OrganiGram stock was selling for approximately $4.20 a share at the end of 2018. Investors who bought during this dip are already making a cool profit on that investment. Only two weeks into 2019, and OrganiGram stock is now selling for $6.29; a gain of over 50% from December's low.
It could be perceived that the current industry-wide bull run is the reason for these impressive gains. But there's a reason investors favor OrganiGram Holdings (TSXV:OGI); it has the potential to return legitimate profits in the not too distant future.
OrganiGram Stock Potential
OrganiGram Holdings is arguably one of the most cost-effective marijuana growers out there. The company operates out of one single location in New Brunswick, which means it saves money on a reduced supply chain and shipping expenses.
It also does a lot with its relatively small 490,000 square foot capacity. Implementing a three-tiered plant stacking system results in the company producing 113,000 kilograms of cannabis annually. This type of output means the company is keeping pace with its peers but doesn't have to build a 1 million-plus square foot site to do so.
The company is generating better yields than initially forecasted; its facility now churns out enough product to place OrganiGram as a top-10 producer in Canada—which is good news for the OGI stock.
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This high-yield, low-cost production should lead to sustainable and significant profitability in 2019. This is why OrganiGram stock is one to watch for investors.
The Bottom Line
Investment bank Cowen & Co has predicted that the legal marijuana market could be worth $75 billion by 2030. While still young and with much to prove, that figure offers a huge opportunity for long-term investors. So with that in mind, one of the surest bets investors will look for is a straight up marijuana grower and seller.
One that is continually producing quality cannabis while keeping operations to the bare minimum will make significant profits in this market. This is why OrganiGram stock is a hot potato right now.
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