Happy 420 Day! Buy This Top Pot Stock Now to Celebrate Later.

top pot stock - Happy 420 Day! Buy This Top Pot Stock Now to Celebrate Later.

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The cannabis sector, which has been responsible for therapeutic and recreational highs across millenniums, have contributed to devastating lows for many investors. Truth be told, that goes for Canada’s OrganiGram (NASDAQ:OGI), which is quite possibly the best pot stock to pick up now for long-term gains. True, OGI is down over 8% year-to-date and is even negative against the trailing five years. Still, it has plenty of speculative punch.

For one thing, the technical setup is rather compelling. Since hitting a few pennies above a buck in October 2020, OGI stock has kept above this critical level. That is despite the geopolitical turmoil of Russia’s unsettling decision to invade Ukraine, the residual impact of the coronavirus pandemic and stifling inflation that has pressured consumer sentiment worldwide. On resilience alone, it is an excellent candidate for top pot stock.

Even more encouraging, if you broaden the horizon to OrganiGram’s “lifetime” chart, you’ll notice that the rock-bottom price of OGI stock is around 18 cents. Therefore, the security is charting a series of rising lows. Finally, on the technical angle, between December 2017 and October 2019, OGI printed a bearish broadening wedge pattern. Now that the negative implications have likely been fleshed out, the cannabis firm could possibly build back better.

Speaking of which, domestic cannabis firms are eyeballing a potential landmark federal legalization of marijuana. There is reason to be hopeful considering that the House recently passed legislation for legalizing the much-maligned plant nationwide. Still, if the bill gets caught up in the Senate, speculative investors will still have a reason for banking on OGI as a top pot stock.

Mainly, this narrative boils down to the encouraging fundamentals. While growth potential for the sector has largely avoided criticism, it’s the profitability — or lack thereof — that has drawn much criticism. Historically, OrganiGram hasn’t been the best performer in this regard.

On a trailing-12-month basis, the company has a loss of $28 million due to sharp reductions in selling and general and administrative expenses. Nevertheless, it has also grown top-line sales to $85.7 million during the same period, comparing favorably to fiscal 2021’s tally of $63 million.

Given that the business has become a leaner, meaner machine and that investors are slowly recognizing its upside potential, OGI could very well be the best pot stock that will have you patting yourself on the back on this happy 420 day.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

Article printed from InvestorPlace Media, https://investorplace.com/2022/04/happy-420-day-buy-this-top-pot-stock-now-celebrate-later/.

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