Undervalued Stocks Right Now: The Green Organic Dutchman

Undervalued Stocks

Looking at the marijuana index this past week, any investor might see the red as the perfect buying opportunity. The cannabis industry is young and active, so are we seeing some undervalued stocks at present?

In particular, I’m looking at The Green Organic Dutchman (TSX:TGOD). This stock has been on a bit of a lull this month, but the potential here is big.

Undervalued Stocks: The Green Organic Dutchman (TGOD)

Founded in 2012, The Green Organic Dutchman began listing on the Toronto Stock Exchange in May of this year. According to its website, “The company grows high quality, organic cannabis with sustainable, all-natural principles.”

Undervalued Stocks to Watch

At the highest point in its young exchange life, TGOD reached $8.78. So perhaps this stock needs to fall lower than its current value of $5.61 to consider TGOD an undervalued stock.

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However, I think this lull won’t last.

What adds immense value to this stock, is The Green Organic Dutchman’s affiliation with only one of the biggest names in cannabis—Aurora Cannabis (TSX:ACB). 

Aurora owns a 17.5% stake in TGOD, and it has made a significant investment of $78.1 million CAD to get it. Also, TGOD has raised over $350 million CAD and boasts over 20,000 shareholders.

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Today, the company announced a further expansion of its international portfolio. It has entered a strategic joint venture with LLACA Grupo Empresarial. The pair will create a 50/50 owned company to enter the medicinal cannabis market in Mexico.

For these reasons, The Green Organic Dutchman (OTCQX:TGODF) could be considered undervalued, as the potential for it to become a premier brand in the cannabis space is massive.

With cannabis legalization in Canada nearing, and the US taking its time to adopt the drug, this industry is still in its infancy and has much further to go.

For a low price of $5.61, this company has great products along with superior brand recognition and could be considered an undervalued stock. What do you think?

Featured Image: Depositphotos/© shefkate