Why Green Thumb Industries Inc (OTCMKTS:GTBIF) Faces a Critical Decision Point

Why Green Thumb Industries Inc (OTCMKTS:GTBIF) Faces a Critical Decision Point


Shares of Green Thumb Industries Inc (OTCMKTS:GTBIF) have been pulling back after a productive first quarter of 2019, with a critical test of the stock’s 200-day simple moving average now in play as we enter this week. That level comes at a rough confluence with range support as designated by the early March lows in the vicinity of the $12.50 area. The big point here is that we saw a clear bid step in at the level, and the overall bull case been preserved by the presence of this dominant bid, which points to a base case, as a technician might postulate, for a continued ascent, until that support level has been beaten.

To make matters more interesting, the company just announced that Rise Amherst will begin selling cannabis to adults aged 21 and over on May 12, 2019. According to the release, the store will continue to offer exceptional care to medical cannabis patients with a separate consultation space, retail floor, checkout area and exit for people with a valid Commonwealth of Massachusetts medical card.

Green Thumb Industries Inc (OTCMKTS:GTBIF) bills itself as a company that manufactures and sells various cannabis products in the United States. The company’s cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals.

The company markets its products through third-party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name. The company was founded in 2014 and is headquartered in Chicago, Illinois.

According to company materials, “Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE(TM) dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven highly regulated U.S. markets. Established in 2014, GTI employs more than 350 people and serves hundreds of thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business.”

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As noted above, GTBIF just announced that Rise Amherst will begin selling cannabis to adults aged 21 and over on May 12, 2019.

The stock has suffered a bit of late, with shares of GTBIF taking a hit in recent action, down about -5% over the past week. Moreover, the stock has seen interest climb, with an increase in recent trading volume of 21% over what the stock has registered over the longer term.

“GTI’s mission is to empower the right to wellness by progressing the responsible adult use of cannabis through innovative branded products and people-first retail experiences while remaining committed to the community,” said GTI Founder and CEO Ben Kovler. “We’re thrilled to be able to serve the people of Amherst, where we’ve been part of the community for nearly a year.”

At this time, carrying a capital value in the market of $2.48B, GTBIF has about $112M in cash on the books, which stands against about $9.3M in total current liabilities. The company has pulled in about $14M in revenues on a TTM basis. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $GTBIF 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 $GTBIF, either long or short, and we have not been compensated for this article.

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