|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.2930 - 0.3239|
|52 Week Range||0.2900 - 3.0490|
|Beta (3Y Monthly)||3.01|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
At one point, Namaste Technologies (NXTTF) offered the promises of an online cannabis platform to serve the massive industry. Due to internal management issues and a market that hasn’t shifted online or away from illegal sources, the stock doesn’t offer investors any reason to play here. Weak FQ2 For FQ2 ended May 31, Namaste Tech actually managed to report a revenue decline from last year. The company only generated C$4.0 million in revenues, down from C$4.1 million last FQ2. Revenues peaked back in the February 2018 quarter at C$5.6 million despite a cannabis market that has grown substantially in the last year The company has reportedly updated the online platform and added equity positions in a delivery service along with a company focused on edibles. Neither move is enough of a catalyst to become interested in a money losing operation with an interim CEO. The main revenue drivers are Namaste Vapes and Australian Vaporizers that are in decline due to business shifts. The highly promoted CannMart and Namaste MD platforms combined to only generate quarterly revenues of C$0.23 million. For the quarter, gross margins remained flat at only 21% and the losses continued to mount. Namaste Tech reported a substantial C$8.6 million loss, or more than double the revenue total. Adjusted EBITDA was equally weak at a C$6.1 million loss and nearly doubled the loss from last year as the company spent far more cash on SG&A. Namaste Tech spent C$9.8 million on those expenses in the quarter and over C$8.7 million when excluding share-based compensation that doesn’t have a cash cost. The path to profitability seems highly questionable with far-flung operations around the globe in countries like Australia, U.K., Canada, Germany and others besides the U.S. Lack Of Leadership For a company in the position of Namaste Tech, a strong management team is needed to complete a turnaround. The company currently has an interim CEO after a nasty split earlier this year with the CEO. A new CEO might need to restructure their global operations in order for the small company to focus on the domestic online CannMart platform. The stock would likely struggle in such a scenario until the business returns to growth. The one positive is that Namaste Tech has a cash balance of C$55.9 million and a market cap of only $133 million with 322 million shares outstanding. The company burned $C22 million in the last six months of operating so the impressive cash balance will disappear quickly without a substantial cut in operating losses. Takeaway The key investor takeaway is that Namaste Tech still has more questions about the future of the company than solutions. The business promoted the most by the company is almost nonexistent and the wide global operations aren’t justified by the very weak revenue totals and high expenses. Investors should look elsewhere to find cannabis stocks with strong revenue growth and reasonable paths to profitability. Once the company hires a full-time CEO that completes a restructuring, the stock might be worth another look. Until then, investors should watch from the sidelines. See NXTTF's price targets and analyst ratings on TipRanks Disclosure: No position.
June 2019 might hold some surprises for cannabis stocks. With the recent market downtrend, there are many great cannabis stocks potentially selling at a discount. It's become evident that cannabis is now consolidating and potentially setting up for the next wave of volatility. Whether that wave proves to be bullish or not is yet to be determined. For June 2019, there are a few stocks worth watching.Here is a short list of stocks to look out for June: Charlotte's Web Holdings (CWBHF)Charlotte’s Web, one of the leaders in hemp CBD extract products, is a new listing with incredible potential. It’s business model focuses mostly on hemp CBD products. Non-intoxicating and highly effective at improving health among many other uses, hemp is revolutionizing many industries. Charlotte’s Web is one of those companies leading the hemp revolution with CBD pet products, CBD capsules and extracts, and a wide range of other products. Although not considered technically ‘cannabis’, hemp has become an incredibly powerful movement in American agriculture.Hemp stocks in general are an interesting play. They offer a great alternative to purely cannabis stocks and give opportunity for investors in America to get into the cannabis market in some form. Hemp provides incredible value in the form of textiles, CBD, protein products, general nutrition (hemp seeds) and more. Charlotte’s Web is one of the companies leading the hemp revolution. So look out!In late April, Benchmark analyst Mike Hickey initiated