It is not a secret that cannabis industry is candidate #1 for top performer of 2018. Several market leaders’ stock prices have broken their resistance levels recently, which moves the overall index and ETFs due to their holdings. When this happens, the right selection of healthy companies is going to move up too and move up significantly. One of them is OrganiGram Holdings Inc. (OGI.V).
A largest cannabis ETF “Horizons Marijuana Life Sciences” has broken through its long-term resistance on last Monday. During the rest of the week, a price has retreated while sitting on the 50 SMA now. It is likely to test its new support before it goes up again. An important fact is that marijuana market is being entered by more and more market participants. This a beginning of something BIG!
Canopy Growth Corporation, the biggest marijuana company by market capitalization has applied to be listed on New York Stock Exchange. These are great news because this way it can be accessed by more US institutional investors. The shares of the Canopy Growth increased by 9%. Before this event, the stock actually broke out from triangle pattern and I wrote about it as a fabulous opportunity for both long-term and medium-term investors. If you have taken a LONG position, you’re already sitting on a meaningful profit.
It’s not late and there is no reason to sell. There are several reasons why to hold these stocks and buy more of them. The investing in marijuana has just begun!
OrganiGram Holdings Inc.
OrganiGram Holdings is a TSX Venture Exchange listed company producing and selling medical marijuana by phone and online. Furthermore, the company just unveiled Phase 1 branding strategy for the adult recreational market in Canada. The strategy includes the launch of The Edison Cannabis Company, ANKR Organics, and Trailer Park Buds. After the legalization, OrganiGram Holdings is prepared to feed a huge demand.
In addition, the company has yesterday received a permit to export medical cannabis to Australia – new high growing market.
Good fundamentals are crucial elements when selecting stocks in the young industry. The marijuana industry as another industry in the western world is directly affected by supply and demand and thus, let’s see who demands and how company supplies.
Demand is rising and so the number of registered clients increasing.
Sales are increasing and trending higher.
The most interesting part – cost of production is going down, more precisely, the company keeps decreasing cost per gram harvested.
The stock has recently broken its almost half year long resistance. The consolidation is over and bull market of the stock is emerging. The economic indicators such as RSI, MACD, CMF strongly support a current upward trend. As with the HMMJ, it is likely the stock will test its new support in short-term, however, with all the positive news popping around this may not be the case. One way or another, this stock is not for short-term trading. It is for long-term investors and thus, now is a time to enter the market.
OrganiGram Holdings is a mid-sized company in the cannabis industry that has a potential to become a multibillion-dollar corporation. The important is to stay disciplined and focused on the big picture.