Flora Growth (FLGC, $0.26) has a new growth opportunity via Franchise Global Health acquisition
Flora Growth Corp. is beginning 2023 with a major acquisition. As 2022 ended, Flora completed the acquisition of Franchise Global Health. Franchise Global Health is a Canadian cannabis company with primary operations in Germany, and is the owner of the first German medical cannabis import and distribution license.
This acquisition potentially boosts Flora’s access to Germany’s cannabis market and over 1,200 pharmacies. Some estimate suggests that the German medical cannabis market will surpass $900 million by 2025. Even Franchise Global Health could possibly benefit from the deal, in its ability to meet growing demand. Franchise Global Health’s suppliers were only able to deliver around 4 kilos every 8 weeks when the company had a demand of over 100 kilos every month.
FLGC sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for FLGC moved below the 200-day moving average on January 10, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on January 07, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on FLGC as a result. In of 65 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FLGC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for FLGC entered a downward trend on February 03, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 15 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The Moving Average Convergence Divergence (MACD) for FLGC just turned positive on February 03, 2025. Looking at past instances where FLGC's MACD turned positive, the stock continued to rise in of 24 cases over the following month. The odds of a continued upward trend are .
FLGC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.295) is normal, around the industry mean (59.720). P/E Ratio (0.000) is within average values for comparable stocks, (89.452). FLGC's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.987). Dividend Yield (0.000) settles around the average of (0.122) among similar stocks. P/S Ratio (0.191) is also within normal values, averaging (19.828).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. FLGC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FLGC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
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