Upward momentum in Liberty Health Sciences Inc (OTCMKTS:LHSIF) shares continues to gain pace, as investors react to recent developments that show the company is enjoying significant growth in Florida. The company reporting record revenue increase is the latest catalysts fuelling the upward momentum as the stock continues to bounce back from this year’s lows.
Liberty Health Sciences Price Analysis
Liberty Health Sciences is one of the cannabis plays that felt the full brunt of short sellers in the cannabis sector in the first half of the year. Since the start of the year, the stock has shed more than 65% in market value. However, since the start of September, the stock has recouped some of the losses as it continues to bottom out.
After breaching the $0.80 mark, a critical resistance level, the stock looks set to make a run for the $1.10 mark, seen as the next resistance level. Above the $0.80 mark, bulls should be in control even though the stock remains engulfed in a downtrend.
The stock needs to rise and stabilize above the $1 a share mark to affirm suggestions that short sellers have lost control and it is the turn for bulls to push the stock higher. If recent developments in the broader industry are anything to go by, then Liberty Health remains well positioned to continue climbing high as investors continue to flock to the multi-billion industry.
About Liberty Sciences Health
Liberty Health Sciences is a cannabis company that seeks to provide high-quality cannabis experience for both recreational users and those who use marijuana for medicinal purposes. The company produces and distributes various cannabis products mostly in the state of Florida. It also boasts of a partnership with a Veterans Cannabis Project that supports research programs that seek to leverage cannabis in the treatment of trauma
Florida Cannabis Opportunity
The stock has bounced back on huge volume from this year’s lows on investors taking note of a string of announcements that have reaffirmed the company’s long-term growth prospects. Florida is turning out to be an exciting market that the company can rely on, for accelerated growth going forward.
For the three months ended August 31, 2018, the company recorded a 95% increase in sales revenue leading to revenues of $2.2 million. According to the Chief Executive Officer, George Scorsis, the double-digit, revenue growth reflects a wider recognition of the company’s brands in the state.
Corresponding patient count in the quarter surged to 10,000 patients representing a 112% year over year growth. The increase underscores the company’s operational efficiency expected to be a key driver of accelerated revenue growth going forward.
“Liberty will remain committed to diversifying and adapting to the ever-changing cannabis market, and we are looking forward to expanding our operations across the state of Florida and beyond,” said Mr. Scorsis.
In a bid to accelerate revenue growth in Florida, the company has embarked on an expansion drive as it seeks to expand its footprint. The company already operates four dispensaries as well as six delivery hubs. It has also signed seven new leases for new dispensaries which if approved will strengthen its footprint allowing it to diversify its revenue-generating streams further.
The provider of high-quality cannabis has also received a go-ahead to manufacture and distribute a line of products branded as Solei developed by Aphria. The products should strengthen the company’s product line allowing it to deliver a diverse selection of products for reaching out to a wider target market.
In addition to revenue growth and expansion drive, investors also appear to have taken note of the fact that the Florida Department of Health has given the company the go-ahead to implement FlorPass. FlorPass will serve as the state’s first online patient management system.
“This is not only a functional way to do transactions; this is a transformation in how Liberty will build stronger relationships with our patients by really understanding how they are using our products and as a result, ensuring that they are provided with the most beneficial and optimal offerings and experiences,” said Mr. Scorsis.
What Next For Liberty Health Sciences
Liberty Health Science share price has risen from the $0.60 to the $0.89 in two weeks an indication of growing investor confidence in the stocks long-term prospects. The gain has come primarily on expectations the company will continue to enjoy robust revenue growth as it continues to expand its footprint in Florida.
Given that the upward momentum appears to be gaining pace by the day, now may be the best time for early birds to get involved in a stock that is set to fly high as the company continues to pursue opportunities in Florida.
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Disclosure: We have no position in LHSIF and have not been compensated for this article.