x min read

General Cannabis Corp (OTCMKTS:CANN) Delivers Strong Results

General Cannabis Corp (OTCMKTS:CANN) Delivers Strong Results
Written by
Alex Carlson
Published on
March 29, 2016
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook
InsidrFinancial

General Cannabis Corp (OTCMKTS:CANN) delivered strong earnings results and that's gotten investors excited about its stock. This comes as investors are looking to position themselves for the coming Green Rush and are looking to identify the best companies in the marijuana space. We’ve been talking about this ever since 2016 rolled around. Roughly 14 states could legalize marijuana this year, adult-use cannabis or possibly both, either at the ballot box or through state legislatures. While it’s doubtful all those states will be successful, there’s a good chance at least a handful will legalize in 2016. No other single year has offered such incredible promise in terms of the sheer volume of states that could legalize, thanks to other pioneering marijuana markets and growing support for cannabis in general.The ArcView Group just reported that legal sales of cannabis grew to $5.4 billion in 2015, up from $4.6 billion in 2014. Demand is expected to remain strong this year and the research firm forecasts sales of $6.7 billion. Nonmedicinal adult use accounted for $998 million of the total sales in 2015, up from $351 million in 2014, according to the ArcView/New Frontier report summary.The most surprising aspect for us at Insider Financial is the fact that marijuana stocks have underperformed the major market indices. This sector is probably the fastest-growing industry in America right now and most of the public companies in the space are trading for pennies. With the potential interest coming from all walks of life, we think you’ll see bottom fishers looking for a place to invest.Pot stocks got active this month after GW Pharmaceuticals plc (NASDAQ:GWPH) reported a successful phase three clinical trial that proved its drug Epidiolex significantly reduced seizures in children with Dravet Syndrome. This news created momentum across the entire marijuana spectrum. Investors see the potential for cannabis-based drugs to replace addictive pills like Oxycodone. Many are now seeing the bigger picture with cannabis and that it’s not just for recreational use, but can also treat diseases. This will lead to more widespread acceptance and get not only Wall Street behind pot stocks, but the regulatory environment in Washington DC as well. These two factors will send pot stocks exploding up the charts.General Cannabis Corp describes itself as "the all-in-one resource for the highest quality service providers available to the regulated Cannabis Industry. We are a trusted partner to the cultivation, production and retail side of the cannabis business. We do this through a combination of strong operating divisions such as real estate, consulting, security, financing and the distribution of important infrastructure products to grow facilities and dispensaries. As a synergistic holding company, our subsidiaries are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed." In 2015, total revenues increased 634% to $1,762,978. The company is entering 2016 at a $2.75 million revenue run rate. This is much better than many other pot stocks, most of which have minimal revenues or assets.CANN has several divisions. Iron Protection Group provides advanced security, including on-site professionals, video surveillance and cash transport, to licensed cannabis cultivators and retail shops. Chiefton Supply Co., is an apparel and design company. Chiefton designs, distributes and sells apparel featuring graphic designs. GC Supply is a reseller of supplies to the cannabis market. Next Big Crop delivers comprehensive consulting services to the cannabis industry that include obtaining licenses, compliance, cultivation, logistical support, facility design and building services. CANN also operates The Greenhouse, a 16,056 square-foot former retail bank, which will be converted to serve as the largest shared workspace for entrepreneurs, professionals and others serving the regulated Cannabis Industry. Clients will be able to lease space to use as offices, meeting rooms, lecture, educational and networking facilities, and individual workstations.General Cannabis is one of the best run companies in the marijuana space. CANN also has institutional ownership with the Tiburon Opportunity Fund LP owning 6,201,072 shares, good for a 15.6% stake in the company. We will be updating Insider Financial as soon as we know more. For continuing coverage on CANN, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in CANN and have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.