American Cannabis Company Inc (OTCMKTS: AMMJ) fall from grace over the past year might as well have presented an opportunity to buy the stock at a discount. The stock is back to where it started the year at, even on underlying fundamentals turning bullish.
American Cannabis Company Inc Price Action
The broader cannabis sector has turned bullish a development that could work in the stock’s favor, in fuelling the upside action. In addition, the Company has confirmed that it is working on a multitude of active projects that have the potential to strengthen investor sentiments in the stock.
American Cannabis Company has also confirmed that it is analyzing various strategic acquisitions as part of an effort of diversifying and expanding the current brand. Strengthening of operations in Colorado is another development that should continue to excite investors.
The stock bouncing off the $0.30 support level should thus not come as a surprise. Above the critical support level, the stock looks set to surge, as was the case at the start of the year. However, a breach of the technical level could result in the acceleration of the sell-off wave that could result in the stock plunging further.
American Cannabis Company Inc Background
American Cannabis Company, together with its subsidiaries, provides solutions for businesses operating in the regulated cannabis sector. The Company offers consulting service to companies in the various stages of cannabis development such as business planning as well as cannabis and hemp business, license applications.
Improved Operational Efficiency
As American Cannabis Company has continued to take a hit in the market, so has it continued to work on a multitude of active projects that have the potential to generate significant value going forward. For starters, it has completed the deployment of a vertically integrated cannabis operation in Denver and Colorado.
The Company has also continued to offer consulting services to clients in Oklahoma and Massachusetts seeking to open retail cannabis operations. International expansion has also come into play as the Company has been engaged for conceptual design activities for a cannabis cultivation and processing facility in Macedonia.
American Cannabis has also expanded its footprint in South Africa, Bahrain, and Turkey, where it is already offering consulting services. The expansion drive affirms why the stock deserves a higher valuation after coming under pressure in recent months.
“The overall goal and mission for ACC is to continue to stay on the cutting edge of the industry. It has been a fast-paced year for ACC thus far, and the Company anticipates taking on more business while scaling up its respective divisions organically,” American Cannabis Company in a statement.
The race for inorganic growth is also heating up as American Cannabis Company seeks to accelerate growth in the core business. Management has since confirmed they are eyeing strategic acquisitions that have the potential to diversify and expand the brand.
When it comes to product line and suite of services, American Cannabis Company has also set sights in remaining a leader in innovation. Consequently, the firm is working on an innovative technology that will have a significant impact on cannabis cultivation.
American Cannabis Company is also working on the rollout of new products as it seeks to diversify and strengthen its streams of revenue.
The unveiling of remote operational management services, targeting cannabis business operators underscores the expansion drive. The Company has since taken a number of management contracts and is currently working on deploying dispensary operations in a number of states.
The Company has since worked with two new clients, setting the stage for the launch of two new dispensaries in Colorado and Oklahoma. Laughing Grass is one of the dispensaries that has gone live in 1110 West Virginia Avenue in Denver, Colorado while PHARM+HOUSE is the second dispensary located at 1610 N street in Shawnee Oklahoma.
“This retail setting has been designed to streamline the customer experience while offering a wide selection of products to address the needs of every patron,” stated Tyler Schloesser, Chief Operating Officer.
What next For American Cannabis Company Inc
A poor run in the market might as well have presented an opportunity to buy American Cannabis Company at a discount. The Company continues to strengthen its core business with expansion into new markets as well as the signing of deals for active projects, sure to generate long-term value.
A bounce back from current lows is on the horizon on investors taking note of the Company’s tremendous potential as a provider of consulting services in the multi-billion-dollar cannabis sector.
We will be updating our subscribers as soon as we know more. For the latest updates on AMMJ, sign up below!
Disclosure: We have no position in AMMJ and have not been compensated for this article.