The cannabis sector has not had a particularly great time over the course of the past months but that does not mean that there aren’t certain stocks that may be worth looking into. If you are currently looking for stocks in the cannabis sector then you could consider taking a look at the AmeriCann (OTCMKTS:ACAN) stock, which has been in the middle of a rollicking rally over the past week and has managed to clock gains of as much as 35% during the period. In light of such gains, it may be a great move for investors to now take a much closer look at the company’s operations and some of the latest developments. It is a cannabis company with a difference since it is involved in the development of processing, cultivation and product manufacturing facilities for the industry.
Trading Data
On Tuesday, ACAN stock fell 3.33% to $0.4350 with more than 3.4K shares, compared to volume of 7.8K shares. The stock moved within a range of $0.3310 – 0.4490 after opening trade at $0.3310.
About AmeriCann
The company is involved in the development of cultivation facilities through greenhouse technology. This is an important thing to keep in mind since greenhouse technology has been scientifically proven to be superior to growing cannabis in industrial warehouses under artificial lights. The latter is currently the standard in the cannabis industry. It has been suggested that since greenhouse technology helps in capturing sunlight, it needs 25% fewer lights and thereby cuts down on electricity bills by as much as 75%. As it happens, the company was in the news on Tuesday, when it made an announcement with regards to its quarterly and monthly revenues.
AmeriCann Announces All-Time Record Quarterly and Monthly Revenues
The company managed to record revenues for the fiscal quarter that had ended in June 2022. AmeriCann announced that it had managed to generate year on year revenues growth of as much as 36% for the quarter and that reflected a rise of $213902. It was a record for the company and must have come as a source of considerable excitement for investors. On the other hand the performance for the month of June also proved to be a strong one for AmeriCann as the revenues in June 2022 reflected a year on year rise of as much as 30% from the revenues in June 2021.
Tim Keogh, who is the President of the company, spoke about the performance of AmeriCann as well. He noted that everyone at the company was pleased at the sort of growth that had been recorded by the company as far as the top line was concerned.
He went on to note that the operating margins remained ‘very strong’ and concluded his statement by noting that AmeriCann was looking forward to announcing its financial results for the quarter ended in August 2022 in due course. The sharp rise in revenues is mainly the function of the higher revenues generated from products produced by AmeriCann at Building 1.
The Building 1 is the initial building that belongs to the company for the purposes of product development and is located in the town of Freetown in Massachusetts. It is going to be interesting to see if the stock can manage to hold on to its momentum and add to its gains today.
Key Quote
“We’re pleased with achieving record revenue for the quarter and with the strong top-line growth rate,” stated President Tim Keogh. “Our operating margins are very strong, and we look forward to reporting our full quarterly financial results in August of 2022.”
Technical Data
ACAN stock is trading above the 20-Day and 50-Day Moving averages of $0.40 and $0.39 respectively. However, the stock is trading below the 200-Day moving average of $0.53. The company has a total market capitalization of $10.44 million The stock is down 24% over the past 6-month.