coverage on Charlotte's Web's stock, with a Buy rating and a $25 price target, which is nearly 100% upside from current trading level.Hickey opined, "Our positive view on CWEB is based on the Company’s exposure to meaningful demand drivers that include: 1) Early leadership and brand development in the rapidly emerging domestic CBD market, which could reach $22B in 2022; 2) Recent passage of the 2018 Farm Bill where hemp is removed from the Controlled Substances Act and removed from the jurisdiction of the Drug Enforcement Agency (DEA); 3) A vertically integrated business model with a significant 2018 hemp harvest. CWEB has established manufacturing and distribution capabilities, all of which sets the stage for accelerating near term business growth; 4) Continued rapid expansion of CWEB’s product retail locations including national chains and growth from its ecommerce platform; 5) Ongoing brand development and product innovations that deliver CBD as the active ingredient. Anticipated new product offerings include consumables, pet offerings and differentiated topicals / cosmetics." Canopy Growth (CGC)Canopy Growth is also doing interesting things. Similar to Charlotte’s Web, it sees incredible potential in the current hemp market in the U.S.. It’s one of the first Canadian cannabis producers to enter the hemp CBD market and has large plans to expand that part of its business. Canopy is also highly invested in cannabis products such as edibles and beverages making is a very interesting company to look out for before Canada opens its doors to edibles later this year.GMP analyst Martin Landry recently reiterated a Buy rating on Canopy stock, with a C$72 price target, suggesting the stock can rise 30% from current levels.Landry noted, "The BC greenhouses appear to be running smoothly across all areas of production, trimming and drying. We value Canopy using a sum-of-the-parts with pro-forma share count assuming the Acreage acquisition closes. We value Acreage at 22x consensus 2021 EBITDA of US$292m for a value of $15.00 per pro-forma share. Our valuation of Canopy’s legacy operations is unchanged at $31b (or $56.00 using a pro-forma share count) and derived using a DCF calculation with the following: 1) a 7.5% discount rate, 2) a 28% share of the recreational market, (3) a 28% EBITDA margin, and (4) a 3.2% terminal growth."Overall, Canopy has had 7 bullish analysts in its corner over the last three months, and 4 analysts playing it safe on the sidelines. Importantly, the 12-month average price target of C$80.17 showcases 46% in upside potential for the stock. Namaste Technologies (NXTTF)Namaste stock is a love/hate relationship for many investors. It’s had a ‘journey’ of sorts trying to find its footing in the industry. Slowly consolidating after a bumpy ride from 3.74 in Oct 2018 to 0.88 for the last trading day of May 2019, it’s finally gaining a slight uptrend recently. Steadily trying to find its ground through all the adversity, Namaste may potentially be gearing back up to its former glory. June might see Namaste finally get its grip on the market.Bottom LineHemp stocks might have great potential in the next few months. Especially with the increasing social media hype and trade war. Canada itself is having issues with China and has had to cut exports of canola to China. Many farmers might start to replace those crops with hemp. So keep a look out for companies like Charlotte’s Web and Canopy. Tech might also start to rebound. Namaste has had a rough few months but is really well positioned in the cannabis space as a tech company and not a producer. Diversification is key and these three stocks provide different opportunities in the cannabis sector.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.Disclosure: The author is Long NXTTF. Read more on the stocks mentioned: * Marijuana Stock Charlotte’s Web Looks Appealing at Current Levels * Cracks Are Forming in Canopy Growth (CGC) Stock * Namaste Technologies Stock Should Enjoy a Bright Future More recent articles from Smarter Analyst: * Buy Facebook (FB) Stock Into Earnings, Says Wedbush * All Eyes on Tesla (TSLA) Stock Ahead of Earnings; Wedbush Remains Neutral * Lannett Company (LCI) Stock Makes the Street Go Wild * Top Analyst Shares Two Cents on Amazon (AMZN) Stock as Earnings Approach
