Shares of Northsight Capital Inc (OTCMKTS:NCAP) have started picking up some steam, on the announcement the company has inked a groundbreaking cannabis oil, distribution deal. The upward momentum has gathered pace after a long period of consolidation at all-time lows.
Share Price Analysis
A 70% plus spike from all-time lows could as well underscore renewed investor interest in a company that investors remained skeptical about long-term prospects. Northsight Capital is trying to make a comeback after imploding in 2018. The stock shed more than 80% in market value, in one of the worst and longest routs in the market.Fast forward, market sentiments have improved on the company reiterating its prospects in the burgeoning sector. However, the stock faces an uphill task to turn bullish after a long period of underperformance. For starters, it first needs to rise and stabilize above the $0.02 mark to attract solid interest in the cannabis sector. NCAP Daily ChartAbove the $0.02 mark, the stock would stand a better chance of making a run for the $0.04 mark, seen as a critical resistance level. A rally followed by a close above the $0.04 mark, should open the door for the stock to turn bullish on its way to 52-week highs of $0.055.Below the $0.02 mark, Northsight Capital remains in a precarious position, given the underlying bear trend. Short sellers remain in firm control below the critical resistance level.
What Does Northsight Capital Do?
Northsight Capital boasts of a range of online directories focused on a variety of businesses, mostly in the sale and distribution of cannabis and hemp related products. The company generates most of its revenues from monthly listing and paid advertisements on the platforms. It also makes money from leasing some of its internet domain names to customers.
CBD Oil Brands Deal
Northsight Capital has started edging higher on the confirmation that the company has signed an agreement for the distribution of three exclusive CBD oil brands. As a master supplier, the company is to start shipping three CBD lines, which include SeniorsCBD, LiquidMD, and CBD infused water in March.Distribution will be through the company’s extensive online media sites as well as through independent sales and distribution agents. The agreement builds on a similar deal that the company reached with an exclusive distributor for SeniorsCBD late last year.Northsight Capital has set sights on seniors eyeing cannabis products for various ailments and conditions. In Colorado, for instance, people above 50 years make up about 36% of patients in the medical marijuana registry.
“Seniors are currently considered to be the primary purchasers of CBD, in many instances using CBD to replace their dependence on opioids and other pain medication. The company plans to launch its first CBD products in early 2019 and is in discussions with sub-distributors,” Northsight Capital in a statement.
Website Improvement
Distribution of cannabis oils is not the only channel that the company is relying on, in pursuit of revenue opportunities. The company has enhanced its career website 420Careers after an initial launch in 2010. The enhancement seeks to make the site, a leading career site in the cannabis space.Northsight Capital has since added more user-friendly features in a bid to make it easier for job seekers to post their resume. The site also comes with a retargeting feature that allows businesses and interested parties to determine the geographic location of people visiting the website.
“Businesses servicing the Cannabis industry currently face many regulatory hurdles as well as increased competition. State laws require dispensaries to keep their marketing efforts within their state's borders and within the age limit for sale of their products to minors. Retargeting eliminates that problem,” Northsight Capital in a statement.
Bottom Line
While Northsight Capital has shown signs of bottoming out from all-time lows, it still faces an uphill task to turn bullish. A long period of consolidation at all-time lows means only groundbreaking developments will trigger further movements on the upside.With the CBD oil distribution agreement already priced in, the company needs to serve new catalysts for it to continue powering higher after the recent bounce back.We will be updating our subscribers as soon as we know more. For the latest updates on NCAP, sign up below!Disclosure: We have no position in NCAP and have not been compensated for this article.
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