LHSIF Stock Forecast: Why Liberty Health Sciences Is Going Crazy Right Now

Liberty Health Sciences Inc
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LHSIF Stock Forecast

In today’s market, marijuana stocks are all the rage, and it’s not unusual to see double-digit moves in a single trading session.

On October 1, Liberty Health Sciences Inc (OTCMKTS:LHSIF, CNSX:LHS) surged by 12.3%, but some of those gains have been pared since then.

For those looking for the latest LHSIF stock forecast, here’s what we know so far.

Liberty Health Sciences is a legal cannabis provider. While the company is based north of the border in Toronto, Ontario, Canada, its main operations are in Florida. To put things in perspective, the Sunshine State currently represents around 14% of the U.S. medical cannabis market, with a total estimated market size at maturity of over $1.1 billion.

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Like many marijuana companies, Liberty Health Sciences is a relatively new name to investors. After a reverse takeover in July 2017, Liberty Health Sciences stock began trading on the Canadian Securities Exchange (CSE) under the symbol “LHS.” American investors can also purchase its shares over the counter under the ticker “LHSIF.”

Strong LHSIF Financials

One of the main factors behind Liberty Health Sciences Inc’s soaring share price in recent weeks is the company’s solid financial performance.

On September 6, Liberty Health Sciences announced that, in the three-month period ended August 31, the company’s revenue grew 95% from the previous quarter to $2.2 million. This marked the fastest sequential revenue growth in the company’s history. (Source: “Liberty Health Sciences Experiences Significant Growth in Florida Market, Largest Revenue Increase in Company History,” Liberty Health Sciences Inc, September 6, 2018.)

Also worth noting is the increase in the company’s patient count. At the end of May, Liberty Health Sciences had 4,600 patients. Three months later, that number had more than doubled to nearly 10,000.

Right now, Liberty Health Sciences operates four dispensaries and six delivery hubs. The company has also signed new leases for dispensaries, which are in various stages of construction and the permit process.

Furthermore, while Liberty Health Sciences has focused on the Florida market, management says they are planning to expand within and beyond that state.

More Catalysts for Liberty Health Sciences Stock

Mind you, improving financials was not the only reason behind the rally in LHSIF stock.

On the same day of its earnings report, the company announced that it had received approval from the Florida Department of Health to implement the state’s first online patient management system.

The system, called FlorPass, will help connect eligible patients in Florida with physicians and medical marijuana retailers. (Source: “Liberty Health Sciences Gets Approval to Implement FlorPass to Help Supply Cannabis to Patients in Florida,” Liberty Health Sciences Inc, September 5, 2018.)

Less than a week later, the company announced that it had become the first brand partner for PAX Labs, Inc.‘s “Pax Era” vaporizers in Florida. Pax Era vaporizers stand out because they can connect to smartphones and help patients track their dosages. (Source: “Liberty Health Sciences Signs Agreement as First State Partner to Bring the Award-Winning Pax Era to the Florida Market,” Liberty Health Sciences Inc, September 10, 2018.)

Then, on September 13, Liberty Health announced that it is partnering with AdaViv Inc., a hardware-enabled, predictive agriculture company. The AdaViv partnership is expected to increase Liberty Health’s crop output. (Source: “Liberty Health Sciences Enters Exclusive Partnership with Adaviv to Develop New AI-Driven Analytics for Increased Crop Output,” Liberty Health Sciences Inc, September 13, 2018.)

Looking a bit further back, you’ll see that Liberty Health Sciences has already been boosting its production capacity. Earlier this year, the company acquired all of the issued and outstanding shares of 242 Cannabis, LLC.

The 242 Cannabis acquisition gave Liberty Health Sciences a 387-acre parcel of land in Gainesville, Florida. That property included more than 200,000 square feet of greenhouses, head houses, tissue culture labs, and processing facilities. (Source: “Liberty Health Sciences Announces Definitive Agreement for the Acquisition of a 387-Acre Parcel of Land in Gainesville, Florid[a],” Liberty Health Sciences Inc, January 31, 2018.)

Liberty Health Sciences Stock Chart

The cannabis industry is firing on all cylinders, and Liberty Health Sciences’ tremendous growth serves as the latest sign of strength.

Seeing the company’s expanding business, investors have been willing to reward it with a higher share price. Over the past six months, LHSIF stock has soared by 68%.

Chart courtesy of StockCharts.com

Analyst Take

As is the case with many high-flying stocks, it’s possible for LHSIF stock to experience some pullback after a strong rally—like what happened on Tuesday morning.

But given the company’s expanding business and solid financials, the best could be yet to come for Liberty Health Sciences stock.