TGOD stock is currently on the rise. To press time, shares are up over 5% and selling for $4.09 CAD on the TSX. It’s a surprising jump for The Green Organice Dutchman (TSX:TGOD)(OTCQX:TGODF) that has appeared as if from nowhere.
Last week shares effectively flatlined, despite the company reporting a somewhat decent Q1 report—investors weren’t thrilled. However, today we are seeing a sudden spike that is hard to explain.
TGOD Stock Rises
The company reported its fiscal Q1 2019 earnings late on Tuesday 14th. It’s a week on and TGOD stock has barely reacted across the week. Soon after the release, shares were up 1.4% by Wednesday, but after that, they barely changed.
And this, despite TGOD growing its sales 28% year over year in Q1. So what’s the problem? Well, 28% still only amounted to sales of $2.4 million for the quarter, and in an industry where your peers are selling $16.2 million, alá HEXO Corp (, that is not great.
By comparison, HEXO showed an increase of 144% from its previous quarter.
Further, the company reported a net loss of $14.1 million in Q1, citing its “preparation for commercial production and entry into the recreational market later this year,” as the reason why.
The Difference With TGOD Stock Is…
There’s an argument here though that where its peers are focusing on “main-stream” sales, The Green Organic Dutchman is focusing on high-quality cannabis—or “craft” cannabis sales. This may amount to fewer sales, but offset by a loyal following and higher price margins for a quality product. The results are yet to truly show but they very well might down the line.
Further, TGOD still remains one of the top ten producers by annual peak capacity. With an estimated yield of 150,000 kilograms by 2020, and with a market cap of $1.83 billion CAD, TGOD is sitting comfortably beside much bigger competition with much deeper pockets. For its small size, there’s something for investors to grab onto there.
But what do you think? Have you any idea why TGOD stock is climbing today?
Let us know!
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