TerraTech (OTC: TRTC) is a fully integrated cannabis cultivation, production, and retail company based in Canada. Its holdings range from retail stores to real estate and processing plants. Investors looking for cannabis stocks that are more diversified will find this pick to be attractive. The company just announced a $20 million share buyback program, which could initiate a reverse in fortune for this bargain stock.
Buybacks increase the percentage of ownership for each shareholder by reducing the pool of outstanding shares that are available. This increases shareholder value and it can lead to short-term increases in stock activity. The buybacks will be funded in full, from $36 million in asset sales that were announced earlier this year.
The market value of Terra Tech is believed to be below its potential. There’s the possibility of an upside for the business, especially with a growing legal cannabis market in Canada. In addition to increasing share value through buybacks, the company is focusing on operational improvements and restructuring to raise the bottom line.
One important tailwind for the company is the pending legalization of edible cannabis products in Canada, which will expand its total addressable market. Stock is trading well below the 52-week peak of $2.26, making this one of the most promising bargains in the legal cannabis sector today.
- 1 Year Price Growth: -81.34%
- YTD Price Growth: -38.58%
- 3 Month Price Growth: -38.04%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.