High Tide Inc. (CSE:HITI) (OTCQB:HITIF) has long been one of Rich’s best cannabis stock picks. The Alberta-based, retail-focused cannabis company has an impressive holdings portfolio and strong revenue. It’s the kind of company that pot stock watchers need to be following.
This is why the company’s current share price is such an attractive opportunity. As Rich notes, this is a company with long-term potential that can currently be bought for dirt cheap.
“When I first brought you guys High Tide, they were at about $0.30,” says Rich. “They then went to $0.60—they were a quick double—and since then like everyone else in the cannabis sector, all its done is fall. Now I think this is the absolute bottom for High Tide. Let me explain why.”
High Tide’s Retail Footprint
As of November, the company has a total of 29 storefronts, most of which are in Alberta but several are in Saskatchewan and Ontario. Twenty-six of these are Canna Cabana stores, while three are KushBar locations.
In addition, High Tide is working towards having 42 retail locations open across Canada. This is the maximum number permitted by the Alberta Gaming, Liquor and Cannabis regulatory body.
“With retail stores opening up all across the country, I think these guys are well-positioned to take advantage of this opportunity,” says Rich.
Strengthening High Tide’s retail position is its various partnerships with celebrities and entertainment companies. These partnerships include Snoop Dogg and Paramount Pictures, and are conducted through its subsidiary, Famous Brandz, a manufacturer of licensed lifestyle accessories.
The company also owns and operates Grasscity.com, the world’s most searchable online retailer of smoking accessories and cannabis lifestyle products. Based in Amsterdam since 2000, Grasscity.com attracts approximately 5.8 million site visits annually.
High Tide Secures $10 Million Credit Facility for Ontario Expansion
Through a loan agreement with Windsor Private Capital, High Tide has secured a $10 million credit facility.
The facility, which represents Windsor’s first investment in the cannabis industry, provides the company with the needed flexibility to carry out its corporate objectives for 2020. These objectives include expanding into Ontario as the largest cannabis market in Canada.
High Tide’s President and Chief Executive Officer, Raj Grover, adds that the funds will help the company “maximize shareholder value in 2020.”
The company previously received $10 million via an investment from Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB) in December 2018.
HITI’s Performance Presents Opportunity
“The stock is the lowest it’s ever really been,” says Rich. “To me this identifies the bottom and this is what I would consider a trend reversal. I think it will gap up at some point and shoot back up to the $0.37 range. That’s more than 100% upside from its current price.”
High Tide’s highest price was $0.50, just two months after the Aurora investment. Save for a few short-lived upswings, HITI shares have steadily lost value to rest at a low of $0.16.
The last two days, however, saw a drastic increase in value. HITI shares are now trading 31.25% higher at $0.21. Is this the beginning of a return to form? Or just another temporary bubble? Let us know your thoughts.
Featured image: Canva