OrganiGram Holdings Inc Approaches All-Time Highs On Large Breakout Volume

Benjamin A. Smith
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OrganiGram Holdings Inc (CVE:OGI) (OTCMKTS:OGRMF) (FRA: 0OG) is on our watch list as price action has been notably robust strong. The stock has been one of the day’s best performers, with a strong volume profile to match.

While the sector at-large has mostly been in rally mode on heavier activity, OrganiGram’s volume profile stands out. Within the first 15-minutes of trade, OGI had already achieved its 50-Day rolling median daily average, at around 615,000 shares traded. That will get out attention every time.

Organigram’s expanded cultivation license announcement from Health Canada this morning—coupled with Canopy Growth morning gap above key resistance—was enough to smash prices through $5.00-5.05 resistance which had been holding up remarkably well over the past two weeks.

Just as importantly, OrganiGram has displayed notable strength in the face of Canopy Growth’s gap-and-tank whipsaw above the key $40/share level in the morning session. After a brief swoon, prices have come roaring back, now trading near at the day’s highs. Volume is already at 3-month highs three hours into the trading day. It’s among the strongest mid/large cap company is the sector today (12:30pm):

Company Last Change % Change Volume
MYM Nutraceuticals Inc 1.4 0.1 7.69% 639.00k
OrganiGram Holdings Inc 5.32 0.32 6.40% 1.99m
Namaste Technologies Inc. 1.62 0.08 5.19% 1.79m
Aurora Cannabis Inc. 8.54 0.36 4.40% 8.55m
MedReleaf Corp. 25.94 0.93 3.72% 645.75k

Technically speaking, OrganiGram looks reasonably well positioned to challenge the $5.68/share mark—which is the all-time high—in the coming days. There’s not much in the way of resistance until the $5.30-5.40/share level (double top closing highs), which is where prices topped out so far today. On the downside, $5.00/share should provide relatively staunch support. Again, the robust volume profile and relative strength following Canopy’s gap-and-drop bodes well for bulls in the near term.

Overall, OrganiGram’s strength can be attributed to several factors.

It’s considered among the likeliest takeover targets remaining in the Canadian cannabis space today. Many analysts site a favorable valuation profile, strong east coast presence and developing product portfolio as reasons why the company may be attractive to potential suitor.

The company has also maintained an active news cycle recently, which remains an important catalyst driving prices. Unlike numerous other LPs out there, OrganiGram’s releases have been material and portend a clear, structured business evolution.

OrganiGram CEO Greg Engel talks about recent company news, investor interest, and future production capacity

Within the past month, the company has announced a first international expansion investment, unveiled a suite of new products, receives permit to export medical cannabis to Australia, and closed separate deals with Hyasynth Biologicals Inc. and Eviana Health Corporation. In this market, not only does company activity matter, but quality as well.

How much gas OrganiGram has left in the tank here in anyone’s guess. Prices have appreciated ↑61.58% in more or less a straight line upward since early April. But with a consolidation wave washing upon the industry (perhaps soon to include TGOD), fantastic volume profile and an abundant stream of material business releases pounding the newswires, prospects for further near term appreciation look positive—provided the sector holds up of course.

Benjamin A. Smith

Benjamin A. Smith

Ben is a research analyst and capital markets professional with nearly 20 years of experience. His areas of expertise are broad-based, and include extensive knowledge of macro economics, stock/derivative trading, commodity complexes, cryptocurrencies and technical/quant analysis. He also maintains an particular affinity for U.S. politics and the macro-regulatory environment facing...
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bsmith@midasletter.com |

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