By Jim Bloom Posted on March 22, 2019
Curaleaf Holdings Inc (OTCMKTS: CURLF) is bringing the heat on having embarked on an aggressive expansion drive. Completion of two strategic acquisitions underscores the company’s push for inorganic growth as it expands into some of the fastest growing cannabis markets.
CURLF Share Price Analysis
The stock also continues to register impressive gains in the market as investors take note of the company’s growing revenue base. Curaleaf is fresh from reporting a 407% increase in revenues, in the recent quarter.
The company projecting managed revenue of $400 million and free cash flow of $100 million, for 2019, affirms the love it continues to receive in the market. Robust revenue growth attests to a company that is in a phase of robust growth.
However, the company must work on its margins if it is to command a high valuation. A wider than expected net loss in the recent quarter is something that could continue to weigh down, the stock’s sentiments.
The stock rallying by more than 40% underscores strengthening investor confidence given that it did succumb to short selling pressure last year. In the meantime, the stock is trading in an uptrend, pullbacks having emerged as buy opportunities.
The $6.40 mark is a mid-term support level above which Curaleaf remains well supported and positioned to continue flying high. On the upside, the $8 mark is a critical resistance level that stock needs to close above, to turn bullish as a long-term play.
Conversely, a breach of the $6.40 support could leave the stock susceptible to further drops in continuation of the long-term downtrend. Improving fundamentals support further upside action on pullbacks.
What Does Curaleaf Do?