In early trade on Monday, TGOD stock shot to the sky. Shares looked to be resurging as they packed on 13% in a 24-hour period. The surge continued to reach $3.05 on Wednesday, however by the close of market Thursday, TGOD stock fell back to $2.87.
Now, shares remain at this price, and it represents an overall decline of 24% year-to-date. Underperforming the broader market is not exactly going to help The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) right now, especially when many of its peers are outperforming.
TGOD Stock
It's fair to say that TGOD's most recent decline is likely attributable to the wider market lull, which has seen the entire index lose 31% since the end of April. For any stock that was already struggling, this type of climate was bound to spell disaster. TGOD stock is one such example.
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Head office has remained quiet. News has been sparse, and investors must feel in the dark as shares continue to fall.
TGOD Stock Moving Forward
The Green Organic Dutchman places a lot of focus on building a quality cannabis product with the aim of being a craft or artisan cannabis brand. Some may find the idea pretentious as it is aimed at those willing to pay more for quality flower. The company believes that this will eventually command a higher price per gram, which will reflect well on its profit margins.
Currently, however, the company has yet to return to investors, and there is an argument that the cannabis industry is far too young to be establishing artisan brands. Quality means extra cost, and this is a company not afraid to spend in order to get it. Herein lies a questionable business model because in a convoluted industry, TGOD may price itself out of the market.
From an investment point of view, not cutting costs to drive profits will likely impede share price. With little-to-no news coming from head office, it is very hard to know what is next for TGOD stock. What are your thoughts?
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