Namaste Stock Consolidating Over Past Few Weeks: What Next?

Namaste stock

Namaste stock has been moving within a narrow range over the past week despite several developments. Let’s analyze Namaste Technologies’ (TSXV:N) (OTCQB:NXTTF) performance this year.

Namaste Technologies is one of the more interesting companies in the cannabis industry since it is involved in developing and selling e-commerce solutions specifically meant for the industry. The company’s business is certainly appealing, and in fact, the stock performed impressively last year as Namaste became the most valued cannabis stock.

As a matter of fact, the stock surged substantially and remained the best performer in the cannabis segment last month. However, there have been some galling issues that have weighed down on the company and the stock.

Quarterly Results

One of the biggest setbacks for the company was losing its Chief Executive Officer earlier in 2019 after he neglected to inform that he had sold an asset to another executive at Namaste.

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NXTTF stock is trading lower by 3% at $0.56 on the OTC market. On the Canadian side, Namaste stock is down 2.60% and now selling at $0.75.

Recently, Namaste Technologies published its results for the quarter that ended in February. The company’s sales dipped substantially in the quarter, and although there were some bright spots, it was not enough to offset the blow to the bottom line. The company’s telemedicine arm, Namaste MD, contributed $104,000 CAD to its revenue, and the acquisition of the artificial intelligence company Findify also helped with an additional $266,000 CAD in revenue.

That being said, the headline figures were poor and alarmingly so. Sales from the company’s flagship Namaste vapes segment plunged by $1.3 million CAD and stood at $3 million. In this regard, it is important to note that the drop is attributed to Namaste’s decision to divest from its United States business.

The company’s Australian revenue dropped by 4% year-on-year and came in at $1.3 million CAD. Namaste Technologies has stated that the drop in Australian revenue is due to currency fluctuations. Lower revenues led to lower profits, but the company’s expenses soared as well. Expenses went up from $5.5 million CAD last year to $11.8 million CAD this year.

Namaste stock has corrected 55% from its January peak price of $1.25. Moreover, the stock is down almost 78% from its 52-week high of $3.05.

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