By Jim Bloom Posted on May 20, 2019
MedMen Enterprises Inc (OTCMKTS: MMNFF) poor run in the market is a point of concern as short sellers remain firmly in control. The stock has shed more than 60% in market value from record highs registered in October of last year.
MedMen Enterprises Price Analysis
The stock has continued to edge lower even on the Company achieving significant milestones in pursuit of growth opportunities in the U.S Cannabis market. For starters, the Company is fresh from opening its 11th store in California in the quest of a piece of the $11 billion cannabis market.
The Company has also secured a $250 million secured convertible credit facility, consequently gaining access to much-needed financing for pursuing strategic investments. Impressive preliminary financial results for the fiscal third quarter also underscores a company firing on all cylinders when it comes to operational efficiency.
It thus comes as a surprise that the stock has continued to edge lower at a time when the cannabis sector is trending higher. The stock has since clocked a new all-time low on plunging to the $2.35 handle.
A breach of the $2.70 support level has left the stock susceptible to further drops, in continuation of the emerging bear trend. A bounce back above the $2.70 level is what is needed to avert further slides in the short term, for the stock to turn bullish and emerge as a break out play it will have to take out the $3.60 resistance level.
What Does MedMen Enterprises Do?
MedMen Enterprises is a cannabis-focused company that cultivates, produces, and distributes recreational and medicinal cannabis. The Company boasts one of the largest retail networks in the sector, having