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Why Analysts Are Bullish About Curaleaf Holdings Inc (OTCMKTS: CURLF)

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Curaleaf

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.

CURLF Daily Chart

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.

Bottom Line

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.

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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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