Cannabis stocks have been sliding over the last two weeks despite experiencing substantial gains in mid-April. The North American marijuana index, which tracks the leading cannabis stocks operating in the United States and Canada, declined slightly on Thursday – extending the bear run to the two weeks low of 243 points.
The North American Marijuana Index has been declining since it had hit an all-time high of 363 points early in the year. Although the forecast for sales growth is robust, analyst’s downgrades on higher valuation concerns impacted trader sentiments.
Terra Tech Corp share price lost 60% of its value since the start of this year. Terra Tech shares currently trade around $2.68 – with the 52-week range of $0.14 – $5.74 per share.
Market pundits, however, believe that Terra Tech stock has the potential to bounce back sharply, supported by improvement in its financial numbers and aggressive growth plans.
Its fiscal 2017 revenue rose 41% year over year to $35 million, driven by its extensive market penetration in California and Nevada.
Commenting on the business strategy, its CEO said, “Our strategy to establish our Blüm™ and IVXX™ brands as premium cannabis experiences in targeted states set the foundation for the Company to quickly expand into the adult use market when Nevada welcomed legalization in July 2017, followed by California in January 2018.”
The company is looking to expand its footprints in key U.S. cannabis markets. It has already been operating two dispensary operations in California, and the company is looking to open one more this year.
The company expects its total cannabis production from California to land around 20,000 pounds per year. On the other hand, Terra Tech plans to expand its market position through acquisitions and investments for improvement of their infrastructure.
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