Leafbuyer Technologies Inc (OTCMKTS: LBUY) Breakout Looms After Steep Pullback

Leafbuyer Technologies Inc (OTCMKTS: LBUY) has taken a significant hit after an excellent start to 2019. A 30% plunge form this year high does not provide an accurate reflection of the company’s long-term prospects.

Catalysts And Share Price Analysis

For starters, the company is fresh from signing 50 Oklahoma Dispensary clients all but underscoring rapid marketing campaign in pursuit of sales channels. In addition to growth in Oklahoma, the company has unveiled its mobile application in Colorado as part of its aggressive marketing campaign.

The company’s Greenlight platform attracting 80,000 users is another development poised to strengthen a push for accelerated sales growth. Leafbuyer Technologies has also set sights on California cannabis market having launched a Los Angeles satellite Office as part of a national footprint expansion drive.

Leafbuyer Technologies expansion drive has already started paying off, as the company is fresh from reporting a 36% increase in sales for the quarter ended March 31. The growth provides momentum and solid foundation for what could turn out to be a record-breaking year on revenue generation.

LBUY Daily Chart

Amidst the flurry of positive developments that underscore underlying growth, the stock has continued to edge lower. Failure to power through the $1.60 level on two attempts has resulted in the stock plunging back to the sub $1 a share level.

Recent price action activity indicates the stock might have hit solid support at the $1 mark, from where it could bounce back to this year highs. Above the $1 technical level, Leafbuyer Technologies remains well positioned to climb the cannabis ladder.

Conversely, a breach of the $1 support level could result in the acceleration of the sell-off wave that could see the stock plunging back to 52-week lows.

In our view, Leafbuyer Technologies is a potential bounce-back play given the underlying fundamentals supporting further upside action.

About Leafbuyer Technologies

Leafbuyer Technologies operates an online platform through which customers can access cannabis deals as well as special information for connecting with cannabis dispensaries.

36% Sales Growth

Leafbuyer Technologies market sentiments are likely to inch higher on the confirmation of a 36% cash sales growth in the recent quarter. The company attributes the increase to platform enhancements as well as multi-state sales team expansion. Sales growth also benefited from diverse product offerings.

“This growth provides momentum and a solid foundation for 2019. As we increase our national footprint and expand our industry-leading platform, we’re forecasting significant sales gains through the remainder of the year,” said Kurt Roster, CEO of Leafbuyer.

Untapped Markets Expansion Drive

Sales growth looks set to be the order of the day going forward as Leafbuyer technologies continue to expand its footprint into new legal medical and recreational cannabis markets. The focus going forward is the implementation of a client and consumer application solutions to boost presence in untapped markets with prospects of increasing bottom line revenue.

Leafbuyer Technologies has already inked strategic partnerships with 50 licensed medical dispensaries in the Oklahoma market as part of an effort of boosting revenue streams in the state. The launch of a west coast regional office in Los Angeles California should allow the company to target western cannabis markets including Washington, Oregon, Arizona, and Nevada.

The expanded national footprint should allow sales initiatives to be more heavily focused, ideal for strengthening the revenue streams

“California is now a mature recreational and medical cannabis market, which makes this the opportune time to establish a secondary operation in the southern part of this industry-leading state,” said Kurt Roster, CEO of Leafbuyer.

Leafbuyer Technologies’ Greenlight platform, designed to make it easy for consumers to make orders for cannabis products and earn loyalty points, is also gaining traction with consumers in Colorado and Oklahoma. The platform subscription base has already clocked the 80,000 milestone providing another unique sales channel.

Bottom Line

Down by 30% from this year highs, Leafbuyer Technologies is still an exciting pick for investors eyeing opportunities in the cannabis sector. Expansion into Oklahoma and California exposes the company to unique opportunities for growth.

Sales growth in the recent quarter attests to a company in a phase of robust growth. While the current share price does not provide an accurate reflection of a company with tremendous potential, a break out from the $1 mark could be in the offing.

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

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

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Leafbuyer Technologies Inc (OTCMKTS: LBUY) Breakout Looms After Steep Pullback
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