As the broader cannabis sector is trading near the oversold zone, now it’s the right time to consider the right company with strong potential. Based on the technical and fundamental analysis, we think BevCanna (CSE:BEV) (OTC:BVNNF) (FRA:7BC) might be an interesting one to watch in 2020. Here are the key factors in support of the company.
- BevCanna’s (CSE:BEV) (OTC:BVNNF) (FRA:7BC) patented, water-soluble technology makes for a highly bioavailable and consistent experience, and more importantly, it is scalable.
- The company’s bottling and branding expertise is also a huge advantage and point of difference for BevCanna
- BevCanna has a world-class manufacturing facility (40,000 Square foot, with up to 170,000 square foot expansion pre-approved) which can bottle up to 72 million units per shift, or 216M units a year. This means there’s plenty of room to grow as the market expands.
- Multiple revenue streams include house brands, joint ventures, licensing, acquisitions, and white label manufacturing services, among others.
- BevCanna’s (CSE:BEV) (OTC:BVNNF) (FRA:7BC) is strategically situated in the highly fertile Okanagan region and enjoys exclusive rights to a pristine alkaline spring water aquifer. It also has one of the most envied outdoor cultivation locations in the world, where BevCanna will be operating a large scale, 130-acre outdoor cultivation site.
- #BVNNF stock is oversold on the chart (RSI at 26) – Signals a sharp bounce anytime.
Technical Analysis
Investment Highlights
The cannabis industry has evolved at a fairly remarkable pace over the course of the past few years and it now includes firms which are not only in engaged in producing cannabis flower. One of the upcoming industries is the pot-infused beverage space and many companies have entered that rapidly growing market.
One of the companies in that space with a lot of promise is BevCanna Enterprises Inc. (CSE:BEV) (OTC:BVNNF) (FRA:7BC). It is important to note that the cannabis-infused beverage market is expected to grow rapidly and BevCanna is the sort of small company that can generate substantial gains within a short span of time.
Several analysts believe that the selloff in the Canadian cannabis market is almost over and with the legalization of the cannabis-infused drink back in October; companies like BevCanna are well placed to be successful in 2020.
Huge Industry Opportunity
According to cannabis industry experts, the pot-infused beverage industry is expected to grow at a breakneck pace over the next few years. At this point in time, it is only worth $89 million but it could be worth as much as $1.4 billion in 2023 and ultimately $4.4 billion in 2025. Even if BevCanna can capture half a percent of that market then it could generate revenues of $22 million a year.
While it is true that the meteoric rise in revenues might not always reflect on the stock price, but there is a very good chance of BevCanna’s growth having a highly positive effect on its stock price.
There are a range of factors that indicate that BevCanna Enterprises Inc’s (CSE:BEV) (OTC:BVNNF) (FRA:7BC) stock could be heading for explosive growth in 2020. The company is an early mover in the market and historically, it has been seen that companies that move into a nascent sector early end up being the biggest players. The success of Monster in the energy drinks space is a case in point.
On the other hand, it is also important to mention that BevCanna is one of the more innovative companies in this particular space and is committed to producing high-quality pot-infused beverage products. At the end of the day, innovation is a fairly important factor in the growth of a company in any sector. Market experts also believe that BevCanna Enterprises Inc. (CSE:BEV) (OTC:BVNNF) (FRA:7BC) enjoys some inherent advantages which are going to give the company a competitive advantage in the industry in the years to come.
Bottling And Branding Expertise
The company’s patented, water-soluble technology makes for a highly bioavailable and consistent experience. On top of that, this technology is scalable. Additionally, BevCanna management’s bottling and branding expertise is a huge advantage and point of difference, as is its world-class manufacturing facility. The facility is 40,000 square feet—with up to 170,000 square foot expansion pre-approved—and can bottle up to 72 million units per shift, or 216M units a year.
Multiple Revenue Streams
Last but not least, the company is also looking for creating a range of other revenue streams that include revenue streams include house brands, joint ventures, licensing, acquisitions, and white label manufacturing services, among others.
BevCanna Enterprises Inc. (CSE:BEV) (OTC:BVNNF) (FRA:7BC) has the resources, expertise, and ambition grow into one of the bigger players in this space and it has the wherewithal to grow at a fast clip in 2020, which is why investors should keep an eye on the latest developments.
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Featured image: BevCanna
