Namaste Stock Gains Momentum on Value Buying (TSXV:N) (OTCQB:NXTTF)

coronavirus pandemic has unleashed a lot of volatility in the cannabis sector,
and consequently, many of the stocks have performed poorly in recent days.
However, at the same time, e-commerce stocks like Amazon and Spotify have
performed well. Hence, it makes the cannabis e-commerce marketplace operator
Namaste Technologies (TSXV:N) (OTCQB:NXTTF) 
an interesting proposition.

What to Expect Now?

stock has performed poorly and has lost as much as 91% of its value in 18
months. The company operates as many as 24 websites and also has five
warehouses. Namaste is available in as many as 20 nations, and as such, it has
an extensive operation.

sells a wide range of products starting from the dried flower, vaporizers,
hemp-based pet supplements, and bongs, among others. It is also trying to
deploy artificial intelligence in order to give customers a better experience.
The legalization of ‘Cannabis 2.0’ products is going to swell the variety of
products considerably, and the growth in this space is expected to be a major
positive for Namaste. Its subsidiary Choklat is going to manufacture
cannabis-based chocolates and beverages. These products will allow Namaste to
enter the CBD based edibles market in a big way.

aspires to be the Amazon of the cannabis industry, and considering the fact
that there are 200 licenses cultivators in Canada alone, there is an
opportunity for growth. In the previous four quarters, the company reported
$17.5 million worth of sales, and at the same time, it is not yet profitable.
Sales fell 9% over the previous three quarters. In order to attract investors,
the company would need to grow its sales and also reduce its losses

company’s business model has a lot of promises, but at the same time, it cannot
be ignored that at this point in time, Namaste’s performance leaves a lot to be
desired. Hence, investors could stay away from the Namaste stock at this point
despite its steep decline.

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