TGOD Stock is Showing Consistent Selling and Investors are Nervous

TGOD stock

TGOD stock has been showing consistent selling pressure since mid-March with a sharp fall of over 40%. Let's analyze the recent developments from The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF).

Over the past months, The Green Organic Dutchman has emerged as one of the more important players in the cannabis industry, but the company wants to eventually become the biggest player in the premium cannabis space, and it is doing everything it can to achieve this vision.

One of the more important things to keep in mind with regards to the company is that it is not overly concerned about cutting costs in order to drive profits. Instead, it is more focussed on producing the best premium cannabis in the industry. The company’s rationale is that if they manage to produce the best product, then this could, in turn, command higher margins.

Production Capabilities

The Green Organic Dutchman has also managed to ramp up its production capabilities significantly, and it has projected that by the last quarter of 2020, it will be able to produce 200,000 kilos of cannabis a year. In addition to that, the company has also managed to strike supply agreements with entities like Velvet Management and Cannabis Retail Ontario. These deals could also go a long way in ensuring that the company is able to sell its products without any trouble.

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TGOD stock is trading 0.30% higher at $3.13 on the TSX.

The Green Organic Dutchman has also started a joint venture in South America, where the cannabis market is valued at $9.8 billion. Additionally, it has struck up a partnership with food processing company Symrise for the creation of cannabis beverages.

The growth of health-focussed ventures is also a significant reason for the company’s optimism. According to the company’s own survey, 61% of patients and half of recreational cannabis users prefer using premium organic products as opposed to the run of the mill stuff that might contain chemicals. Experts believe that although The Green Organic Dutchman is not going to become as big as Canopy Growth (TSX:WEED) (NYSE:CGC) or Aurora Cannabis (TSX:ACB) (NYSE:ACB) anytime soon, it gives investors an opportunity to invest in a niche sector, which definitely has the potential for growth.

TGOD stock has fallen from $5.50 (mid-March) to $3.15 — a correction of 42% in quick time. Moreover, the stock is down about 70% from its 52-week high of $10.24.

>> Read More Green Organic News

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