Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) Climbing The Ladder

Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) has started the year on a positive note if a 100% plus spike in share price is anything to go by. The company delivering impressive year-end financial results as well as the 2019 outlook affirms further upside action.

Catalysts Fuelling Upward Momentum

A confirmation that the company ended the year with a strong balance sheet and liquidity of about $263.5 million should continue to excite the markets. Investors taking note of the milestones achieved in 2018 should also go a long way in strengthening the stock’s upward momentum.In addition to solid financial results, Green Organic Dutchman Holdings remains the center of attention on being aggressive in pursuit of market share. The company has secured a supply deal that paves the way for it to be a key player in the burgeoning Canadian cannabis landscape.The company moving to strengthen its Cannabis extraction capabilities with the signing of a deal with Valens Groworks Corp (OTCMKTS:VGWCF) is another development that cannot be taken for granted. Recent events explain why the stock is the subject of renewed focus by research firms.Analysts at Jefferies and Seaport Global initiating coverage of the stock with a ‘buy’ rating could as well signal what is at stake in 2019. The stock is currently trading in a steep uptrend having gained more than 100% in market value since the start of the year.

TGODF Share Price Analysis

A breach of the $4 mark, which happens to be a critical resistance level, has opened the door for the stock to continue edging high. Above the $4 a share handle, Green Organic Dutchman Holdings remains well positioned to make a run for 52-week highs of $7.89. TGODF Daily ChartA sell-off followed by a close below the $4 a share mark, on the other hand, could open the door for the short sellers to come back, and push the stock lower. Sell-offs in the short term will have to contend with the $3 mark, which is the next strong support level.Price action activity indicates that Green Organic Dutchman Holdings has what it takes to continue surging, backed by solid fundamentals.

What Does The Green Organic Dutchman Holdings Do?

Green Organic Dutchman Holdings is a cannabinoid research and development company. Headquartered in Canada, the company is engaged in the production of organic cannabis products such as seeds, cannabis oils, edibles and fresh cannabis for medical applications.

Why Is Green Organic Dutchman Holdings Rallying?

The Green Organic Dutchman Holdings is rallying on investors taking note of its stellar performance last year as well as 2019 outlook. The recent earnings report indicates the company is on course to become a key industry player given the milestones achieved.For starters, the company boasts of a strong balance sheet with $263.5 million in cash and restricted cash. Given the substantial amount of money, the company remains well positioned to finance its expansion as well as an international growth strategy.The company has also shown it is ready and willing to spend vast sums of money to complete acquisitions that have the potential to fuel inorganic growth. In the last quarter of 2018, the company completed the acquisition of HemPoland for $18.6 million.With the acquisition, the company strengthened its revenue base as HemPoland went on to generate $1.9 million in sales in Q4.

"We are very excited for 2019, and we remain focused on delivering on the Company's operational plans of producing and bringing to high market quality, premium certified organic cannabis,” said CEO Brian Athaide.

A robust retail footprint has helped Green Organic Dutchman Holdings secure a supply deal with the Ontario Cannabis Retail Corporation. The deal paves the way for the company to penetrate the Canadian cannabis market at a time of growing demand.The company has also inked a strategic partnership with Valens Groworks Corp to accelerate its Canadian hemp strategy. The deal should accelerate the unveiling of the company’s hemp-derived product lines to cater to the growing demand. Valens has agreed to extract and purify the company’s cannabis and hemp biomass.

Bottom Line

Green Organic Dutchman Holdings is in the best shape it could ever be, as it continues to fire on all angles when it comes to operational efficiency. Buy ratings from research firms support share price targets of more than $6 underscores the fact that the stock has a lot of room to move on the upside.That said the stock looks set to continue climbing the ladder supported by solid fundamentals as well as bullish momentum in the overall industry.We will be updating our subscribers as soon as we know more. For the latest updates on TGODF, sign up below!Disclosure: We have no position in TGODF and have not been compensated for this article.