(C) Reuters. Should You Buy the Dip in Organigram?
Shares of Canadian cannabis operator Organigram Holdings Inc. (OGI) have lost 34.8% over the past month, primarily because of investors’ concerns over the company’s declining revenues and huge losses. But the question now is, as a new competitive market is looming, will OGI be able to stay afloat? Read ahead to learn more.Headquartered in Moncton, Canada, Organigram Holdings Inc. (OGI) is a producer and seller of cannabis and cannabis-derived products, operating under the Edison Reserve, Edison Cannabis Co., ANKR Organics, and Trailblazer brands. Over the past month, OGI’s share price has declined 34.8% on investor concerns about its lower-than-expected second quarter revenue and earnings.
While the company believes that its recent acquisition of The Edibles and Infusions Corporation could help boost its revenue, its business is still far from being profitable. The stock is currently trading 63.7% below its 52-week high of $6.45.
Despite gaining 63.5% over the past year, OGI’s dismal performance in its last reported quarter and low profit margin could cause its shares to retreat further in the coming months.
Should You Buy the Dip in Organigram?
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