Cresco Labs
Cannabis

Cresco Labs Inc (OTCMKTS:CRLBF) On A Bull Run

Cresco Labs Inc (OTCMKTS:CRLBF) continues to edge higher after generating a bullish divergence late last year. The stock is already up by more than 30% since January 1. Pullbacks from higher highs have so far acted as buying opportunities, from where bulls have come in and continued to push the stock higher.

Share Price and Catalysts Analysis

Supporting the upward momentum is a string of positive developments that continue to strengthen investor confidence in the stock. For starters, the company has embarked on an aggressive expansion drive that has seen it open a third dispensary as well as an online ordering platform for its cannabis products.

In addition, the company has expanded and diversified its footprint in the sector with an entry into the hemp sector. With the expansion, the company is planning to target all the states in the U.S, in pursuit of opportunities for growth.

Investors have continued to push the stock up the charts in response to the expansion drive. With the stock currently trading at the $8.92 a share level, it looks like a pullback play on a minor correction from record highs. Sell-offs from current highs should experience strong support at the $7.50 a share level, from where the stock is likely to continue powering high.

CRLBF Daily Chart

A breach of the $7.50 support level would leave the stock susceptible to further drops back to the $6.50 level, the next substantial support level. A violation of record highs of $9.10, on the other hand, would open the door for the stock to continue edging higher in line with the long-term uptrend.

About Cresco Labs

Cresco Labs bills itself as a vertically integrated multistate cannabis operator. The company manufactures and sales cannabis products across the United States. It also offers dry cannabis flower and vaporizer forms of cannabis and cannabis oil in capsules.

Why is Cresco Labs Skyrocketing?

Shares of Cresco Labs are skyrocketing on investors taking note of the company’s aggressive expansion drive that affirm growth prospects. The company is fresh from opening a CY+ dispensary in Pennsylvania, bringing to three, the number of dispensaries it has opened in the Pittsburgh area so far.

In addition, the company has opened the first of its kind online ordering feature as it looks to strengthen its sales channels in pursuit of cannabis revenues.

“We’re creating a retail experience that matches the varied needs of our patients. We are incorporating technology that can help patients get the product they want when they want it and without the wait. We are deeply committed to solidifying our market leadership in one of the most attractive and highly coveted markets in the country and expanding the relief we provide to patients in that state,” said CEO Charlie Bachtell.

Hemp-CBD Space Expansion

The opening of the third dispensary in Pennsylvania came just days after the multi-state cannabis operator opened the Hope Heal Health Dispensary in Massachusetts. The opening of the new dispensary follows the signing of an agreement with HHH last year for the creation of cultivation manufacturing, processing and dispensary operations in the state.

In addition to the expansion of cannabis dispensary operations, Cresco Labs has also sought to expand its footprint into the hemp-CBD space. In line with the drive, the company has confirmed the opening up of a subsidiary focused on hemp-derived CBD wellness products. With the new subsidiary, the company is planning to expand its footprint across all the 50 U.S states.

Well Beings is the name of the new subsidiary that Cresco Labs plans to use, to offer a full line of CBD wellness products.

“The purpose of this new business line is to demystify and build trust in CBD products, guiding consumers to understand the benefits of hemp and how to incorporate CBD-based wellness products into their daily lives,” said Mr. Scott Wilson, in charge of the new subsidiary.

Bottom Line

Cresco Labs is in the process of strengthening its sales channels in pursuit of revenue opportunities in the cannabis sector. The opening up of CBD dispensaries in Pittsburgh, as well as Massachusetts, attests to the company’s growth plan as it looks to target as many medical cannabis patients as possible. The dispensaries provide a reliable channel for the company to sell its products.

The creation of a new subsidiary to pursue opportunities in the hemp sector is another positive that should continue to strengthen the stock’s sentiments. After a solid start to the year, the stock looks set to continue trading higher.

We will be updating our subscribers as soon as we know more. For the latest updates on CRLBF, sign up below!

Disclosure: We have no position in CRLBF and have not been compensated for this article.

GET NOTIFIED
Sign up for our next MicroCap Runner ahead of the crowd!
We hate spam. No Hidden Fees. Unsubscribe Anytime.
Cresco Labs Inc (OTCMKTS:CRLBF) On A Bull Run
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top