OrganiGram Stock Moving to Nasdaq Exchange
It’s here. Long in the making, but we’re finally going to see OrganiGram Holdings Inc (NASDAQ:OGI) hit the Nasdaq on May 21 and begin trading under the symbol “OGI” (until then, it can be found under OTCMKTS:OGRMF, CVE:OGI). (Source: “Organigram to Commence NASDAQ Trading with Symbol OGI on May 21,” New Cannabis Ventures, May 17, 2019.)
This is a huge boon to a stock that I already consider to be one of the best stocks on the market.
You see, the reason I’m so bullish on OGRMF stock (soon to be OGI stock) is that it is one of the few companies that checks almost all the boxes when it comes to top marijuana stocks.
It’s big—valued over $1.1 billion—so big that it has the foundations to withstand market changes, but not too big that one could reasonably consider its glory days behind it.
What I mean by this is that the company is not some micro-cap marijuana penny stock that can rise and fall at a whim. It’s instead a well-tested and strongly formed business that has the fundamentals to withstand downturns, all while being a small enough size that big gains can come quick.
Another thing that OrganiGram Holdings Inc has going for it is that it has long been considered one of the most undervalued marijuana stocks around.
It is one of a few marijuana penny stocks that are on the cusp of making the next step towards becoming a real industry heavyweight. And that step will be very profitable for investors that get in at the right time.
Finally, the company has no major partnerships as of yet. That means that one could be in store in the future. Such a move would see share prices rise dramatically and help put OrganiGram on the path to higher gains.
And those are all the future possibilities. We haven’t even begun to talk about what the Nasdaq OGI stock listing is going to mean for OrganiGram Holdings Inc.
Nasdaq OGI Stock
The Nasdaq has only two other pure-play marijuana stocks trading on its market, Cronos Group Inc (NASDAQ:CRON) and Tilray Inc (NASDAQ:TLRY).
I’ve written about both stocks many times before. Both have had good and bad times on the Nasdaq and tend to experience a higher degree of volatility compared to the shares listed on the New York Stock Exchange.
But the most important consideration here, at least as far as OrganiGram stock is concerned, is how these companies stack up to OrganiGram Holdings Inc. The short answer: they’re not nearly as exciting.
You see, Tilray shares are still hurting from the company’s overly fast rise in the early days following its initial public offering (IPO) on the Nasdaq, the first of its kind.
The excitement that built up around the IPO sent shares soaring, but resulted in the company becoming highly overvalued and now beginning a long descent down.
CRON stock, meanwhile, had a few spikes both up and down, but settled into gains following a huge deal with “Big Tobacco.”
OrganiGram Holdings is better suited than both of those companies to dominate the Nasdaq long-term. Both Tilray and Cronos Group have faced overvaluation accusations for many months. OrganiGram, by contrast, has had the opposite experience.
In fact, this will be the first marijuana penny stock to hit the exchange, filling a much-desired role in the market and allowing investors to feast on a company with a lot more upside compared to Tilray and Cronos.
But therein lies the only real concern I have about OrganiGram Holdings Inc: that it may grow too fast.
I’m hoping that investors learned their lesson from Tilray stock, but if not, we could see the shares balloon exponentially in a short period. I don’t believe that this will happen, but it is a possibility. If that’s the case, OGI stock would quickly shift from a great long-term play into a short-term one.
On the flip side, a more plausible outcome will be that OrganiGram stock will see a tumultuous start with a lot of swings up and down before settling on the Nasdaq into sustainable growth.
The stock might even lose value when it hits the market, but I believe that this loss will be short-lived and sparked by investor skittishness, which would evaporate shortly thereafter. This is one of the more likely outcomes.
But another very likely scenario sees OGI stock gaining strongly once it lists and steadily growing thereafter, punctuated by massive spurts should the company score a partnership or be acquired, as I’ve written about in the past.
Chart courtesy of StockCharts.com
OrganiGram Stock Could Double in 2020
I think that given its current position as a borderline industry giant (which is really exciting, considering its price), OrganiGram stock could easily double within the next 12 to 18 months. In fact, a high-end projection would see it gaining somewhere in the vicinity of 150%.
My low-end projection would be around 50% in the next year, which is still a fantastic return.
The only caveat here is if the company sees overly fast growth when it hits the Nasdaq like with Tilray. Barring that, I see share prices growing for years.
And even if the company does see huge growth following the Nasdaq listing, investors who have been following my columns will see huge returns and can easily check out with triple-digit gains when all is said and done—not too shabby.
OGRMF stock has already gained nearly four percent since the company announced the date of its Nasdaq listing.
Right now, OGI stock is one of the more exciting plays available.
The marijuana industry is full of great stock picks, but few are as exciting to me as OrganiGram stock.
While there is certainly some degree of risk, as there is with all companies, OGI stock has everything it takes to be a strong performer for years to come, with huge potential for an immediate spike in gains in the coming days and weeks.