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MPX Bioceutical Corp (CNSX:MPX) Ready To Breakout

MPX Bioceutical Corp (CNSX:MPX) Ready To Breakout
Written by
Jim Bloom
Published on
September 4, 2018
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A stellar financial report depicted by a 224% increase in revenue might as well be the catalyst that will push MPX Bioceutical Corp (CNSX:MPX) up the charts. Despite a solid start to the New Year, the stock has continued to trade in a tight trading range. However, with the upward momentum gaining pace it could be a matter of time before it breaks out.MPX Bioceutical Price AnalysisA quarter of strong topline results is the catalyst that continues to strengthen investor confidence in the stock. Investors have also taken note of the impact of a recent acquisition that appears to have bolstered the company’s growth prospects on the expansion of distribution capabilities. MPXEF Daily ChartWith price action pointing to further movement on the upside, the stock needs to rise and stabilize above the $0.84 mark to stand a chance of rising to 52-week highs of $0.94. Given that the stock has traded in a tight trading range for the better part of the year, it faces immediate support at the $0.50 mark on any sell-offs.In our view, the stock remains well positioned to continue surging, given the string of solid fundamentals that continue to strengthen investor confidence.About MPX Bioceutical CorporationMPX Bioceutical operates in the natural health products industry. It casts itself is a company focused on providing management staffing and administrative services to medical cannabis-focused companies. In addition, it manufactures and distributes all sorts of nutraceuticals such as plant-based medicines.Why is MPX Bioceutical a Breakout Stock?The serving of a solid catalyst in the name of a stellar earnings report might as well have strengthened MPX Bioceuticals sentiments in the market. Investors are slowly taking note of the company’s long-term prospects, depicted by high turnover in traded shares in recent trading sessions.For the three months ended June 30, 2018, the company generated revenues of $14.5 million, representing a 224% increase from last year. Quarter-over-quarter revenue growth stood at 81% further affirming suggestions that 2018 could be a pivotal year for MPX Bioceuticals as it continues to execute on its growth strategy.Gross profit in the quarter rose to $3.1 million from $1.8 million. However, gross margin dropped to 21.3% from 40.3% a reflecting the impact of the Arizona Acquisition.

“Our recent acquisitions within the State of Arizona, the expanded distribution capabilities for our MPX and Timeless wholesale brands, as well as the sales growth at our Health for Life retail dispensaries, have significantly strengthened our results,” said CEO, Scott Boys.

Buoyed by Q1 solid performance, MPX Bioceutical has increased the tempo in pursuit of state licenses as it looks to strengthen its distribution capabilities in the cannabis industry. Laying foundation in multiple states is part of the company’s strategy that seeks to strengthen revenue streams in pursuit of shareholders valueMaryland Licensing ApprovalA solid earnings report is not the only catalyst pushing the stock up the charts. The announcement that the company has received final licensing for the opening of two managed dispensaries in Maryland also appears to have caught investor’s attention.The approval brings to three the number of dispensaries the company will operate in Maryland as it continues to expand its footprint in crucial cannabis markets

“Through the management agreements with LMS and Green art Maryland, we continue to expand upon our existing presence in Maryland, achieving a milestone that is integral to our overall expansion plans, which include a focus on limited-license markets,” stated W. Scott Boys, Chairman, and CEO.

In addition, the company has signed an agreement with the largest cannabis processing facility in Southern California. Case Farms Collective has since agreed to provide the company with full-scale cannabis processing services.The agreement should go a long way in strengthening MX Bioceutical distribution reach. Case Farms has also agreed to distribute the company’s branded cannabis concentrates through its network of licensed dispensaries in the state.

“Case Farms has the ability to reach more than 100 adult-use licensed dispensaries, which is expected to enable us to leverage California’s recent entry into the adult-use cannabis market and significantly expand the MPX brand […],” said Chief Operating Officer, Beth Savola.

Bottom LineMPX Bioceutical is without a doubt in a phase of rapid growth given the management team’s efforts in expanding the company’s footprint in the burgeoning cannabis marketplace. The stock has started showing signs of breaking out as investors take note of the underlying fundamentals that continue to affirm long-term growth prospects.Any pullbacks going forward should act as good buying opportunities given that the company’s future looks bright at the back of a robust expansion drive.We will be updating our subscribers as soon as we know more. For the latest updates on CNSX:MPX, sign up below!Disclosure: We have no position in CNSX:MPX and have not been compensated for this article.

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