Golden Leaf Stock Could Profit One Type of Trader

Golden Leaf Holdings has fallen to record lows. Now trading at just three cents per share, many wonder whether any investment potential exists for GLDFF stock.

However, the company has appointed experts in global branding to the CEO and President positions. This alone could make Golden Leaf stock a profitable trade, or perhaps more.

GLDFF Stock Has Fallen Due To Financials

GLDFF debuted in early 2016 at around 36 cents per share in early 2016. It initially benefitted from an uptick as investors had begun to discover marijuana stocks, taking GLDFF to almost 69 cents per share in October of that year.

Unfortunately, since that time GLDFF stock has seen little else but steady declines. It has not traded above 24 cents per share over the last year. Even worse, it has now fallen to three cents per share, near record lows.

Traders should remember that while a full recovery remains the ideal, they do not necessarily need that to happen to make a substantial profit from GLDFF stock.

In Golden Leaf’s defense, it continues to increase revenues. In its second quarter, revenue came in at $4.3 million, an increase of 17% from the same quarter last year, when the company brought in $3.7 million.

Still, this is a $15 million firm with $20 million in debt who lost more than $22.4 million in the last year alone. With only about $5.25 million in cash, this leaves Golden Leaf with an uncertain future.

However, traders should remember that while a full recovery remains the ideal, they do not necessarily need that to happen to make a substantial profit from GLDFF stock.

New Management Could Help Golden Leaf Brands

Also, management has attracted some talent that could breathe new life into this company. The company just appointed Stan Grissinger as its President. Mr. Grissigner spent 20 years at Nike , where he conducted international business development and brought Nike into golf.

Just before that, Golden Leaf hired Jeffrey Yapp as CEO. Before coming to Golden Leaf, he worked with the global brands of companies such as Microsoft  and PepsiCo  and helped launch products such as Guitar Hero and the re-launch of “Star Wars.” Although these management changes do not guarantee a turnaround, they could help revive Golden Leaf’s brands, and, by extension, GLDFF stock.

GLDFF Stock Could Benefit Speculative Traders

I see a case for buying GLDFF stock with speculative money. To be sure, the financial picture appears bleak with the stock at three cents per share.

However, as stated earlier, a move to the 52-week alone would bring an eight-fold return. Moreover, its new top management has extensive experience with global branding. This could revive interest in its Chalice Farms, Golden, Jackpot, and other brands that define the company. Such buzz around its products could deliver massive returns from current levels.

If the company could repair its balance sheets, that would best serve shareholders. Still, just by stoking some interest, a trader could profit handsomely from GLDFF stock.

 

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Will Healy
Will Healy is a freelance business and financial writer based in the Dallas area. In addition to marijuana, energy, and mining stocks, he has also written about real estate, insurance, personal finance, and macroeconomics.In addition to Capital 10X, his articles have appeared on sites such as InvestorPlace, Yahoo! Finance, MSN Money, Kiplinger’s Personal Finance, GOBankingRates, and Seeking Alpha.Will holds a B.S. in Journalism from Texas A&M University, an M.S. in Geography from the University of North Texas, and an MBA from the University of Texas at Dallas.Phone: 416-721-8257. Address: 682 Indian Road Toronto, Ontario M6P 2C9.

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