If you are interested in the stock market and you are looking at Wednesday’s trending tickers, you might notice that a handful of the stocks that are soaring today have come from the cannabis sector.
Joining the likes of Nutritional High International (CNSX:EAT) (which is up 80%) and Cannabis Wheaton (CVE:CBW) (up more than 20%) is Golden Leaf Holdings (CNSX:GLH) (OTCMKTS:GLDFF), which is an Ontario-based cannabis oil solutions company.
What’s Been Going On, Golden Leaf Holdings?
Primarily known for manufacturing and distributing products through its Chalice Farm dispensaries, Golden Leaf Holdings has had a productive couple of months and has made a number of announcements, one of which included its unaudited Q3 earnings report.
Perhaps what is most interesting about Golden Leaf’s surge today is that a stock can fall just as fast as it can rise, and it has been at least 4 weeks since the company’s financial results were posted, and 2 weeks since Golden Leaf disclosed that it will be opening a new Chalice Farms dispensary in Oregon, and yet the stock is still going strong, increasing nearly 30% on Wednesday, December 27.
Golden Leaf Announcements
On December 14, the Canadian company disclosed to the public that it has officially opened a new Chalice Farms dispensary in Portland, Oregon. More specifically, the dispensary is located on the Willamette River waterfront area, which is a massively popular location in Downtown Portland.
When you consider that the Oregon cannabis market has continued to grow at a rapid pace, with cannabis sales being estimated to have produced over $100M in tax revenue for the beautiful state, this could explain why the stock has continued to be on the rise.
The Q3 Report
The majority of the earnings report was positive, but there were still some losses reported as well, but clearly, that didn’t affect investors mentality too much considering the stock is still rising.
Golden Leaf Holdings posted a net revenue of $3.1 million, which, as a point of reference, is up from 2016’s net revenue of $2.4 million for the same period. That said, the Canadian company also reported a net loss of $3.2 million. For perspective, Golden Leaf Holdings reported a net loss of $2.3 million in the third quarter of 2016.
Despite reporting a few losses, CEO William Simpson stated that Golden Leaf plans on increasing top-line growth by furthering its retail brand, “starting with Portland, Oregon,” and based on the December 14th announcement, it seems the company is already well on its way.
The Takeaway
As we approach the new year, it will be interesting to see what industry takes over the market in 2018. For a while, people thought it was going to be cryptocurrency, but even that seems to have declined as of late, so the question being asked is: Will the cannabis sector take on the role that cryptocurrency played in 2017?
While that question might need to be discussed in more detail, I will say that I personally think today’s surge should give investors some indication that they should consider adding more cannabis stocks to their portfolios.
Featured Image: twitter
