Greenlane Holdings, Inc. (NASDAQ: GNLN) late yesterday ended up marking its spot as one of the big after-hour session winners. After packing in a remarkable growth spurt during yesterday’s trade session of 14.8%, its growth trajectory staggeringly continues at present. At the close of trading, GNLN shot up in price by a whopping 48.4%, bringing in a total climb of 62%. The stock has been riding an incredible bullish wave for nearly two weeks since last Monday, stepping up 37.7% since. Focusing on the cannabis and nicotine markets, Greenlane has been seeing increasingly prevalent social media chatter, denoting high market interest.
GNLN Growth Anticipation with Earnings Conference
One reason as to why the market is driving GNLN significantly relates to an upcoming corporate conference. The company will be announcing earning figures for last year along with that of the final quarter. Given the company’s salient prospects, traders are looking to beat a GNLN growth spurt following anticipated positive results for GNLN. This bullish sentiment clearly rests on the assumption that the stock shows undervaluation based on its prospects, due to a number of indicators.
Indicators of GNLN Undervaluation:
Market participants are of the view that GNLN is undervalued, which will be reinforced once the earnings reports are released. The following indicators, in particular, have given shape to this broader market perception:
Cost-Cutting Initiatives, leading to Greenlane Profitability
Last Monday saw Greenlane announced a string of cost-saving measures, reportedly leading to a liquidity boost of $30M in total. Furthermore, management reports the measures to bring down expenses from $26.6 million to as low as $14 million per quarter.
Insider buying
Two weeks ago, an SEC filing revealed an insider buying of GNLN stocks worth $248,943 indirect ownership. The share purchase traces to the company’s general counsel, Fischer Douglas. In addition to the share purchase, the counsel further exercised a stock option to buy a further 295,084 shares in GNLN
Federal Marijuana Legalization Votes Looms Close
GNLN’s growth comes amidst a wider marijuana stock growth wave, as the federal vote pertaining to marijuana legalization approaches. A number of cannabis stocks had surged today, positioning GNLN for an explosion if the legalization vote wins in the US house of representatives.
Conclusion
GNLN is going up continuing its high growth bull from last Monday, owing to indicators of robust growth prospects. These indicators are inclusive of recent cost-cutting measures, along with an SEC filing reporting heavy insider buying. The market is looking to beat a potential growth spurt that it anticipates with tomorrow’s earnings release.
