TILT Holdings Inc (OTCMKTS:SVVTF) is an ideal pullback play, after a minor correction from record highs of $3 a share. The upward momentum has once again started to gather pace, in line with improving fundamentals that affirm the company’s growth prospects.
Catalysts And Share Price Analysis
Stellar financial results for 2018, depicted by revenue and margins growth is one of the catalysts fuelling the upward momentum. The acquisition of the Standard Farms also continues to affirm the company’s multi-state strategy as the company continues to strengthen its cannabis cultivation capacity.
Early in the year, the company also confirmed the acquisition of Blackbird Holdings Corp as part of an aggressive acquisition drive, in pursuit of inorganic growth. The company also strengthened its consumer market opportunity with the acquisition of Jupiter Research.
The acquisition drive has gone a long way in strengthening Tilt Holdings market sentiments. As it stands, the stock looks set to continue powering high especially after a minor correction from record highs.
After bottoming out from the $2.20 mark, Tilt Holdings looks set to make a run for the $3 a share mark, which happens to be the immediate resistance level. A rally followed by a close above the resistance level should affirm the long-term uptrend, setting the stage for the stock to continue edging higher.
Conversely, Tilt Holdings faces immediate support at the $2.20 level on any sell-offs. A breach of the support level could leave the stock susceptible to further declines probably back to the $1.40 mark.
About Tilt Holdings
Tilt Holdings casts itself as vertically integrated technology and Infrastructure Company. The company is engaged in the production and distribution of various products in the cannabis industry. It also maintains two divisions of technology for software and services as well as infrastructure for cannabis products and devices.
Tilt Holdings has skyrocketed to all-time highs in response to a robust acquisition drive that has once again affirmed the company’s growth prospects. Since the start of the year, the company has completed three crucial acquisitions that continue to strengthen its growth metrics in the multi-billion industry.
Jupiter Research acquisition kick-started the acquisition drive early in the year. With the acquisition, the company gains access to a leading inhalation and vaporization technology company. It also broadens the company’s product offerings. The $210 million acquisition should also bolster Tilt Holdings hardware offerings given that Jupiter Research is one of the largest companies in the cannabis industry, having booked $105 million orders last year.
“At TILT, we’re focused on building a company that provides services and technology to cannabis companies at all stages. We’re strongly positioned at the center of the cannabis ecosystem, and Jupiter’s team will add strong consumer expertise to our portfolio,” said Alex Coleman, Chief Executive Officer of TILT Holdings.
Tilt Holdings followed Jupiter Research acquisition with Blackbird Holdings acquisition. The acquisition is poised to strengthen the company’s logistics operations and software solutions, in the cannabis sector. It should also support Tilt’s expansion of offerings, to both cannabis business owners and customers.
The acquisition of Standard Farms LLC is another major coup for Tilt Holdings. The purchase is poised to expand the company’s infrastructure platform, in addition to providing access to 13 million additional customers. Standard Farms should also strengthen Tilt’s product lines given that its products are currently in circulation in 95% of Pennsylvania dispensaries.
“Having now completed this transaction, TILT is able to focus on the consumer in new markets such as Pennsylvania through B2C offerings where we already have a B2B presence,” Mr. Coleman in a statement.
The acquisition drive comes at a time when Tilt is enjoying one of the finest runs when it comes to revenue generation. The company is fresh from announcing pro-forma gross revenues of $18.3 million for January, having generated $97.3 million in 2018.
What Next For Tilt Holdings
Tilt Holdings is one of the top U.S revenue producing companies. Robust revenue growth looks set to persist in 2019, given the acquisitions the company has so far completed as it continues to expand its footprint in the industry.
For early movers eyeing opportunities in the cannabis sector, Tilt Holdings is an ideal play if the acquisitions carried out so far is anything to go by. The stock looks set to continue powering higher as the company continues to expand its footprint in the multi-billion-dollar cannabis industry.
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Disclosure: We have no position in SVVTF and have not been compensated for this article.