The cannabis industry is still relatively at a nascent stage when compared to other established industries, so investors would be wise to consider the long-term outlook. In recent times, the industry has gone through a lot of trouble and only a few companies have managed to hold their own during the downturn. One such company is Organigram Holdings (TSX:OGI) (NASDAQ:OGI), but does Organigram stock have a good enough long-term prospect?
In this regard, it is important to point out that Organigram has taken a different approach when compared to some of the other firms in the industry.
Key Factors to Watch
While many companies have blown millions on acquisitions and damaged their balance sheets, Organigram Holdings has instead focused on reducing its cost of production. The dedicated approach from Organigram could eventually help the company become a strong long-term player in the cannabis space.
It is tough for anyone to make any concrete predictions for the coming years, but it must be acknowledged that Organigram has put the building blocks in place for sustained success. Many of the largest companies are still struggling to lower their production costs at this point.
At the time of writing, Organigram stock is trading down by 1.42% at US$2.64.
The company has created a highly streamlined production facility in Moncton, New Brunswick. Despite not producing at a huge scale, Organigram has managed to keep costs low, and its dried flower variants have attracted positive reviews. In addition to that, Organigram has moved into the cannabis derivatives space by building up an impressive portfolio of powders, vapes, and edibles, among others.
When this is considered all together, Organigram Holdings could be seen as a viable long-term play for some.
What do you think?
Featured image: Canva