TGOD Stock Gains Momentum on Value Buying: Should You Be Excited?

TGOD stock

TGOD stock has been gaining momentum over the past couple of weeks after The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) hit a new low in mid-November. Let's find out if the stock has reached the bottom yet.

TGOD Stock Under Pressure

Last year, The Green Organic Dutchman hit a valuation of as much as $1 billion, but since then, TGOD stock has gone downhill and currently is worth only $232 million CAD.

At this point, TGOD stock is near its all-time low, so any kind of positive development may be enough to send the shares higher. There is an expectation among some analysts that it could prove to be an interesting pick among cannabis stocks for 2020. One of the most important factors behind the company’s growth was its partnership with cannabis giant Aurora Cannabis (TSX:ACB) (NYSE:ACB).

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Aurora was supposed to help The Green Organic Dutchman with building its greenhouse facilities and was also going to buy one-fifth of TGOD’s produce at wholesale rates. However, Aurora decided to cancel the partnership, and that proved to be a major setback for TGOD stock.

Key Analysis

In addition to that setback, TGOD has failed to line up any major client yet for its products, and hence, there are plenty of risks. On the flip side, all of this has been already priced into the current stock price, and even small positives could eventually result in a rise.

Moreover, The Green Organic Dutchman is involved in producing organic cannabis, which is why even a fall in price should not affect it as adversely. In addition to that, it is important to keep in mind that TGOD is also in the process of launching a range of value-added products in December this year. That could also prove to be a positive trigger.

Since November 15, TGOD stock has gained almost 30% after receiving an order to ship cannabis to Nova Scotia, Alberta, and Manitoba.

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