A stock that could be warming up for a fresh breakout this week is CRESCO LABS ORD (OTCMKTS:CRLBF). Shares have been cornering in on new potential highs, and the catalyst that could help spark that move just hit the wires in the form of very strong data. To wit: The company just announced strong unaudited financial results for the fourth quarter and full year ended December 31, 2018. While the “unaudited” part is a limitation, the numbers paint a compelling picture.
According to the release, the company posted Q4 revenue of $17.0 million, up 411% year-over-year and 33% quarter-over-quarter, full-year revenue of $43.3 million, up 294% from the prior year, Q4 pro forma revenue of $22.5 million, and full-year pro forma revenue of $75.6 million.
CRESCO LABS ORD (OTCMKTS:CRLBF) trumpets itself as a company that manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products.
The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand.
In addition, it operators a Hope Heal Health dispensary in Fall River, Bristol County, Massachusetts.
The company was formerly known as Cresco Labs, LLC and changed its name to Cresco Labs Inc. in November 2018. Cresco Labs Inc. is headquartered in Chicago, Illinois.
According to the release, “Cresco Labs, based in Chicago, is a leading U.S. cannabis company with experienced management, access to capital and a demonstrated growth strategy. As a differentiated grower, processor and retailer of premium cannabis operating in ten states, the company focuses on entering highly regulated markets with outsized demand potential and high barriers to entry. Its impressive speed-to-market gives Cresco a distinct competitive advantage as it replicates its model to expand its national footprint. Cresco’s proven ability to execute is complemented by a cutting-edge brand strategy spearheaded by several of the brightest minds in consumer marketing in the nation. Cresco’s products are tailored to all major consumer segments: everyday cannabis, medicinally focused, connoisseur grade, and chef inspired edibles by James Beard Award-winning pastry chef Mindy Segal. Learn more about Cresco Labs at crescolabs.com.”
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As noted above, CRLBF just announced strong unaudited financial results for the fourth quarter and full year ended December 31, 2018.
We’ve witnessed 20% during the past month in terms of shareholder gains in the stock. Furthermore, the name has registered increased average transaction volume recently, with the past month seeing 48% over what the stock has registered over the longer term.
“We completed 2018 with another quarter of positive pre-tax income that reflected continued strong execution across all areas of our operations,” said Charles Bachtell, Co-founder and CEO of Cresco Labs. “We continue to successfully enter new markets with beneficial regulatory structures, increase our production and processing capacity, and expand the distribution for our unique and sophisticated ‘house of brands.’ Our ability to offer compelling products to all major segments of the cannabis market and achieve high levels of market penetration is generating strong growth in revenue and significant improvement in our gross margin.”
At this time, carrying a capital value in the market of $1.86B, CRLBF has cash and cash equivalents of $131.3 million and a working capital position of $172.7 million with zero debt on the balance sheet. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $CRLBF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CRLBF, either long or short, and we have not been compensated for this article.