$OGI Showing Signs of a Bottom Despite Continued Sector Rout

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OGI has held the 200DMA as support the last two trading sessions & on July 15th. Hammer candle was put in on 7/29 followed by a bullish engulfing signal today.

OGI current trades at a 10x P/E 2019 revenue and a 3-4x P/E on FY2020 revenue estimates. We see several near-term catalysts for OGI and feel the stock will benefit immensely once the current industry chaos settles down (CTST, APHA, HEXO, etc)

The company announced July 15th, it developed a Rapid-Onset Nano-Emulsification Technology for Cannabis Beverages with an initial onset of 10-15 mins vs 60-90 mins on average. The company also clearly told the market they're actively seeking a beverage partner & is for sale.

Management has proven they can execute with positive adjusted EBITDA 4x Qs in a row, minimal dilution to shareholders vs peers, disciplined w/ expenses (No 600M losses here), and a very transparent with investors. OGI management won't pump the stock & give unrealistic guidance like some of its peers, OGI is focused on building an operationally sound profitable cannabis company in Canada & Internationally.

We expect OGI to get a lot of attention from institutional & retail investors state-side in 2H 2019 as investors begin to pay more attention to market caps, margins, profit/loss, etc. The industry is maturing very quickly and we believe investors will begin to see OGI as a Top 3 LP.

Time will tell...

***Disclaimer: I am long OGI. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.***