Cannabis stocks continue to hit 52-week lows practically across the board. Fire & Flower Holdings (TSX:FAF) managed to recover some of its losses on Monday, jumping 12% in morning trading.
What happened? Fire & Flower stock rose about 12% on Monday, back to share prices seen last Wednesday in the beginning of the December. This comes after the cannabis stock announced milestones that included adding its PotGuide and Wikileaf to online cannabis retailers on top of consolidating shares.
Its products can now be purchased and fulfilled throughout Ontario, Manitoba, British Columbia, Saskatchewan, and, soon, Alberta. This comes on top of several new announcements made in the last month. These have sent the cannabis stock on a major growth path towards becoming the discount cannabis retailer.
So what? In the last month alone, Fire & Flower stock announced several new items for its growth strategy. This includes a potential listing on the Nasdaq, which led to the consolidation of shares on Dec. 1. This is a major move towards listing on the United States index, as the company continues to expand in the United States.
These moves are the latest in the company’s growth strategy, where it also announced a partnership with Alimentation Couche-Tard in October. Fire & Flower stock will partner with the parent company of Circle K stores to open new retail locations next door. Alimentation has locations across North America, including the U.S., so major expansion is already in the works.
Now what? Fire & Flower stock remains one of the strongest cannabis stocks in the industry at a time when many stocks are collapsing all around it. Shares are now at 52-week highs after the price consolidation.
Analysts continue to see it as a great deal in the cannabis industry if you’re willing to be patient and wait for U.S. legalization. But even still, the $202 million cannabis retailer has several growth initiatives underway for solid revenue. Creating store locations next to every Circle K, a Nasdaq listing, and more products online create more earnings opportunities. And that’s more than many other cannabis stocks can claim.
Shares of currently trade at 52-week highs at $5.64 per share as of writing.
The post Why Fire & Flower (TSX:FAF) Stock Jumped 12% on Monday appeared first on The Motley Fool Canada.
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC.