Why is MariMed Inc. a Great Penny Hemp Stock Investment Opportunity?
Our review of MariMed Inc. has resulted in a strong buy rating for the company’s stock. Why is MariMed Inc. a Great Penny Hemp Stock Investment Opportunity?
MariMed Inc. MRMD (OTC) is one of the largest multi-state marijuana companies in the United States. It manages more than 300,000 square feet of facilities and holds 13 licenses for cannabis cultivation, production, and dispensaries. The medical cannabis and hemp products that are produced by MariMed are made to treat specific medical conditions with precise dosages.
What is on the horizon for MariMed Inc.?
- Extend geographic reach through direct ownership of cannabis licenses and related seed-to-sale operations in the US and internationally.
- Expand presence in a new hemp-derived CBD market with premium materials and products.
- Enhance Marketing and customer education of products, benefits, and changing modalities.
- Continue to provide the best in class development, management, and operational advisory to approved facilities nationwide.
- Enter ancillary services at the top and bottom of supply chains, including seeds, branded products, and e-commerce retail.
- Advance field of research to legitimize and strengthen go-to-market reach.
Why is MariMed Inc. a Great Penny Hemp Stock Investment Opportunity?
1. Discount Supply Agreements: The company entered into a discount supply agreement for large volumes of cannabis ordered. MariMed has partnerships that have been established with multiple vendors and this will play a strong role in the re-sale of cannabis to come. After the company receives the discounted supply of cannabis it ordered from national vendors, it will then later be sold to cannabis clients at a markup for a profit. However, the company will remain competitive in order to sell its cannabis that it acquired at a discount, so, the prices set on its cannabis won’t stop it from being sold any time soon.
2. Leaps in Generated Revenues: In 2017, MariMed was able to dramatically increase its revenue from consulting, licensing, management, real estate, and supply procurement operations. The increase in generated revenues was from $6.1 million to 11.9 million and represented a 95.3% increase. A main source of the revenue growth came from the rental income that it generates from facilities in Massachusetts and Maryland. The company leases out several facilities in each state and generates a sizeable amount of income from the rent on those properties. Another contributor to the increase in revenue came from its supply procurement services that it performs for licensed cannabis clients and management fees.
3. First Cannabis Harvest: MariMed announced through a press release exactly a week ago that it had successfully started to harvest the first cannabis crop cultivated by the company. The company’s first cannabis harvest is at its state-of-the-art cultivation and production facility in New Bedford, Massachusetts. It is estimated that the production yield for the facility per month will increase to approximately 1,000 pounds per month. The cannabis included in the 1,000 per month includes high-grade cannabis of some of the most desired strains of cannabis. MariMed’s harvest couldn’t come at a better time as the state is experiencing a state-wide dried cannabis flower shortage. Massachusetts has over 60,000 registered medical cannabis patients and a recreational cannabis market estimated to exceed $2 billion annually by 2023 and medical cannabis market estimated to reach $125 million annually by 2023 as well.
Why do we recommend MariMed as a strong penny hemp stock for 2020?
MariMed is a strong company that has been able to shift its focus and main operation to a different side of the cannabis industry: Seed to sale operator via acquisitions and consolidation. The company originally began as a consultant management firm and now is in the works of licensing its own cannabis-infused and hemp-infused products for the medical cannabis markets. These products treat specific medical conditions and are often the necessary alternative for patients to use instead of opioids.
The company also will now regularly cultivate cannabis at its New Bedford production facility to the tune of 1,000 pounds per month. This will be a huge leap for the company as it hadn’t completed a harvest before and relied on discounted supply agreements.
For these reasons, we consider an investment made into MariMed at or close to its current price of $0.19 per share as a good cannabis stock investment opportunity for 2020. The company is more than on its way to completion of 300,000 sq. ft. of space for many different departments and will be able to cultivate, produce, and distribute a higher quantity of its high-quality products.
See our full analysis of MariMed here.
Why is MariMed Inc. a Great Penny Hemp Stock Investment Opportunity?
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