TGOD stock recently slipped below the $1 mark due to an ongoing severe correction in the broader cannabis sector. Let’s analyze the recent developments from The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF).
TGOD Stock is Down 60% YTD
It would be an understatement to say that the past few months have been rocky for the cannabis industry. During this period, many of the companies have seen their stock prices plummet considerably, and Canadian cannabis company The Green Organic Dutchman could not escape that fate either.
However, experts now believe that the company could well prove to be the stock to invest in, at this point in time. The stock has plunged by as much as 60% this year, but it’s possible that the situation will possibly improve over the course of the next months. It is necessary to take a closer look at the company.
While the situation with the cannabis industry was definitely a factor in TGOD stock’s decline, it should be noted that there were certain company-specific factors that affected The Green Organic Dutchman as well. One of the biggest triggers was Aurora Cannabis’ (TSX:ACB) (NYSE:ACB) decision to sell its entire existing stake in the company earlier this year. Following that, the stock plunged significantly as fears over financing increased among investors as well as market watchers. That created a lot of instability, and the company is still reeling from it. However, there are other factors that could make it an attractive proposition for investors.
Funding might no longer be a problem for the company if its application to be listed on the NASDAQ exchange is approved. In addition to that, the management has stated that The Green Organic Dutchman aims to be cash-flow positive by the end of the second quarter next year.
In addition to that, the legalization of derivatives in Canada could prove to be just the sort of opportunity that could change the company’s fortunes. It has only generated $7.2 million CAD worth of sales over the past 12 months, so the derivative market boost is needed if the company is to grow. It goes without saying that there are many risks involved, but it is important to note that TGOD stock is hovering around $1.00 CAD. currently
Featured image: Canva