Marijuana - Companies & Stocks

[Hunchbackgeek]

OGI The case for OrganiGram......
You can find a lot to like about OrganiGram merely by looking at its fiscal 2020 first-quarter results announced in January. While many of its peers have provided disappointing quarterly updates, OrganiGram handily beat expectations.

The company's revenue continues to soar thanks to OrganiGram's strong presence in the Canadian adult-use recreational marijuana and medical cannabis markets. OrganiGram appears to have moved past issues with product returns related to lower-than-expected demand for THC oils last year.

Probably the biggest advantage that OrganiGram has over its peers right now is that it's already generating positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The company did have one blip in Q4 where its adjusted EBITDA was negative, but it's delivered positive numbers in other recent quarters. An important key behind OrganiGram's ability to achieve positive adjusted EBITDA is its low cultivation costs.

OrganiGram isn't too far away from being profitable on a consistent basis. Its net loss in Q1 was only $0.9 million in Canadian dollars. The company's fiscal discipline combined with increasing revenue should put OrganiGram operating in the black far sooner than most of its rivals.

The company also has a couple of tailwinds that should fuel higher revenue. Ontario is starting to issue more licenses to retail cannabis stores. The Cannabis 2.0 cannabis derivatives market is slowly picking up steam.

In addition, OrganGram's shares currently trade at less than six times trailing-12-month sales. That's cheap compared to most Canadian marijuana stocks.

https://www.fool.com/investing/2020/03/01/better-buy-organigram-holdings-vs-aurora-cannabis.aspx

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