In the last week, Auxly stock has climbed over 15%. The small-cap cannabis royalty and cultivation company had a roller coaster year thus far; at the best of times it breached $1 per share; at the worst, it fell below $0.71 cents per share (prices in CAD).
Now, this stock is climbing once again and currently sits at $0.82 CAD on the TSXV. Auxly Cannabis Group (TSXV:XLY) (OTCQX:CBWTF)—the polarizing company that has confused so many—might finally be winning investors around.
Auxly Stock is a Waiting Game
Patience is key with Auxly Cannabis Group. From its older business model, the company has royalty deals in place with over a dozen cultivators and, along with its own cultivating venture, is likely to report far greater revenue figures in the year to come.
This is because Auxly is expecting to yield over 170,000 kilos annually. In fact, management has guided investors that sales should rise to almost $186 million CAD next year. If this is the case, Auxly will be the fastest-growing cannabis stock in comparison to its paltry full-year 2019 sales.
But it is a waiting game. Next year, most of Auxly's licensed partners will finally be online and delivering product. Until that happens, it's hard to know if Auxly stock is a worthy investment or not. It's also hard to know if management's sales predictions will amount to more than just that; predictions.
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But throwing caution to the wind, if all of Auxly Cannabis Group's licensed partners do come online, then Auxly should easily place in the top ten producers in terms of production capacity. For its small size of $485.97 million, that is a remarkable feat.
Auxly Stock, An Honest Business
The company has made a host of strategic moves in the past year, and most recently announced the appointment of Andrew MacMillan as the Vice President of Commercial Business Development.
MacMillan had previously been the Chief Executive Officer at PEI Liquor Control Commission, a regulatory body which, through its subsidiary, Cannabis Management Corporation, regulates the sale of cannabis. As such, he brings with him extensive industry experience and, importantly, a moral compass that investors always like.
Auxly Cannabis Group has a lot of potential yet to be realized, so if you enjoy speculative stocks and the riskier low-priced ones, then this company may be for you. As InvestorPlace says well:
"On a year-to-date basis, shares are down an alarming 55%-plus. But on the other hand, if you’re looking for a company whose low-hanging fruit hasn’t been plucked, this is it."
What are your thoughts on Auxly stock?
Featured Image: Canva
