It’s hard to understand why some cannabis penny stocks are down and others are not. We know how volatile the market has been for almost a month now. We’ve seen price corrections left, right, and center.
Today, we’re looking at The Flowr Corporation (TSXV:FLWR).
Cannabis Penny Stocks: The Flowr Corporation
In a research report to clients two days ago, Clarus Securities analyst Noel Atkinson gave FLWR stock a ‘Speculative Buy’ rating and a one-year price target of $5.00. This would imply a return of 55.3% at the time of publication.
This report gave a much-needed boost to these underperforming cannabis penny stocks, which had fallen dramatically from $4.00 to $3.22 the previous day. The stock has been climbing back since, yo-yo-ing up to $3.73. But today’s price sees the company trading down 0.5% at $3.59 per share.
In his report Atkinson sang The Flowr Corp praises:
“The Flowr Corporation is one of the very few Canadian licensed producers (LPs) of cannabis with experience in successfully scaling indoor cultivation of premium product […] Flowr seeks to fill what we see as one of the most lucrative product gaps in the Canadian cannabis sector—premium flower with sufficient capacity to serve a national customer base.”
He hasn’t plucked these words from thin air. Flowr has been fulfilling on its operations. It successfully fulfilled purchase orders from British Columbia, Nova Scotia, and Ontario in-full and on-time for October 17th—the first day of the adult-use market in Canada.
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The company has also launched a new Ace Valley brand in partnership with the team behind the popular Ace Hill Beer.
And further, Flowr also has 2019 production in its sights. It took over a 50,000 square foot R&D facility funded by the Hawthorne Gardening Division. Opening in 2019, this facility will enhance production numbers.
Atkinson continued:
“The Company has its cultivation and dried flower sales licenses and supply agreements with at least three provinces including B.C. and Ontario, and is expected to ramp revenues substantially in 2020 as it brings its Kelowna, B.C. campus expansions online.”
Do you think the Flowr cannabis penny stock could reach $5 in a year?
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