Namaste Stock Well Placed After Solid Q3 Earnings

Namaste Stock

Namaste stock looks well placed to make some big gains in the cannabis 2.0 market after Namaste Technologies (TSXV:N) (OTCQB:NXTTF) reported solid third-quarter earnings.

Solid Revenue Despite Discontinuations

For the third quarter ended August 31, Namaste reported consolidated revenue of $3.8 million CAD, despite discontinuing several of its various websites; this highlights the company's ability to bring in revenue from alternative sources. Gross margin improved also, from 24% in the same period last year to 26%. The company ended the quarter with working capital of $54.2 million CAD, which includes $49.1 million CAD in cash on hand, providing the necessary spending power for Namaste stock to take advantage of the 2.0 market when it comes into effect later this year.

"We're seeing the positive effects of rebuilding our revenue stream in our drive to replace discontinued businesses," said Meni Morim, CEO of Namaste Technologies. "Other areas of our business continue to expand. We continue to build our government revenue channel and expect to make further progress and related announcements during the current quarter," he added.

>> Auxly Stock Gains After Announcing Repayment Plans and Progress

The Toronto-based firm operates the largest global cannabis e-commerce platform with over 30 websites in more than 20 countries under a variety of brands. Namaste shares are trading at $0.38 following the release of the results.

Namaste Stock Looks to 2.0 Market

While investors may fret over Namaste's reported net loss of $14.7 million CAD, or $0.05 per share, compared to $8.7 million CAD for the same period last year, the company was quick to point out that a portion of its expenses was related to legal fees from the $2.75 million USD class action settlement related to an internal scandal at the company. The scandal led to the ousting of former CEO Sean Dollinger, who was replaced by Mr. Morim in August in a move that generated double-figure gains for Namaste stock and its investors.

Cannabis 2.0 comes fully into effect in mid-December in Canada, which will open the cannabis market for the sale of derivative products such as edibles, vapes, and topicals. Namaste Technologies introduced several new product lines to its flagship CannMart website, as well as announcing partnerships in the medicinal cannabis and CBD-based beauty products sector, making Namaste stock one of the best penny stock plays in the 2.0 market.

What do you think?

>> Read More Namaste News

Featured Image: Canva