Namaste Technologies (NXTTF) has endured a lot of self-inflicted pain in the past months, as scandals, firings, loss of an auditor, and a plummeting share price has left investors and shareholders wondering if it can survive over the long term.This is unfortunate because the business model itself, of building an e-commerce platform that sells a variety of accessories into the cannabis market, along with an app that was built to serve medical cannabis patients, had a lot of potential.Now the company has devolved into battling to regain legitimacy and viability, even as it appears to be continue to struggle to find its way.While the market is familiar with the negative events surrounding the company, I think the real issue going forward is the uncertainty associated with not knowing anything about the performance of the company since its last earnings release.Some of its numbers and latest earnings reportIn its earnings release for the fourth fiscal quarter of 2018, Namaste generated net revenue of $3.9 million, essentially flat year-over-year.Revenue in its vaporizer business showed no growth in the reporting period. Its CannMart segment generated $32,000 in sales in the quarter, and its NamasteMD generated sales of $61,000.Gross profit in the quarter was $930,000, with the company losing $8.7 million after its operating expenses were paid.While on the surface these numbers do look abysmal, there are a couple of things that need to be taken into consideration. For example, with its vape business, it divested of its holdings in the U.S., which was a major reason for the low-growth story that unfolded. That's not to say it has been growing strong, only that the numbers weren't as bad as the appear, once adjusting for the loss of U.S. sales.As for CannMart, in the quarter of the earnings report it had only started selling several weeks before, so it didn't have an impact on the quarterly numbers. They should improve in the next report, whenever it is released.Namaste just released its latest earnings after a prolonged delay. It generated $15 million in revenue and earnings per share of -$0.16. Unfortunately for the company, this isn't going to do much to assuage the concerns of investors in the near term.That said, CannMart has a lot of potential, based upon a wide production selection, quality customer service, and same-day delivery. It don't think the market is even pricing in CannMart at this time because of the overwhelmingly bad news associated with its prior management. That has changed, and if current management is able to regain confidence of shareholders through trust and performance, it should be a solid catalyst for the company.ConclusionNamaste management has a monumental task ahead of it. It not only must work on growing revenue and becoming more efficient, but just as importantly, regain the trust of shareholders and the general market, that it isn't simply pumping up the stock without management commitment and the business model to warrant it.My view is the company does have a potentially solid business model, and its decision to build out an e-commerce platform to sell cannabis-related products has a chance to do very well. If it isn't able to deliver, other companies will, as the e-commerce model aligns with consumer demand.Namaste did receive the first no-cultivation ACMPR sales-only license from Canada, and that's positioned it to provide the services it offers. That gives it the right to sell medical cannabis on its CannMart site.I don't believe Namaste is a fraudulent business as some have suggested, as it has a business model that makes sense. But now that its released its financial statements, it must now show investors it has the ability to leverage its e-commerce platforms efficiently; the latest earnings period didn't do enough to prove it can. Until then, it's going to struggle to attract investors, or gain support for its share price.As the company stands today, it's a toss of the dice which way it'll go.Read more on Namaste Stock: * Namaste Technologies Stock Should Enjoy a Bright Future * There Are Too Many Red Flags for Cannabis Stock Namaste Technologies More recent articles from Smarter Analyst: * Can Curaleaf Stock Keep Going After This Week’s 22% Pop? This Analyst Says Yes * This Analyst Doesn't See a Comeback in Netflix (NFLX) Stock Any Time Soon * There's Light at the End of the Tunnel for Canopy Growth (CGC) Stock, Analyst Says * Aurora Cannabis (ACB) Wins a 'Buy' for Rolling Up the Marijuana Industry
While the cannabis sector was extremely hot in the last year, Namaste Technologies (NXTTF) stock has been one of the biggest failures. The company focused on building an online medical cannabis business and the market has shifted away from medical questioning the need for telemedicine applications. In addition, so many corporate red flags have the stock justifiably down to $0.50 where investors should stay far away. More recent articles from Smarter Analyst: * Top Analyst Sees Amazon's (AMZN) Innovation Powering Stock Higher * The CBD Beverage Market and How this Stock Is Set to Capitalize * Why Cronos’ Entry Into U.S. CBD Market Could Be Overrated Over the Long Term * Analyst Sees Canopy Growth Stock as a Winning Horse
The value of the transaction is C$1.5 million ($1.12 million), Toronto-based Namaste said in a Wednesday press release. Choklat is one of a few makers of premium chocolate in Canada and the only bean-to-bar maker in Alberta.
