TerrAscend Stock Forecast
Even amidst an industry-wide downturn, there are still a good many marijuana stocks that are bringing in the types of gains that investors dream of. One such stock, TerrAscend Corp (OTCMKTS:TRSSF, CNSX:TER) just came in with a 50% increase in March while other pot stocks simply struggled to stay above water.
In fact, TerrAscend has been one of the strongest marijuana stocks around, with gains of over 500% the past six months!
That makes TerrAscend stock one of the pot stocks worth keeping an eye on, as the company has managed to buck the trend of 2018 and keep the good times rolling.
TerrAscend recently obtained a license from Health Canada to sell dried cannabis via its wholly-owned subsidiary, Solace Health Inc. That was another win for TerrAscend, which helped put it on a path to gains while other marijuana stocks fell.
Chart courtesy of StockCharts.com
The sales license will lead to the launch of the “Solace Health Marketplace,” an e-commerce platform for Canadian patients.
“This licence is an important milestone for the Company that enables us to execute our strategic objectives to deliver both pharmaceutical grade cannabis products and patient support programs,” said Dr. Michael Nashat, TerrAscend’s president and CEO. (Source: “TerrAscend’s Wholly-Owned Subsidiary, Solace Health Inc., Receives Sales Licence to Sell Dried Cannabis,” Cision, March 9, 2018.)
“The granting of our sales licence, together with the recent expansion of our Mississauga, Ontario facility, allows us the opportunity to provide the highest quality products, with a same day delivery option.”
Furthermore, TerrAscend inked a CA$52.5 million subscription agreement in late 2017 with Canopy Growth Corp (OTCMKTS:TWMJF, TSE:WEED) and several other entities, partnering TerrAscend with one of the stronger companies in the industry (and a frequent pick here at Profit Confidential). (Source: “Canopy Growth Announces Strategic Investment in TerrAscend Corp.,” Cision, November 15, 2017.)
TerrAscend has been operating at a loss, but that’s expected of a leaner company that is looking to grow. The company’s most recent quarterly report showed a net loss of about CA$0.04 per share, which the company attributed to increased employee compensation, consulting, and professional fees.
While I’m not always the first one to jump on lesser-known marijuana stocks (it goes against my long-term investment strategies), TerrAscend’s gains have been real and they have been sustained for a long period. A growth of 500% is no joke, and that was just in six months.
The question is whether the company’s best days are still ahead of it, or if that 500% gain means we’ve already seen the best of what TerrAscend stock has to offer.
I’m a cautious optimist when it comes to TerrAscend. I think, as a short-term pick, it will continue to do well throughout the correction in pot stocks that we’re experiencing. I’m not so sure how well the company will perform long-term, however.
But for those looking to freshen up their portfolios with a company which has proven that it has the capability to achieve truly massive gains, TerrAscend stock is by no means a bad option.