OrganiGram stock is one of the biggest pot stock gainers this year with a gain of over 60%. The marijuana industry is growing very fast, and investors on Wall Street have taken notice, with investment banks predicting that the industry will be worth between $50 billion and $75 billion in the next decade.
Among the hottest pot stocks is OrganiGram Holdings (TSXV:OGI) (OTCQX:OGRMF), which is high up the list of stock movers.
Solid Quarterly Results
The grower recently announced its second quarter results, which was the first quarter of adult-use recreational marijuana sales. OrganiGram Holdings has had a solid start to the year, pushing OrganiGram stock on an upward trend.
The company made significant progress on improving its balance sheet and production expansion, as well as derivative development. Q2 revenue doubled compared to the previous quarter. The healthy outlook of the company is a result of net sales that almost doubled in the second quarter following the legalization of adult-use recreational cannabis in Canada, which helped to boost sales immensely.
Going into 2020, OrganiGram is planning to up its production capacity. It is currently expanding its greenhouse and should have capacity up to 113,000 kg annually by the end of 2019.
In the fall of this year, OrganiGram is expecting to introduce vaporizer cartridges and edibles to the market, including shelf stable water-soluble CBD emulsion formulation for drinks that works in 15 minutes compared to the one hour it takes for edibles to have an effect.
Unlike other industry players, OrganiGram’s operations have been profitable, and its Q2 revenue has soared 693% year to date to $26.9 million CAD. If sales in Canada continue to grow, then it looks like the company will earn even more operating profit next year.
International sales have been low so far, but OrganiGram did complete its first international cannabis shipment to Australia in July last year.
With OrganiGram stock playing at record highs, bulls are optimistic that the stock may continue maintaining a healthy outlook.
Shares of OrganiGram are down about 1% to $6.64 at the time of writing.
Featured image: Canva