I am probably going to buy some shares of this Cannabis Company. Here is why.

I like this company and I am considering buying some shares.

OrganiGram Holdings (OGRMF) is a Canadian company. The company grows and sells medical marijuana and products includes different strains and oils. They are also in the vaporizer business. The reason why I think this company may have a great future is pretty simple. Unlike most cannabis companies, they actually make money!

As you are well aware, there is a frenzy occurring in the legal cannabis markets. You can’t turn on the news or surf the Web without coming across numerous stories about the industry. But it is important to understand that most of the cannabis companies are losing money and have no realistic future prospects.

Consider all of the companies that are trading for literally fractions of a penny. Most of these companies will eventually become unable to raise money to run their businesses and will be bankrupt. Even well known companies like Tilray and General Cannabis are losing money.

This type of phenomenon is not new. It has occurred many times throughout history when an innovative new industry is formed. For example, when cars were invented there were soon over 300 companies that produced them. Eventually there were three. The same type of consolidation happened in the internet boom.

OrganiGram’s profit trend is headed in the right direction. In 2014 the company lost (.52) per share and in 2015 it lost (.02) per share. 2016 was a break-even year and in 2017 the loss was (.11) per share. Last year, Organigram became profitable and reported earnings of .17 per share. Analysts estimate that they will earn even more than that this year.

Another reason why I like this company’s potential because 11 analysts at the Wall Street Banks follow it, and the average price target is $11.65.

To learn more about OrganiGram and other things happening in the Cannabis markets please check out this weeks Kronical.