Namaste Stock Bounces Back from Lows on Value Buying in the Sector

Namaste stock

Namaste stock has been recovering this week as the broader cannabis sector is bouncing back from the recent slump. Let's analyze the recent developments from Namaste Technologies (TSXV:N) (OTCQB:NXTTF).

About Namaste Technologies

The cannabis industry may be relatively new, but an ecosystem has already developed that should see the industry grow further in the years to come. In that regard, cannabis e-commerce company Namaste Technologies could eventually become an integral part of that ecosystem.

That being said, like many other cannabis stocks, Namaste stock has had a bad year and plunged by as much as 65% so far.

There are certain factors that need to be considered here. In Q3 2019, the company generated $3.8 million in revenue, which is lower than the $3.9 million it generated in the prior-year period. That being said, the gross margins improved from 24% to 26% in the same period. Namaste Technologies concluded the period with positive working capital to the tune of $54.2 million.

At the time of writing, Namaste stock is up 5% at $0.365.

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In the same quarter, the company was also successful in getting a Health Canada amendment that will allow CannMart to offer cannabis-derived oil concentrated in the online marketplace. Moreover, the arrival of derivatives in December could prove to be another huge boost for Namaste Technologies as a slew of new products hit the market.

This month, Namaste Technologies made another announcement that should be considered as positive by Namaste stock investors. The company announced that its wholly-owned subsidiary CannMart has managed to sign supply agreements with the governments of Saskatchewan and Ontario. By way of the agreement, the firm's product will automatically become a part of the supply chain of products to those two provinces.

CannMart is one of the largest online cannabis marketplaces in the world, and the new agreements will further boost the company’s presence in Canada. The company’s Chief Executive Officer stated that directly working with the provincial governments helps the company to secure an important market opportunity.

Namaste stock has bounced back about 15% over the past two trading sessions.

>> Read More Namaste News

Featured image: Canva

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