Our GreenGro Technologies Stock Prediction in 2019 (Buy or Sell?)
Some of the best marijuana stocks are indirect plays on the industry. If pot goes bust, these firms can still rely on other core operations.
GreenGro Technologies (OTC: GRNH) is an indirect marijuana play getting investor attention these days. It’s the sort of company we call “cannabis adjacent.” These are companies that don’t grow the plant, or develop cannabis-derived pharmaceuticals, but instead are involved in some kind of support position.
Now, in the normal world of stocks, these are intriguing plays. Because they provide a form of infrastructure or support services, they can become very profitable if they execute and truly become a go-to solution.
GreenGro and many like it are not in the normal world of stocks. They are in the world of dangerous, thinly traded penny stocks that typically bring pain to investors… the kind of pain that medical marijuana can’t relieve.
They have attention now ONLY because the cannabis sector is hot.
So let it be known that GreenGro is a penny stock and as such, it’s risky. GreenGro sports a market cap of only $8.9 million, but that also means it has enormous room for growth. The stock could offer investors exponential gains. The trick is balancing risk versus reward. Is GreenGro worth a shot?
Let’s examine the pros and cons of the company, and see what 2019 has in store for it.
What Is GreenGro Technologies?
GreenGro states on its website that it “provides manufacturing and sales of green, eco-friendly, sustainable vertical cultivation systems, and facilities design. GreenGro’s products and services are targeted at consumers, and industrial farming operations. GreenGro’s products and services are designed to provide all of these customers solutions to achieve maximum efficiency, whether that be a balcony garden or industrial cultivator.”
The company claims it has expert knowledge to maximize production for every crop cycle. It has a division that focuses on hydroponics, advanced nutrients, and vertical cultivation technology systems design and sales.
GreenGro claims to have another division that offers “leading edge technologies and state-of-the-art production methods” to protect crops while generating superior, high-quality, locally grown, market-ready leafy green produce year-round in any climate.
Yes, it all seems like boilerplate. But you can see why investors are interested. The company is positioned to invade the marijuana business.
How Has GreenGro Stock Performed?
- Over the past year, GRNH shares have fallen 65% whereas the S&P 500 has lost 6%.
- Over the past two years, GRNH shares have fallen 80% whereas the S&P 500 has gained 14%.
- Over the past five years, GRNH shares have fallen 95% and the S&P 500 has gained 41%.
How Has GreenGro Performed in 2017/2018?
- In 2017, GRNH lost 18% whereas the S&P 500 gained 19%.
- In 2018, GRNH lost 65% whereas the S&P 500 lost 6%.
Who Are GreenGro Rivals?
To make our GRNH stock prediction, we must look at GreenGro’s main competitors.
AeroGrow International (OTC: AERO)
AeroGrow also operates in the hydroponics business. The difference is that AERO has the massive Scotts Miracle-Gro (NYSE: SMG) name behind them because Scotts owns 80% of the company.
AeroGrow develops, markets, and sells (both retail and wholesale) indoor garden systems. The firm uses proprietary seed kits to grow flowers and vegetables, targeting both experienced and amateur gardeners. The firm supplements its selection by selling support accessories, such as lights.
AeroGrow also sells pre-seeded bio-grow seed pods, and computerized systems, as well as its “rainforest” nutrient delivery system.
With Scotts backing the company, to the point where the smaller company’s products are even named Miracle-Gro AeroGarden, AeroGrow is a competitor that could easily crush most rivals.
CannaGrow Holdings (OTC: CGRW)
Similar to GreenGro, CannaGrow is a tiny penny stock. Yes, it provides marijuana facility development, site management, and staff, but only for legal Colorado marijuana facilities. As far as we can tell, it has built only one space.
CannaGrow describes that facility as having “Colorado’s first fully probiotic, living soils grow operation where we employ a strict protocol of healthful, non-toxic methods to ensure only the cleanest yields. No chemical pesticides or fertilizer are ever used (eliminating pesticide issues) and we integrate a hybrid system of natural sunlight augmented by sophisticated supplemental lighting packages in state-of-the-art Nexus greenhouses to mitigate energy costs and produce exceptional results.”
We’re not impressed by this rhetoric. WARNING: It is a penny stock.
Future Farm Technologies (OTC: FFRMF)
Future Farm sells products that support indoor plant growth technology, including marijuana. It provides these growing services in three states, but it also produces hemp in three other states.
Future Farm services include controlled environment agriculture systems that utilize minimal land, water, and energy resources.
The vertical farming solutions and LED lighting approach are common. Future Farm also produces cannabis oil and purified distillate.
WARNING: It is a penny stock.
Will GreenGro Go Up in 2019 (Should You Buy?)
GreenGro is a dangerous penny stock with a suspicious set of SEC Filings.
But are we just being a too negative? Is there anything positive to say here?
GreenGro posted $1.51 million in revenue in fiscal year 2017, although that figure has declined to $322,000 in the first nine months of this year. The firm has $121,000 in the bank.
This video describes one of GreenGro’s key products, a fully automated greenhouse:
Will GreenGro Go Down in 2019 (Should You Sell?)
GreenGro currently trades at $0.0199. It’s a two-cent stock.
That is reason enough to avoid it. As we’ve said about similar marijuana penny stocks, the company does not solve a problem and it does not do anything special. It is operating in an environment where many other people are doing the same thing, with access to the same tools, that doesn’t require terribly much experience, and that has tons of competition.
If you bother to look at the company’s SEC filings, you’ll see that GreenGro is a train wreck…on fire.
All the company does is issue stock. There’s literally 440 million shares outstanding because the company just issues stock to pay for everything.
Our two cents is that this two-cent stock is overpriced.
Overall GreenGro Forecast and Prediction for 2019
There’s only one reason GRNH stock is even being discussed in the financial media, and that’s because marijuana stocks are all the rage.
Canada legalized recreational marijuana on the federal level in 2018 and several U.S. states have done so as well. Hordes of investors are hunting around for the next big thing in marijuana. When Tilray (NSDQ: TLRY) stock recently went crazy and flew up to $300 per share, it set off an even bigger frenzy in marijuana stocks.
Penny stocks like GreenGro are junk. So what is our GRNH stock prediction for 2019?
It will trade between zero and $0.025 per share.
And you’d have to be high to own it.