We have a number of signals in place now that suggest the hemp-related stocks may be poised for a defining turnaround.
First off, we have seasonal factors pointing to rising prices as outdoor growers in the northern hemisphere are fully in crop management mode and won’t be bringing any more hemp or cannabis to market for months.
Secondly, the space was washed out by the coronavirus crash even though demand has actually risen in response to the pandemic and the stay-at-home theme.
And finally, the charts are turning higher basically everywhere across the space. We see post-capitulation bottoms in place that augur extremely well for coming action. The speculative money is already torched and out of the game in these stocks, so the quick-trigger selling waves should be in the past. And the real dogs have already failed and delisted.
Here are four stocks that traders will be watching closely in the space: Cronos Group Inc (NASDAQ:CRON), HempAmericana Inc (OTCMKTS:HMPQ), Curaleaf Holdings Inc (OTCMKTS:CURLF), and Hemp Inc (OTCMKTS:HEMP).
Cronos Group Inc (NASDAQ:CRON) is threatening to break out above its key 50-day simple moving average after dealing with former audit issues. The class action gang is all over this one right now, but that’s old news.
The stock is priced for disaster, along with the space, but this company is still doing big business, with top-line growth over 70%.
Cronos Group Inc (NASDAQ:CRON) casts itself as an investment firm in the biopharmaceutical space, with a strong emphasis on medical marijuana and cannabis-related research and products. In short, the company seeks to invest in other companies, either licensed or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marijuana for Medical Purposes Regulations (MMPR).
The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment but does not need control.
Cronos Group Inc. was incorporated in January 2013 and is based in Toronto, Canada with an additional office in in Toronto, Canada.
According to company materials, “Cronos Group is a globally diversified and vertically integrated cannabis company with a presence across four continents. The Company operates two wholly-owned Canadian licensed producers regulated under Health Canada’s Access to Cannabis for Medical Purposes Regulations: Peace Naturals Project Inc., which was the first non-incumbent medical cannabis license granted by Health Canada, and Original BC Ltd., which is based in the Okanagan Valley, British Columbia. The Company has multiple international production and distribution platforms including in Germany, Poland, Israel and Australia. The Company intends to continue to rapidly expand its global footprint as it focuses on building an international iconic brand portfolio and develop disruptive intellectual property. Cronos Group is committed to building industry leading companies that transform the perception of cannabis and responsibly elevate the consumer experience.”
Shares are acting well over the past five days, with the stock up about 4% in that timeframe.
Cronos Group Inc (NASDAQ:CRON) managed to rope in revenues totaling $9.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 72.1%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2B against $431.7M).
HempAmericana Inc (OTCMKTS:HMPQ) is on the move in terms of expanding investment in a coherent plan to drive sales growth. The company appears to be at a crossroads and turning in the right direction.
The key here is the move toward partnering with Alibaba (BABA), picking up a massive 400-site affiliate marketing network, going live with its ecommerce site, equipped to take payments from all major processors, and investing in new customer service and marketing tools.
The latest such move is its appearance on Groupon as a promotional product offering.
HempAmericana Inc (OTCMKTS:HMPQ) is an emerging leader in the CBD products market. The Company owns and operates a high-capacity, state-of-the-art CBD extraction and processing facility located in Augusta, Maine. This facility is armed with a supersized supercritical CO2 extraction system, centrifugal partition chromatography refinement technology, and a mechanized fully-automated CBD bottling system.
“As part of our aggressive pursuit of brand and product sales growth, we are launching a promotional campaign designed to create further market penetration through the largest digital coupon platform on the planet,” commented Salvador Rosillo, CEO of HempAmericana.
“Millions of people search for deals on Groupon, providing us with a resource for generating immediate sales growth and relationships with new customers that hold the potential for repeat business for years to come.”
The stock appears poised for upside on a technical and fundamental basis, and the space is starting to feature a turnaround theme which should help drive more speculative capital into names like this.
Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States.
The Company is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf, Inc. has a presence in 12 states.
Curaleaf, Inc. operates 30 dispensaries, 12 cultivation sites and 9 processing sites with a focus on highly populated, limited license states, including Florida, Massachusetts, New Jersey and New York. Curaleaf, Inc. leverages its extensive research and development capabilities to distribute cannabis products in multiple formats with the highest standard for safety, effectiveness, consistent quality and customer care. Curaleaf is committed to being the industry’s leading resource in education and advancement through research and advocacy.
Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.
It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.
The company also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations. As of November 01, 2018, it operated a network of 29 dispensaries. The company was founded in 2010 and is headquartered in Wakefield, Massachusetts.
The context is a bit of a bid, with shares acting well over the past five days, up about 3% in that timeframe.
Curaleaf Holdings Inc
(OTCMKTS:CURLF) managed to rope in revenues totaling $99.6M in overall sales
during the company’s most recently reported quarterly financial data — a figure
that represents a rate of top line growth of 136%, as compared to year-ago data
in comparable terms. In addition, the company is battling some balance sheet
hurdles, with cash levels struggling to keep up with current liabilities
($54.9M against $137.8M, respectively).
Hemp Inc (OTCMKTS:HEMP) produces products made from industrial hemp. The company also offers products and services to the medical and recreational marijuana industries.
It also develops and operates a website providing entertainment and news related to medical marijuana industry. The company was formerly known as Marijuana, Inc. and changed its name to Hemp, Inc. in June 2012. Hemp Inc. was founded in 2008 and is headquartered in Las Vegas, Nevada.
According to its own communications materials, the company’s long-term goal is to be the leader in the industrial hemp industry in America, which is now estimated to be over $500 Million. Hemp, Inc.’s mission is to provide green solutions that help make the world a better place to live.
The company apparently supports products that are eco-friendly, organic, healthy, and solutions that replace many petroleum-based products. In addition, Hemp, Inc.’s wholly owned subsidiary, Industrial Hemp Manufacturing, LLC, purchased the largest decortication plant in North America, which is located in Spring Hope, North Carolina. The plant is housed in a 70,000 square foot warehouse on 9 acres and is scheduled for completion in the last quarter of 2015.
The company will start producing fiber, loss circulation materials (LCM) and absorbents from kenaf and later from hemp. Initially, Hemp, Inc. will produce a product for drilling rigs called “lost circulation material” (LCM), which is used for maintaining the seals when drilling for water, oil, gas, and any other liquid or gas.
Eventually, the company plans to also produce fiber materials for the paper and fabric industries, and other industries that utilize materials from hemp to make products such as plastics, building materials, health and beauty related products and more.
Hemp, Inc. plans to purchase, acquire and/or joint venture with complimentary companies across various sectors of the hemp industry in an effort to build a portfolio of synergistic businesses in the industrial hemp industry. Hemp Inc (OTCMKTS:HEMP) managed to rope in revenues totaling $825K in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 662.9%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2.6M against $1.1M).