Leafbuyer Technologies Inc (OTCMKTS:LBUY) continues to make some ground after underperforming in 2018. The upward momentum has continued to pick up some steam, depicted by a 150% spike from one-year lows. Recent price action activity provides clear evidence that a sell-off wave that had pushed the stock to all-time lows has lost momentum and that bulls are slowly regaining control.
LBUY Share Price Analysis
The stock’s sentiments have inched higher in response to the company announcing expansion into the Oklahoma Medical Cannabis Market. The company has followed the expansion with the signing up of more than 50 licensed medical dispensaries as it continues to push for market share in the city.
Renewed investor interest also comes on the company announcing record sales growth in the recent quarter, all but affirming robust revenue growth. The company’s websites also continue to attract massive consumer following creating an exciting base for advertisements.
The fact that the company appears to be firing on all cylinders especially in pursuit of additional sales channel, explains why the stock is trading in a steep uptrend. A spike in share price has since catapulted the stock to a key resistance level at the $1.60 level.
A rally past the psychological resistance level should bring to an end a bear wave that had threatened to plunge the stock to multi-year lows. Above the $1.60 level, the stock would have turned bullish with tremendous prospects of surging back to 52-week highs.
The stock also faces support at the $1.20 level on sell-offs. A breach of the support level could open the door for short sellers to push the stock to the $0.80 mark, which happens to be the next support level. Below the $0.80 level, the stock could regain its bearish status.
What Does Leafbuyer Technologies Do?
Leafbuyer Technologies casts itself as the most comprehensive online source for cannabis deals as well as information. The company operates an online platform that offers deals on various cannabis products as well as information that connect patients to various medical marijuana dispensaries.
Why is Leafbuyer Technologies Rallying?
After a long period of consolidation, shares of Leafbuyer Technologies started ticking higher on the company announcing record sales for the December quarter. The company registered a 68% increase in sales in the quarter.
Sales growth should continue in 2019 as the company has made major industry moves as it continues to strengthen its revenue streams. For starters, it has launched Leafbuyer Wallet and Leafbuyer Loyalty. The company has also acquired Greenlight as it continues to expand its footprint in the cannabis dispensary space.
“Our national footprint continues to widen as we promote our services in all legal markets across the United States and Canada. Our revenue grows as the time-saving and valuable benefits we implement to continue to evolve, and our sales and marketing resources expand,” said Kurt Roster, CEO of Leafbuyer.
In addition, the company has expanded its footprint into the Oklahoma Medical cannabis market. An aggressive marketing and advertising initiative have seen the company ink deals with more than 50 licensed dispensaries set to utilize its marketing services.
“With more than 900 licensed dispensaries, Oklahoma is a large and fiercely competitive market. Through Leaf buyer’s offerings and services, like Leafbuyer Loyalty and texting, we will help these dispensaries diversify their platforms, separate themselves from the competition, and attract and retain consumers,” said Mark Breen, COO of Leafbuyer.
The company’s website, designed to connect people to cannabis deals and providing relevant information related to the industry, is also gaining traction when it comes to traffic. Total network traffic clocked highs of 9.85 million impressions in January an indication of its credentials as a go-to website for information related to the burgeoning sector.
Higher traffic flow into the website paves the way for the company to monetize the customer base as a way of creating new revenue streams.
For early movers eyeing opportunities in the cannabis sector, Leafbuyer is an ideal play as it continues to trade at a discount. The company has carved for itself a substantial amount of market share when it comes to online services in the cannabis sector.
With the company’s online platform gaining traction, the company remains well positioned to generate significant value on the e-commerce front. That said the stock looks set to continue powering higher as investors take note of recent progress that affirms the company’s growth prospects.
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.