Why Fire & Flower (TSX:FAF) Stock Jumped 12% on Monday

Fire & Flower (TSX:FAF) stock hit 52-week highs after a share consolidation and more good news coming the company’s way for investors.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published December 6, 2021 1:18 pm EST

| More on: FAF

Cannabis stocks continue to hit 52-week lows practically across the board. Fire & Flower Holdings (TSX:FAF) managed to recover some of its losses on Monday, jumping 12% in morning trading.

What happened?

Fire & Flower stock rose about 12% on Monday, back to share prices seen last Wednesday in the beginning of the December. This comes after the cannabis stock announced milestones that included adding its PotGuide and Wikileaf to online cannabis retailers on top of consolidating shares.

Its products can now be purchased and fulfilled throughout Ontario, Manitoba, British Columbia, Saskatchewan, and, soon, Alberta. This comes on top of several new announcements made in the last month. These have sent the cannabis stock on a major growth path towards becoming the discount cannabis retailer.

So what?

In the last month alone, Fire & Flower stock announced several new items for its growth strategy. This includes a potential listing on the Nasdaq, which led to the consolidation of shares on Dec. 1. This is a major move towards listing on the United States index, as the company continues to expand in the United States.

These moves are the latest in the company’s growth strategy, where it also announced a partnership with Alimentation Couche-Tard in October. Fire & Flower stock will partner with the parent company of Circle K stores to open new retail locations next door. Alimentation has locations across North America, including the U.S., so major expansion is already in the works.

Now what?

Fire & Flower stock remains one of the strongest cannabis stocks in the industry at a time when many stocks are collapsing all around it. Shares are now at 52-week highs after the price consolidation.

Analysts continue to see it as a great deal in the cannabis industry if you’re willing to be patient and wait for U.S. legalization. But even still, the $202 million cannabis retailer has several growth initiatives underway for solid revenue. Creating store locations next to every Circle K, a Nasdaq listing, and more products online create more earnings opportunities. And that’s more than many other cannabis stocks can claim.

Shares of currently trade at 52-week highs at $5.64 per share as of writing.