Did we miss this one?

Only recently after thoroughly researching the cannabis sector when it comes to investment opportunities was I able to discover this company. I was on a mission to discover an investment opportunity that involved the retail aspect of the cannabis sector as well as the distribution and diversity that not just one specific brand would carry. Greenlane holdings caught my eye after I found out that they are using a three-pronged approach and diversification among popular brands to build an industry-leading business. The company has had success in building brands like Pax and Juul which are immensely popular throughout North America. The company also supplies over 7000 business to business customers including independent retailers, licensed producers, chain stores and licensed dispensaries. Greenlane Holdings also services the e-commerce market through vapor.com, supply, and packaging as well as offering dropship services for third party websites. What I like about the company is that they are not simply one brand, they supply multiple businesses, as well as having their own unique brands. E-commerce is really where the marketplace is heading, and any company that has a plan to capitalize on that sector from multiple verticals should be positioning itself to profit down the road.

What happened Post IPO?

Greenlane holdings recently IPOed on to the NASDAQ in mid-April at $29 per share, roughly 70% higher than their anticipated IPO Price. The stock has seen a tremendous decline over the past few months and it recently hit fresh 52 week low of $7.39. Any cannabis investor in this environment knows that we have been in a heavy bear market, and it has been a tough time for any company looking to IPO. The cannabis sector peaked on April 19th one day after Greenlane IPOed and has declined ever since, so when it comes to performance, the decline in Green Lanes shares could simply be bad timing. At this point many of us investors within the cannabis space are becoming more and more cautious with the potential for further declines, investing in the sector is a true test of patience. Despite the tough environment we need can’t forget the fundamentals of the industry and the massive potential for growth that this industry holds. Green lane holdings is a stock that we should take a closer look at and here is why.

The Three Prong Golden Ticket

Greenlane Holdings is set to capitalize on three rapidly expanding industries including the global cannabis market, the global e-cigarette market and finally the global CBD market. These three markets alone are expected to exceed 170 billion dollars and Greenlane Holdings is looking for a piece of the pie. The company has done a great job so far building brands like Pax and Juul and I like the fact that they are going to continue to assist in building brands while maintaining a portfolio of their own. The company offers a wide range of products including Hemp/CBD Oil, vaporizers, tools and appliances, grinders and storage and papers/wraps to name a few. What I also like about the company is the fact that they have six automated distribution centers in North America reaching 90% of the continent within 2 business days. The company is building not just a basket of brands and great products, but an e-commerce distribution network that seems well-positioned for the future. On top of their North American operations, the company is also focusing on international expansion setting up an initial operation in Europe and plans to expand into Australia and South America in the near future.

When it comes to Greenlane holdings, there are not many companies like this one, they are looking to capitalize on multiple industries that to this day still have lots of potentials to grow in the near future. At these prices, sitting right around fresh 52 week lows, take a look at Greenlane holdings before it’s too late!

GNLN shares were trading at $7.75 per share on Wednesday morning, down $0.00 (0.00%). Year-to-date, GNLN has declined -63.27%, versus a 20.72% rise in the benchmark S&P 500 index during the same period.

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About the Author: Aaron Missere

Aaron is an experienced investor who is also the CEO of Departures Capital. His primary focus is on the cannabis industry. He also hosts a weekly show on YouTube about marijuana stocks. Learn more about Aaron’s background, along with links to his most recent articles. More...

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