TGOD stock has been showing higher volatility this month as the stock went up 15% last week, but gave up all its gain this week and is now trading near its 52-week low. Let's dig into the recent developments from The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF).
Analysts are Bullish
The cannabis industry has gone through pretty tough times over the past six months or so after the remarkable rally in many stocks at the start of the year. The reasons behind the slowdown are manifold, but most analysts believe that the industry is going to grow in the long term. As per analysts, it is perhaps time to have a look at the cheapest pot stock that is currently available on the market.
The stock in question belongs to Canadian company The Green Organic Dutchman and analysts believe that at this point in time, it could well be TGOD stock with the maximum upside for investors.
Analysts believe that the company is going to generate sales to the tune of $169 million in 2020 and considering the current stock price of TGOD, the stock is only trading at 2.9 times its future sales. That indicates that the stock is currently the cheapest among pot stocks in the market. In this regard, it is important to keep in mind that some of the larger companies like Tilray (NASDAQ:TLRY) and Aurora Cannabis (TSX:ACB) (NYSE:ACB) trade at three times their future sales.
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Right now, TGOD stock is down 1.67% at $2.35.
Cronos Group (TSX:CRON) (NASDAQ:CRON) trades at a multiple of as much as 10 times its future sales. In such a situation, The Green Organic Dutchman perhaps presents an opportunity for those who are looking for value.
Over recent weeks, the company suffered a bit after Aurora Cannabis disinvested its 17% stake in TGOD stock. That might seem like a setback, but it could easily be turned into an opportunity for The Green Organic Dutchman to grow at a quicker rate. The company used to sell its premium cannabis to Aurora at the wholesale rate, but now it will be able to sell the same product at market rates to other clients.
TGOD stock has slumped 55% from its March peak price.
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