GD Entertainment & Technology Inc (OTCMKTS:GDET) is expanding its operations into the cannabis market as it seeks to reinvigorate its ailing prospects. The company has been under immense pressure in the recent past, having paid a hefty price on the cryptocurrency market imploding. With cryptocurrencies struggling to bounce back after one of the worst routs, the company has had to diversify its operations in pursuit of new opportunities for growth.
GDET Share Price Analysis
The company has since confirmed the formation of a subsidiary with a CBD product line that is to spearhead its entry into the multi-billion industry. The news has helped shore the stock’ sentiments in the market if recent price action activity is anything to go by.
After plunging below the $0.01 mark and remaining subdued below the critical psychological level, GD Entertainment has bounced back on investors reacting to its new strategic drive. A 100% spike from all-time lows has once again reinvigorated the stock’s prospects waiting to see if the bullish momentum has the strength to continue pushing the stock up.
While the stock has once again come down tumbling after initially taking out the $0.02 mark, it needs to hold above the $0.01 mark. The stock stabilizing above the $0.01 mark is essential if it is to remain a fundamental investment as a cannabis play. A plunge below the $0.01 mark would thwart the stock’s sentiments and prospects.
What Does GD Entertainment Do?
GD Entertainment is a company focused on high growth industries. The company is striving to become a premier cryptocurrency mining company. It also markets blockchain and financial products. The company has also set sights on the cannabis sector as part of its diversification strategy.
Why is GD Entertainment Bottoming Out?
After a long period of underperformance, GD Entertainment has started showing signs of bottoming out having succumbed to cryptocurrencies implosion. Expansion into the cannabis sector is seen as a development that could help reinvigorate growth at a time when the cryptocurrency sector is under immense pressure uncertainty.
The Greenery is the company’s new subsidiary, tasked with the responsibility of pursuing opportunities for growth in the cannabis sector. Plans are underway to position the new subsidiary as the premier distributor of CBD products. The subsidiary already boasts of a well-refined product line that should kick-start the parent company’s push for revenue in the sector.
“[..]I believe we are entering the CBD market at the opportune time. With the Company’s current business plan and short-term objectives, we will yield aggressive results. I take pride in all GDET products, and with this newest venture it is no exception, we stand by our motto to be innovators with best in class products and service,” said CEO, Anil Idnani.
Expansion into the cannabis sector comes a month barely after the company confirmed the launch of its e-commerce platform DreamCard. The website is operational following the signing of an agreement with Lion Credit Card.
GD Entertainment is currently working on expanding the platform’s product lineup to attract traffic. The management is also working on enhancing social media and marketing campaigns in a bid to promote products available on the platform. All these efforts are geared towards attracting more customers into the platform in pursuit of sales.
Expansion into other areas does not mean that GD Entertainment is going slow on its cryptocurrency operations. In January, the company received two Satoshi Bitcoin ATM machines as it looks to take advantage of the growing Bitcoin ATM market.
Idnani says” At this time, my team is working hard to implement a marketing strategy with a reputable branding agency so that we may separate ourselves from the competition. We have located several suitable locations to launch this unit, and once it is perfectly configured, the company will immediately ship the ATM to our final choice of location.”
Diversification appears to be GD Entertainment latest play as it looks to revitalize growth after months of underperformance. The company has since expanded its footprint into the e-commerce space as well as the cannabis sector. With the company still focused on the cryptocurrency sector, the future looks bright.
The stock has taken a significant hit over the past 12 months. With the company’s long-term prospects, turning brighter by the day, a bounce-back of the stock looks likely. GD Entertainment looks like an ideal breakout play on recent investments paying off.
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Disclosure: We have no position in GDET and have not been compensated for this article.