Pot Stock Outperformance and How to Play It (OTC US: GRWG) (OTC US: MEDH) (NASDAQ: TLRY)

February 9, 2021 8:00 AM EST

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

The monster combination of Aphria and Tilray is a loadstone that has sparked a faith-based move by investors into the cannabis space over recent weeks. That has been helped by continued aggressive speculator involvement in the equities market more generally.

The legal backdrop also received a major boost by the Democrat takeover in Washington DC, suggesting that forward-year estimates for most of the stocks in the cannabis space may hit any number of positive catalysts forcing estimates higher in 2021.

With that in mind, we take a look at some of the most interesting names in the space, including: GrowGeneration Corp (OTC US: GRWG), MedX Holdings Inc. (OTC US: MEDH), and Tilray Inc. (NASDAQ: TLRY).

GrowGeneration Corp (OTC US: GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. The company has been growing rapidly through a series of key strategic moves.

GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

GrowGeneration Corp (OTC US: GRWG) just announced its acquisition of Grow Depot, a two-store chain in Auburn and Augusta, Maine. The acquisition brings the total number of GrowGen hydroponic garden centers in Maine to five, with locations in Auburn, Augusta, Biddeford, Brewer, and York.

Its a very exciting time in Maines adult-use market, and were pleased to expand our footprint in the state through our acquisition of Grow Depot, which has proudly served the Central Maine area for nearly a decade, said Darren Lampert, GrowGenerations CEO. With our expanded footprint, the Maine market is expected to generate 2021 annual revenues of over $20 million for GrowGen.

And the stock has been acting well over recent days, up something like 36% in that time. Shares of the stock have powered higher over the past month, rallying roughly 39% in that time on strong overall action.

GrowGeneration Corp (OTC US: GRWG) managed to rope in revenues totaling $55M in overall sales during the companys most recently reported quarterly financial data a figure that represents a rate of top line growth of 152.6%, 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 ($55.3M against $20.9M).

MedX Holdings Inc. (OTC US: MEDH) is a more speculative name in this basket of stocks, but may ultimately provide bigger upside potential because it hasn’t already taken on a crowd of trading interest. The company recently issued a corporate update related to an interesting legislative session in Texas earlier this month. The company is a recent pivot into the cannabis space and may deserve a close look given its strong outlook and the promising context offered by the cannabis space as momentum drives new capital toward this growth theme.

MEDH is based in Texas, so the state’s shifting legislative context has had an important impact on the company’s outlook. According to its recent update, there are currently 16 state-level jurisdictions that permit marijuana for adult recreational use and 36 states that allow it for medical purposes. Ahead of the January 2021 legislative session, Texas lawmakers have pre-filed several bills that would expand the state’s medicinal cannabis program and add it to the list of states legalizing adult-use.

MedX Holdings, Inc. (OTC US: MEDH) also notes that it “continues to prepare for these impending legislative changes, finalizing agreements and advancing relationships that will support its growth-by-acquisition strategy and vertical integration.”

More to the point: the company is anticipating that full legalization in Texas is “inevitable” and its franchise development team is “preparing an aggressive growth campaign to re-introduce cannabis to an expanded marketplace”. Management projects that the convergence of coffee and cannabis products will be an effective way to reach consumers previously hesitant to cannabis consumption – which is no doubt the big point.

“We hope to complete our plans to merge and acquire internal and external brands and entities in Q2 and throughout the remainder of 2021,” stated MEDH CEO Hans Enriquez. “We look forward to a favorable outcome of the legislative session and expect expansion to the hemp and medical program in Texas. We are excited to execute our operational strategies in 2021 and prepare for the next phase of growth.”

MedX Holdings Inc. (OTC US: MEDH) just regained OTC Markets access, got its last three periods of quarterly filings caught up, and achieved Pink Current status. That now sets up a refresh where MEDH is ready to begin executing its operational strategy for 2021. Given the dramatic strength in the group, that shift stands to potentially pay off for existing stakeholders, especially given its outlook on the Texas legislative context and the steps already underway to capitalize.

Tilray Inc. (NASDAQ: TLRY) offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. The company has also been the subject of the recent megamerger in the pot space, combining with Aphria (APHA).

One of Tilray’s key subsidiaries is High Park, which was launched to produce and distribute world-class cannabis brands and products for the Canadian market. Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park has secured the exclusive rights to produce and distribute a broad-based portfolio of cannabis brands and products in Canada, subject to applicable laws and regulations.

Tilray Inc. (NASDAQ: TLRY) most recently announced it has agreed with Worldpharma Biotech (Worldpharma), through its wholly-owned subsidiary Tilray Portugal Unipessoal Lda., to export Good Manufacturing Processes certified medical cannabis from Portugal to Spain. The shipment marks the first medical cannabis import into Spain by Worldpharma and the 17th country to receive Tilray medical cannabis worldwide.

Brendan Kennedy, Tilray’s Chief Executive Officer, said, We’re incredibly honored to be the first cannabis company to be approved and to ship medical cannabis into Spain. As we continue to work with regulators around the world, we are grateful to partner with the AEMPS and established pharmaceutical leaders such as Worldpharma Biotech on the distribution of Tilray medical cannabis.

If youre long this stock, then youre liking how the stock has responded to the announcement. TLRY shares have been moving higher over the past week overall, pushing about 58% to the upside on above average trading volume.

Tilray Inc. (NASDAQ: TLRY) pulled in sales of $51.4M in its last reported quarterly financials, representing top line growth of 0.6%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($155.2M against $133.5M).

DISCLAIMER:  EDM Media LLC (EDM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels.  EDM is NOT affiliated in any manner with any company mentioned herein.  EDM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.  EDM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities.  The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material.  All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks.  All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release.  EDM is not liable for any investment decisions by its readers or subscribers.  Investors are cautioned that they may lose all or a portion of their investment when investing in stocks.  For current services performed EDM has been compensated six thousand two hundred fifty dollars for news coverage of the current press releases issued by Medx Holdings Inc. by a third party

EDM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and EDM undertakes no obligation to update such statements.

Media Contact:

EDM Media LLC

Email: IR@EDM.Media

Office: 800-301-7883

EDM.Media



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

OTC PR Wire, Press Releases

Related Entities

Definitive Agreement