Emblem Corp Stock Jumps Following Supplier Deal
April is turning out to be a nice change of pace for the marijuana industry in 2018. Aside from the good political tidings that the sector received earlier in the month, we’re now seeing companies make moves to keep that wave swelling. One such company is Emblem Corp (OTCMKTS:EMMBF, CVE:EMC). Following the announcement of the company’s deal with cannabis retailer Fire and Flower, Emblem Corp stock has been on a tear.
The deal will see Emblem supply Fire and Flower with branded cannabis products for three years, with these products being sold in-store in all the provinces where Fire and Flower operates.
“The retail environment will be critical to generating brand awareness, educating the consumer about products and ultimately driving market share for our adult-use brands,” Nick Dean, CEO of Emblem, said in a statement.
“Today’s deal with Fire & Flower reinforces our belief that the greatest shareholder value will be achieved in the long-run via channels that give the greatest access to consumers. As Fire & Flower is building a leading retail concept in the cannabis space, we anticipate that this arrangement will assist us in our single-minded focus on driving shareholder value.” (Source: “Emblem Signs 3-Year Supplier Agreement with Fire & Flower,” Emblem Corp, April 11, 2018.)
Emblem stock has the benefit of already being approved under ACMPR (Access to Cannabis for Medical Purposes Regulations).
Since the announcement was first made, we’ve seen the stock shoot upwards by 17%, a very impressive gain for about a week of trading.
Chart courtesy of StockCharts.com
The company has timed this announcement well, taking advantage not only of the accomplishment of the deal but also of the strong political news coming out of the U.S. that has bolstered the marijuana industry and once more opened investors to putting money back into pot stocks. Even if Emblem doesn’t have a presence in the U.S. marijuana market, the news was enough to lift the entire industry due to its bearings on the future of the marijuana industry.
Emblem Corp stock now needs to keep the good times rolling, continuing to build momentum moving forward. After all, with so many other stocks gaining value over the past week, it needs to find ways to continue to differentiate itself.
It’s also worth noting that Emblem Corp stock is a marijuana penny stock with a lot of upside.
The company is trading at about $1.24 as of the writing of this piece. That makes it a riskier overall play due to increased volatility, but that also means that its gains will likely come faster and reach higher peaks in a shorter amount of time.
Bottom line: Emblem stock is shooting up on the back of both good news coming out of its own camp and the strong political developments in the U.S. If you’re in search of a short-term marijuana play or are not against a more volatile long-term stock pick, then Emblem Corp stock may be for you.
It’s still too soon to proclaim the marijuana downturn over, but we’ve seen promising signs so far in 2018.
While Emblem stock represents one of the stronger performers on the market over the past few days, it’s by no means the only pick—or even best. But it is a very good one for those looking to make a strong short-term move, and has a high upside for investors looking to play the long game.
The most important thing for marijuana bulls, however, is to see if this string of gains we’ve seen in April can sustain. So long as we don’t see another major drawback in the next few weeks, even if gains are muted, it will be safe to say that the marijuana correction is over. If that’s the case, then April may be the best time to buy marijuana stocks in 2018.