Why These 3 Marijuana Stocks Are Poised For A Big Week

0
157
Photo Credit: WTVR

A short week of trading saw marijuana stocks roll over last week despite positive news from around the industry. Volatility on the broader markets combined with an ongoing pot stock market correction has left the industry in pure panic mode, with seasoned investors worn down by the FOMO crowd.

Still, some bright spots do exist, and individual cannabis stocks have the potential to either go on big runs this week or set investors up for long-term future growth if they buy-in now. Here’s why these three marijuana stocks are poised for a big week:

The Hydropothecary Corporation

Licensed Producer and marijuana stock favorite The Hydropothecary Corporation saw sales of medical cannabis jump nine percent from the first quarter of 2018 and a whopping 45 percent compared to the second quarter of 2017, as reported in their recent second quarter financial report. Moreover, this perennial pot stock pick held ranks with the cannabis industry’s leading players, signing a letter of intent to supply 20,000 kg of cannabis to the Société des alcools du Québec supply of 20,000 kg of cannabis in the first year following legalization in Canada. Stellar second quarter financials make Hydropothecary one of the top cannabis stocks poised for a big week.

Experts are calling Hydropothecary undervalued right now, with Russell Stanley, an analyst at Echelon Wealth Partners, recently labeling them a “Speculative Buy” with a target price of $5.50 before the year is out. Lower than expected revenues, attributed to lower than forecasted volumes according to Stanley, are outweighed by the company’s expansion plans which are still on schedule.

With hopes of expanding to 1.3 million square feet and producing 108,000 kg of dried cannabis per year, Hydropothecary looks to be one of the more significant producers in Canada in the near term. Savvy weed stock investors would be smart to take a second look at this company early this week before word begins to spread.

Maricann Group Inc.

Earlier this month beleaguered marijuana stock Maricann Group Inc. attempted to retract some statements from CEO Ben Ward following an on-the-sleeve interview he gave discussing the companies recently botched $70 million financing. The deal, according to Ward, was killed due to a bad actor, an underwriter working to destroy Maricann’s value.

“Therefore, none of the statements contained in the Interview should be relied upon by investors,” said Maricann in a statement.

Weed stock investors looking past the boardroom drama will find a company primed to move the market this week. The company announced that they received an occupancy permit for Phase One of its new grow facility in Ontario, meaning they are now ready to begin cultivation once approved by Health Canada. Moving ahead of schedule, the first phase of their project hopes to increase growth capacity to 25,000 kg of dry cannabis flower per year.

Moreover, long-term Maricann is a pot stock with potential. “We believe Maricann presents a combination of low-cost production, true global diversification, and attractive valuation,” wrote an analyst at Canaccord Genuity in January when labeling this marijuana stock a “Speculative Buy” and upping its target price to $4.50. Hence the reason Maricann looks poised to have a breakout week.

On the other side of the cannabis stock market, hot in the world of CBD oils is CV Sciences, Inc. who announced last week fourth quarter financial results amounting to an increase of 126 percent compared to the same period the previous year. Profits were up 187 percent, and sales were up 87 percent, making CV Sciences one of the go-to weed stock picks of the week.

“We ended 2017 with tremendous momentum by hitting record metrics for Q4 and an overall impressive and record year. Our operating performance further validates our ability to grow profitably and generate cash flow,” remarked Joseph Dowling, CFO of CV Sciences. “In every aspect, we set new financial performance records and laid the groundwork for continued profitable growth.”

Earlier this month the company paid two months worth of installment obligations under its March 1, 2017, Convertible Promissory Note, proving the company is well-positioned to take care of their obligations and watch out for stockholders. In the high-margin extracts market, CV Sciences is a marijuana stock to not only watch but one of which to grab a piece as well.

LEAVE A REPLY