Diego Pellicer Worldwide Inc (OTCMKTS:DPWW) has had an impressive year on the earnings front depicted by the second year of record-breaking sales. The stock, on the other hand, has not had the best of runs having shed a substantial amount of market share.
Diego Pellicer Price Analysis
However, things are starting to look up for the stock, as the company continues to deliver robust revenue growth. Investor’s sentiments in the stock have started inching higher depicted by high turnover in traded shares in the market.
The stock rising to six months high after underperforming for the better part of the year attests to a change in sentiments and prospects in the market. Diego Pellicer has since bottomed out and as it, stands, looks set to start 2019 on a roll, as it continues to recoup losses accrued in 2018.
A 600% rally in the month of December alone affirms the emerging uptrend as the stock continues to turn the page after one of the worst routs in the market. After the recent surge, the stock faces immediate resistance at the $0.60 level.
A rally followed by a close above the key resistance level should bring to an end the bearish run that had plunged the stock to all-time lows. Above the $0.60 level, Diego Pellicer looks set to make a run for 2018 highs of $1.50 level.
Any sell-off after the recent surge would experience solid support at the $0.16 level, below which the stock remains susceptible to further drops. In our view, Diego Pellicer remains well positioned to finish the year on a high given the strength of the upward momentum.
What Does Diego Pellicer Do?
Diego Pellicer casts itself as a real estate and consumer, retail Development Company. The company acquires and leases properties to licensed cannabis operators in America. It also provides growing and processing properties to interested parties in addition to retail and medical, retail sales space.
Why is Diego Pellicer Skyrocketing?
Diego Pellicer started the year on a role having reported record sales numbers for the fiscal year ended December 31, 2017. It now appears that the company continued to generate robust sales, capping yet another record-breaking year.
In a regulatory filing, the marijuana-focused company says it generated a 150% increase in gross revenue for the fiscal year ended December 1, 2018.
“It’s clear that the multi-billion dollar cannabis market is growing, and so is Diego Pellicer. Our premium brand featuring the finest products, exceptional service in an approachable, world-class environment, along with our management leadership and expertise, has proven successful,” said CEO Ron Throgmartin.
In addition to reporting record gross revenues, the National Cannabis Awards has honored the company as the Best Retail Center and the Most Valuable Brand of the year. Buoyed by this year’s performance the Chief Executive maintains that 2019 will be much better.
Diego Pellicer has already embarked on an expansion drive as it continues or targets new markets as well as retail locations in California. The company is in the process of implementing a new scalable business model that it says will accelerated expansion into 29 additional states in the U.S.
The company has already evolved its business model into a national premium branding, licensing and royalties model. The transition seeks to accelerate expansion into new markets all in the effort of establishing upscale stores and offering quality products.
Diego Pellicer has also negotiated additional rental income with some of its existing stores thus strengthening its cash flow streams. A solid cash flow stream has essentially reduced the need of borrowing capital to support the expansion drive.
“We know this sector, and we continue to evolve our business model to dominate in a more competitive market. Diego Pellicor’s licensed stores continue to experience sales growth in the country’s most aggressive retail markets by leveraging management’s extensive industry expertise and the premium Diego brand, “ said Mr. Throgmartin.
What next For Diego Pellicer
Diego Pellicer solid performance on sales growth is one that affirms its growth prospects. The company embarking on a rapid expansion drive is another development that underlines commitment to pursuing new opportunities for growth.
While the stock has taken a significant hit, sentiments in the market are slowly changing. Investors have started to take note of the impressive sales numbers that point to a bright future. The stock looks set to finish the year on a high after bottoming out from all-time lows. It should also continue to climb high in 2019.
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Disclosure: We have no position in DPWW and have not been compensated for this article.