Is General Cannabis Corp (OTCMKTS: CANN) A Bounce Back Play On Positive 2018 Outlook?
Shares of General Cannabis Corp (OTCMKTS: CANN) are showing signs of trading higher as investors react to impressive full year financial results and a positive outlook for 2018. According to the Chief Executive Officer, Michael Feinsod, the company has never been in a better position to take advantage of its strong infrastructure, in a bid to focus on growth.
Over the past one month, the stock has rallied by more than 60% after coming under pressure early in the year. Given that it is currently trading at the $4.34 handle, the stock needs to rise and close above the $6 a share level, for it to attract investors who until now have been on the fence.
A rise followed by a close above the $6 a share level should open the door for the stock to spike to the $10 a share mark. On the downside, the stock faces immediate support at the $4 a share mark below which it remains susceptible to declines to the $2 a share mark.
General Cannabis casts itself as a comprehensive national resource for high quality service providers in the legal cannabis space. The company is also engaged in the business of cultivating producing and sale of cannabis products.
Why is the Stock Spiking?
The stock has bottomed out after coming under pressure early in the year after the management stated 2017 was a transformative year. According to the Chief executive officer, the balance sheet is stronger than ever, on the company generating impressive revenues last year.
General Cannabis has already paid down a substantial amount of its debt and raised new equity, expected to finance development plans in 2018. The company exited 2017 with a net loss of (-$8.2) million an improvement from ante loss of (-$10.2) million reported in 2016
“Our business expanded during the year, which positions us for continued national expansion. We will continue to hire talented executives to support our growth. General Cannabis has never been in a better position to take advantage of our strong infrastructure and continue to focus on growth through acquisitions,” said Michael Feinsod Executive Chairman of the board.
The management expects Security Segment revenues to increase as expansion in California gains traction. The company is also planning to explore additional service offerings. Marketing segment should also post significant growth as General Cannabis pursues national distributors and retailers for its apparel lines.
General Cannabis is also planning it carry out acquisitions in 2018 in a bid to accelerate growth.