursue strategic initiatives. The strengthening of the leadership has also come into play as Medicine Man Technologies seeks to take advantage of new ideas able to accelerate underlying growth.
Amidst the development, the stock has pulled lower in recent months in line with a bearish wave that has gripped the overall industry. That said, the stock faces immediate support at the $2.40 level as part of the pullback.
Medicine Man stock needs to rise and find support above the $3.20 level should pave the way for the stock to make a run for the $4 resistance level.
About Medicine Man Stock
Medicine Man Technologies casts itself as a leading provider of cannabis consulting services nutrients and supplies. The company boasts of a client portfolio in over 20 states in the U.S and 7 countries. The signing of multiple agreements has allowed the company to become one of the largest vertically integrated seed-to-sale operators in the industry.
Strengthening Executive Leadership
Medicine Man Technologies has sought to position itself for sustainable growth by carrying out changes to its executive leadership. Conversely, the company has confirmed the appointment of Andy Williams as the vice-chair and president with a focus on growth initiatives and Bob DeGabrielle as the Chief Operating Officer. Justin Dye, on the other hand, is to take over as the executive chair and Chief Executive Officer.
While Andy Williams succeeded in scaling the business and taking Medicine Man Technologies public, the new CEO is tasked with the responsibility of spearheading the next phase of growth. With over 25 years of strategic management, operations and finance experience, Dye is tasked with the responsibility of coming up with new initiatives and opportunities across the industry.
“The combination of a world-class executive team, the great people of Medicine Man Technologies and its targeted acquisition partners create a team that is unrivaled in the industry. Our strategy to become one of the largest vertically integrated cannabis operators in North America is a big opportunity for us, and I am excited to work alongside pioneers of the industry,” said Mr. Dye.
Improving Operational Efficiency
The management appointment comes at a time when Medicine Man Technologies is experiencing high levels of operational efficiency. In the third quarter, the company posted a 14% increase in revenues that came in at $4.67 million. However, the company posted a net loss of $1.8 million compared to a net income of $4.9 million posted a year earlier.
The transformational quarter saw the company’s cash balance improve to $15 million as of September 30, 2019, compared to $529, 674 million as of the previous year. A solid balance sheet has helped the company carry out a number of acquisitions. Likewise, the company has entered into binding agreements to acquire 12 cultivation operations and 7 product manufacturing operations as well as 33 dispensaries and excellent R&D capabilities.
The operations that Medicine Man Technologies is moving to acquire have combined revenues of $170 million. Likewise, the operations should make the company one of the biggest cannabis companies in the industry
The future is looking bright for Medicine stock as it moves to strengthen its prospects and operations in the industry through acquisitions. A 14% increase in revenues in the third quarter affirms the company’s business model, which should continue generating value going forward.
Likewise, an aggressive acquisition strategy should strengthen the company’s competitive edge in the industry. While the stock has pulled lower in recent months, the pullback in our view presents an opportunity to buy the stock at a discount, given the tremendous potential for Medicine Man stock.
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Disclosure: We have no position in Medicine Man stock 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…