Based in Alberta, High Tide Inc. (CSE:HITI) (OTCQB:HITIF) is a vertically-integrated, downstream cannabis company. With 10 years of operational experience and six businesses under its belt, High Tide has become a leading cannabis enterprise with global operations.
Due to a recently secured $10 million credit facility, the company's stock has been burning up the markets. In the first week after the credit facility was announced, HITI shares grew from $0.16 to $0.24. That's a 50% jump in value.
Now, High Tide Inc. has again received a "BUY" rating, indicating that this stock still has a lot of value for potential investors.
Moving Averages Indicate High Tide is a BUY
TradingView’s Technical Analysis has returned a “BUY” recommendation for High Tide Inc. (CSE:HITI) (OTCQB:HITIF).
This analysis gauges real-time ratings for a variety of timeframes and is based on several popular technical indicators. These include moving averages, oscillators, and pivots.
The "BUY" recommendation is led by nine positive moving averages in the 20- to 100-day range.
After the 50% jump, HITI dipped slightly this week to $0.22. This presents pot stock watchers and proponents of High Tide's business model with a buying opportunity.
The stock's 52-week high is $0.58, which it hit in mid-February 2019. If HITI could return to this height, that would represent a 163.64% increase from its current price.
While no one can be certain about a stock prediction, there's plenty of reason to believe that High Tide's (CSE:HITI) (OTCQB:HITIF) best days are still ahead.
High Tide Inc. is Establishing Itself as a Retail Cannabis Leader
High Tide began in 2009 as an independent smoke shop called Smoker’s Corner that catered to cannabis enthusiasts located in Western Canada.
The company has come a long way since then, expanding its retail presence across the globe and growing its portfolio of brands. High Tide accessories are now sold in 3,000 stores in over 20 countries worldwide.
As of November, High Tide Inc. owns 30 retail locations across Canada. Of these, 26 are in Alberta, one is in Saskatchewan, and three are in Ontario.
The company announced that the $10 million will fund the acquisition and build-out of additional retail cannabis stores in Alberta and Ontario. This is a smart choice, as Ontario is not only the largest market in Canada, but also because, in December, the province officially opted to open up its cannabis retail market.
Another element that gives High Tide an edge is its backers. In February 2019, Aurora Cannabis (TSX:ACB) (NYSE:ACB) invested $10 million into the company and made its largest accessories purchase order to date.
Then, in April of last year, Aphria Inc. (TSX:APHA) (NYSE:APHA) anchored the Company’s non-brokered private placement with a $4.5 million order.
These orders reinforce the fact that High Tide Inc. (CSE:HITI) (OTCQB:HITIF) is a cornerstone of the cannabis retail market.
Keep watching this space for more updates about High Tide.
Featured image: Canva
