The global pandemic has made the situation even worse, and investors now are looking for companies that will simply survive. There are only two names in the legal-marijuana sector that investors can look to for relative safety.
Cannabis dispensaries saw their sales soar by double digits. One company dealt with hour-long lines at its Pennsylvania stores. In California, for instance, daily sales were up by more than 50% during the first few weeks of March and reached a peak of 159% mid-month.
Jamie Pearson, CEO of California-based Bhang Inc, which makes cannabis-infused beverages, chocolates and other products, said sales were booming and should boost revenue and profits this quarter.
Roy Bingham, CEO of cannabis market research firm BDS Analytics, said he expects the industry to not only ride out the coming economic storm but continue to grow. His firm has yet to revise its prediction of a 30% jump to $17 billion in U.S. retail sales for 2020. “First, you have this existing core demand; 65% of cannabis consumers consume on a daily basis,” said Bingham. “And now you have people who can’t go to the gym or the bar and are locked up at home, where about half of all cannabis consumptions happens anyway.”
The growth in cannabis sales appears to have brought some relief to cannabis stocks, which have been going through a rough period.
American Green, Inc. (OTC: ERBB) became, in 2009, America’s second publicly-traded company in the cannabis industry. American Green now, with its more than 50,000 individual certified shareholders, is one of the largest (in shareholder count) in the cannabis sector, American Green’s mission is to lead the cannabis and premium CBD industry. Leveraging our team of professionals in cultivation management, manufacturing, extraction, wholesale, retail, and community outreach, we strive to develop sustainable initiatives in the cannabis-adjacent and CBD industries, laser-focused on adding company and shareholder value.
Yesterday, the company announced that one of its best AGM Smart Vending Machine Kiosk customers, Earthly Mist, has successfully integrated ERBB’s proprietary vending technology. so that their retail customers and staff never need to interact together in order to complete a transaction at their stores. As a result, this contact-free transaction keeps all parties safer in our Covid-19 environment. Earthly Mist, like most companies in the retail sector, found itself in a situation when Covid 19 hit, of having to close its stores unless it found a way to continue to serve its clients without risking the health of its employees and customers. Store management came up with a solution to deploy their American Green AGM kiosks to carry out a complete transaction without any human interaction whatsoever.
In other news, American Green plans to open up 10 additional major markets to experienced vending operators wishing to sell American Green’s Premium CBD line of products. In addition to the AGM smart vending kiosk, the company is also a leading online supplier of America-made, high quality CBD products which it plans to “marry” to its state-of-the-art AGM machines.
ERBB is trading at a discount compared to other players. And several upcoming catalysts could catapult shares higher. In our view, a bounce is all but guaranteed. Use this to your advantage to make some money back. Right now, all of the fear and negativity is priced in. That means, American Green, Inc. (OTC: ERBB) in the short-term, have nowhere to go but up.