Curaleaf Holdings Inc (OTCMKTS: CURLF) stock price continues to grow sharply as investors react to a string of strategic investments that position the company for robust growth. The company embarking on an aggressive acquisition drive has continued to excite investors, a development that has seen the share price nearly double in value.
Curleaf Price Analysis
In March, the company announced plans to acquire vertically integrated company Acres for $25 million in cash and $45 million in Curleaf stock. In the recent past, the company has confirmed the acquisition of EC Investments Partners LLC as it moves to cement its prospects in California’s burgeoning cannabis market.
A deal with drugstore chain CVS Health Corp, for the sale of the company’s line of CBD products, is another development that has continued to shore the stock’s sentiments fuelling the recent spike in share price.
In the wake of recent developments, the stock has attracted favorable ratings from investment firms. Three analysts have so far recommended a buy rating on the stock with an average, share price target of CA$14.
Just as was the case in the first quarter, Curleaf has continued to edge higher after pullbacks from higher highs. In the recent past, it has pulled down from the $11.20 level, waiting to see if it will embark on another leg higher.
As the $11.20 mark is the immediate resistance level standing in the way of further upside action, the $8.0 level appears to be the immediate support level capping further downside action. Above the $8.0 match, the stock remains well supported for further upside action.
A breach of the $8.0 support level would leave the stock susceptible to further drops, probably back to the $6.40 level.
What Does Curleaf Do?
Curleaf is an integrated medical and wellness cannabis operator. The company through its subsidiaries cultivates processes, markets and dispenses an array of cannabis products. The company also offers consulting services to licensed cannabis producers on matters cultivation, extraction, and production.
Why is Curleaf Surging
Shares of Curleaf registering impressive gains comes on the heels of the company embarking on an aggressive acquisition drive in pursuit of growth in the cannabis sector. The acquisition of Acres is poised to provide Curleaf with 42,000 square feet of functioning climate-controlled greenhouses, in addition to 227,000 square feet of outdoor cultivation in Armargosa Valley.
Acres also joins Curleaf with a production and extraction lab complemented by an immersive cannabis dispensary in Las Vegas.
“The acquisition of Acres is a major step in expanding our vertical platform in Nevada. Acres operates a flagship dispensary in the heart of Las Vegas, complementing our existing assets in the state extremely well, and importantly, we can control the consistency, quality and production cost of our own cannabis products,” Curaleaf CEO Joseph Lusardi said in a statement.
Curleaf has also achieved a significant milestone on its push for market share in the highly attractive California Cannabis market. The acquisition of EC Investment Partners adds yet another vertically integrated operator that should enhance the company’s push for market share across the state.
With the acquisition of Eureka, Curleaf cements its position as one of the holders of the largest footprint of single-branded retail stores across the U.S. The retail footprint is likely to continue growing as the company continues to explore opportunities for opening additional locations.
Curleaf has also strengthened its presence in Florida with the opening of the 24th dispensary in the state. This brings to 44 the total number of dispensaries that the company has across the U.S and still growing.
In response of the expanding retail footprint, Beacon Securities analysts Russell Stanley has initiated coverage of the stock with a ‘buy’ rating. A balance sheet with approximately $80 million in available liquidity is another attribute that makes Curleaf stand out according to the analyst.
“We expect CURA to be one of the true winners in the US cannabis market, given its broad retail footprint, key state focus, emphasis on branding at both the retail and product levels, vertical integration, experienced management team, and balance sheet strength,” says Stanley.
Canaccord Genuity has also initiated coverage of the stock with a buy rating.
Curleaf is an exciting cannabis play given the investment it has made in pursuit of market share in some of the biggest cannabis marketplaces. The company has also shown its readiness to spend big on acquisitions all in the effort of strengthening its prospects in the sector.
As investors react to a flurry of positive developments and improving underlying fundamentals, the stock is likely to continue trending higher.
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Disclosure: We have no position in CURLF 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…