MariMed Inc (OTCMKTS:MRMD) has rallied by more than 200% in 2018 even as other cannabis stocks crumbled after coming under pressure from short sellers. After a recent pullback, the stock could as well be headed’ to the moon on a positive outlook for the full year.
MariMed Price Action
The issuance of a positive outlook for the full year has gone a long way in strengthening MariMed’s sentiments in the market. The company is also fresh from posting double-digit revenue growth that appears to have strengthened investor confidence in the company’s long-term prospects.
With the upward momentum gaining pace, the stock looks set to take out the $3 a share mark as it continues to power high. Above the $3 a share mark, the stock should be on its way to the $3.80 mark, a critical resistance level that it needs to breach to record a new 52-week high.
On the downside, the stock faces immediate support at the $2.40 mark, a breach of which could see the stock dropping to the $2.10 mark, a critical support level. A breach of the $2.10 could see the stock turning bearish and drop to the $1.80 mark the next substantial support level.
Taking into consideration the fact that the larger cannabis sector has turned green after a poor start to the year, all indication is that MariMed will continue powering high having held steady during the sell-off phase.
What Does MariMed Do?
MariMed casts itself as a multi-state Professional cannabis company that develops owns and manages cannabis facilities as well as branded product lines. The company boasts of state of the art regulatory compliant facilities that act as models of excellence in horticultural principals as well as in cannabis products and dispensary productions.
Double-Digit Revenue Growth
MariMed looks set to continue trading higher on serving a number of catalysts that underscores robust growth. Investors have already taken note of recent developments, which explains why the stock has started trading higher on huge volume after a steep pullback.
Year-over-year solid revenue growth trajectory is a success that has continued to reaffirm the company’s growth prospects even as other companies remain under pressure in the industry. For the three months ended June 30, 2018. MariMed generated an 81% increase in revenues that came in at $2.9 million.
The Chief Executive Officer, Robert Fireman, attributes the double-digit revenue growth to the expansion and scaling of the current business model to more facilities in legal cannabis states.
“The recent opening and constant expansion of the medical cannabis program in Maryland has been fantastic. We believe this momentum for the Company will continue as we open our cannabis businesses in Massachusetts in Q3 this year,” said Mr. Fireman.
Vitprints Technology Licensing
Investors’ confidence in the stock also appears to have ticked higher on MariMed reiterating that it expects continued revenue growth from existing business units in five key states. The company is also in the process of improving the look and feel of its two key brands Kalm Fusion and Betty Eddies as it looks to strengthen its product line in pursuit of additional sales.
The signing of an exclusive global licensing agreement with Vitprints is set to provide the company with access to a proprietary cannabis printing technology. With the technology, the company should be on its way to creating a new category of precision dosed and dissolvable cannabis products.
The technology will also help the company manufacture products at speeds and efficiencies that create costs savings in a bid to generate significant incremental revenue streams.
“Our exclusive agreement with Vitprints puts MariMed on the forefront of precision-dosed branded cannabis products and technology that will, above all, delight consumers with a revolutionary product category and experience,” said Fireman.
What Next For MariMed
MariMed is trading 200% higher than it did at the start of the year and the stock looks set to continue climbing higher given the underlying fundamental. The company has shown it is firing on all cylinders when it comes to execution of its growth strategy depicted by double-digit revenue growth.
Considering the stock has started trading higher after a deep pullback, now may be the best time to get involved in a stock with huge long-term prospects. For early birds, this stock, without doubt, is headed to the moon.
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Disclosure: We have no position in MRMD and have not been compensated for this article.