Origin House stock (CSE:OH) (OTCQX:ORHOF) has been climbing this week. At the current price of $9.20 CAD on the CSE, is Origin House an investor play in 2019?
Analysts seem bullish on this cannabis stock but let's check out some of its fundamentals.
California Market and Origin House Stock
The biggest players in cannabis are going to need to hit up California (if they haven't already). If you are a kingpin here, then you are on the way to making it big in the marijuana business.
The reason is simple; California is the biggest marijuana market in the world and Origin House happens to be the largest distributor of cannabis products here. It's a very lucrative position for any cannabis company to be in.
Origin House currently reaches around 70% of the cannabis dispensaries in California.
Expanding In-House Cannabis Brands
To add to that, Origin House also has its own line of in-house cannabis brands. Origin is growing its portfolio and sales from these are expected to increase to 50% of the company's total revenue.
Origin House Stock
Already up more than 35% since the beginning of 2019, its momentum looks set to continue as the Californian landscape is moving in its favor.
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The state is finally making sense of its recreational marijuana market. Due to red tape in licensing dispensaries and massive tax rates, the industry was unable to kick off as it should have. But now, more and more dispensaries are finally receiving licenses, and the California Legislature is considering a bill that would lower cannabis taxes. This should improve growth prospects for Origin House and its stock.
If an updated bill comes to fruition, it would be a great move for the industry as a whole and Origin stock would surely benefit from the news.
The company is beginning its expansion overseas with a recent Canadian acquisition. A pending buyout of vape retailer 180 Smoke will give Origin House a platform for launching its own brands in this market.
What do you think about Origin House stock? Are you bullish on this cannabis company?
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