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Time To Bet On Medicine Man Stock (OTCMKTS:MDCL)

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Medicine Man stock

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

Bottom Line

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.

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

Disclosure: We have no position in Medicine Man 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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