Demand is there !Question is will WMD supply. Q2 upcoming financials coming out and Q3 later will be tell tale indications. The real cash cow should be Q4 revenue. Not just a few analysts and shareholders who know now about WMD's potential, by then Market will take notice.
WeedMD: A Growth Story to be Watching
We believe that WeedMD Inc. (WMD.V) (WDDMF) is well positioned to capitalize on the recent issue with CannTrust and is an opportunity that we are closely following. Earlier this year, we visited the Aylmer facility and were beyond impressed with the scale of this operation. When you combine the company’s expanding indoor footprint with the recently planted outdoor cultivation footprint, you have a company with major growth prospects undervalued by the market.
Another reason we are excited about WeedMD is due to the focus on the cannabis concentrate market and expect this to be a major aspect of the business in 2020. Demand for cannabis concentrates continues to increase and are the input product required to create cannabis infused prodcuts. With Canada’s edible and cannabis oil market expected to open in the coming months, WeedMD will be well positioned to capitalize on this opportunity and should see strong demand for its products.
Based on the analysis we have conducted on the products purchased on the Ontario Cannabis Store (OCS), we can understand the high value of demand for WeedMD’s products, are amongst the first to sell out when new products are launched. We are bullish on the existing demand for the company’s products and expect to see the increasing demand quickly absorbed by the market.
Despite the recent pullback by the Canadian LPs, WeedMD continues to trade at a major discount to its peers. As the company continues to execute on its expansion, we expect to see fundamentals improve and will monitor how the team continues advance operations. WeedMD has significant catalysts for growth (the harvesting of the outdoor cultivation crop, the opening of the cannabis concentrate facility, and the completion of the expansion) and this is an opportunity that we continue to closely follow.