The indecisive nature of the pot stocks has made investors accustom to the sector’s dramatic shifts. The legal cannabis industry is emerging as a growth business. More companies become public and others have ramped up their mergers and acquisitions in North America.
Cannabis companies that sell medical marijuana and recreational pot, Dispensary data analytics, upcoming marijuana IPOs, marijuana stocks to buy and sell. These have been increasingly common phrases as investors’ curiosity continues to rise. In fact, mergers with small businesses may be seen as part of a strategy of cannabis companies in order to outshine competitors.
A Bullish Or Bearish Case For This Pot Stock?
After a red-hot start to the year, marijuana stocks tumbled in the third quarter of 2019. Top names like Aurora Cannabis, Canopy Growth, and Tilray all lost a significant market share. Is Aleafia Health (TSX:ALEF) (OTCQX:ALEAF) falling into the same trend?
Aleafia Health Inc which is a vertically integrated cannabis health and wellness company owns three cannabis product and cultivation facilities. It produces a diverse portfolio of commercially high-margin derivative products including oils, capsules, and sprays.
The company operates a national network of medical cannabis clinics and has seen over 60,000 patients to date. Aleafia became one of the hottest pot stocks in 2018 when the stock soared to over CA$4 per share at its peak. But now that the stock is hovering around $1 per share, it seems that the market has finally returned to focus on the fundamentals of this business.
Marijuana Stock Metrics
The quarterly reports of the company highlighted strong growth. Management expressed that by the next quarter the company could be in a position to post a profit for the first time. The growth in revenue was significant because of two reasons – an upswing in the recurring revenue from medical marijuana both at home and abroad in Australia.
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Secondly the company’s acquisition of Emblem gave it access to a number of countries it didn’t have prior. Supporting this was the increase in the production capacity of the company. It quadrupled the size of its Port Perry Outdoor Grow Facility to 1.1 million square feet of cultivation space.
Amidst these developments, the company has managed to place itself among the top 10 marijuana producers in the country. But as other pot stocks continue to tumble, what might the future hold for Aleafia?