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OrganiGram OGI Stock Surges and Whether It Is a Good Buy

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D. H. Taylor
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OrganiGram OGI Stock surged on the news that British American Tobacco BTI stock giant invested in the company and they are doing a joint venture.  Is OrganiGram one of the best marijuana stocks to buy?  British American will have their own cannabis product.  Organigram Holdings has the exclusive rights to produce the cannabis for BAT.  This kind of deal will add significant volume to OrganiGram's production.  With economies of scale, OrganiGram's financials will improve dramatically making this a cannabis company that will land nicely in the Complete List of Top 100 Cannabis Companies.  You can learn how to learn what you need to know to get started in cannabis investing.

OrganiGram OGI Stock Putting Together A Solid Company

Even without the deal, OrganiGram was putting together an encouraging business.  Over the past several quarters, they had achieved cash flow from operations profitability.  This is a key milestone for a new-ish company to achieve.  Cash flow from operations is defined as being profitable from a gross margin perspective.  From there, as a company adds in additional revenues, the operating profits continue to increase.  That would add to the total bottom line.

Then, you factor in the new joint venture.  Effectively, this is a private label deal where all OrganiGram does is produce the products.  Then, British American is free to promote their products on its own.  Keep in mind, this is an $85B company by market capitalization.  They have the capabilities with distribution and sales & marketing to promote any products in a significant manner.

Given all of this news, I wanted to break down the latest earnings releases and determine where OrganiGram is now, its current trajectory, and then try and factor in the new developments.


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