Back at its beginning, Amazon (NASDAQ:AMZN) was an online seller of books. That's it. Hard to remember those days, isn't it? Source: Shutterstock It still sells books, but it also sells much, much more. And in the process of growing into an online retail giant worth a staggering $800 billion, it also created one of the richest men on Earth. There may never be another Amazon. In fact, it is likely that there won't be another Amazon. But there are plenty of other fast-growing industries out there that offer companies the opportunity to dominate in a similar way. InvestorPlace - Stock Market News, Stock Advice & Trading Tips One of my favorites is the booming marijuana industry, which is on the verge of explosive growth as legalization spreads throughout the United States and even the whole world. The leading online retailer in marijuana stocks -- the "Amazon of Marijuana" if you will -- is Namaste Technologies (OTCMKTS:NXTTF). It's a $315 million company that operates 32 websites in 20 countries. Namaste considers itself "Your Everything Cannabis Store," offering vaporizers, glassware, cannabidiol (CBD) products, accessories, and more. ### Avenues for Growth for Marijuana Stocks and Namaste One reason I like this company is its wholly owned subsidiary CannMart, an online marketplace for medical cannabis that is sourced from various licensed producers. CannMart received the first no cultivation, sales-only license in Canada. * 10 Stocks to Sell in February Namaste also owns NamasteMD.com, an e-commerce platform that connects doctors with medical marijuana patients. A potential patient will fill out an application and have a video consultation with a doctor. If approved, the patient can receive their medical marijuana recommendation via email. Even more important is that same patient can have their prescription filled by CannMart and delivered to their home within two days. In the future, Namaste plans to incorporate its artificial intelligence (AI) technology into NamasteMD as well as its other business lines. Namaste currently has more than 1.5 million customers globally. Sales are expected to jump 69% to $18.6 million this year. The company's run rate (a month of sales annualized to a full-year number) should reach $100 million by this December, up more than 100% from the previous year. If the company can achieve that goal, the stock will be greatly undervalued compared to the rest of the cannabis industry. This is a strong business for several reasons, but I particularly like its diversity, ranging from e-commerce to medical marijuana to global telemedicine to AI. Those are some of the most cutting-edge industries of today. However, the stock has been under pressure the last few months following a short seller's unwarranted comments. It's a gift. That pressure has created an amazing opportunity to get into a well-established, global company. Over the long term, I can certainly see Namaste becoming the Amazon of marijuana stocks. If you'd like to learn more about Matt and profiting from the legalized marijuana trend, click here. Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy for the Rest of the Year * 10 Best Consumer Stocks to Buy in 2019 * 10 Triple-A Stocks to Buy in February Compare Brokers The post Where to Look for the Next Amazon appeared first on InvestorPlace.
The Toronto, Canada-based company said that it will be launching NamasteCafe, which are from its line of H.E.A.L.-branded food products, signifying Healthy Eating and Living. The company partnered up with Montreal restauranteur Jonathan Dresner to make the concept of cannabis cafes a reality. Dresner has helped to bring to life a number of upscale restaurant concepts, including Pigeon Espresso Bar and classy burger joint Notre-Boeuf-De-Grâce.
MedMen Enterprises (MMNFF), a the cannabis company, has 19 licensed cannabis facilities for cultivation, manufacturing, and marketing cannabis as a consumer product.
When the market is volatile, investors flee to safety. Often, investors will retreat out of growth names and into more established industries. We saw that trend play out in October on the over-the-counter ...
In states where recreational cannabis consumption is legalized, medical marijuana sales tend to fall. This trend has been seen in various markets, with data from MJ Freeway that covers four states-- Oregon, Washington, Colorado and Nevada -- demonstrating that medical marijuana sales declined once adult use was legalized. The data showed that medical sales were 39% of the market during the first month of legal recreational sales.