KushCo Holdings (KSHB) recently announced their earnings, and there was little not to like. Here are the highlights:

• Revenue up 221% year over year
• Gross profit up 100% year over year
• Gross margins up 490 basis points quarter over quarter

On top of that, the company also announced that they are filing to uplist from the over-the-counter (OTC) exchange to the Nasdaq. What does that mean? The most notable thing is that it should make the stock more appealing to institutional investors who might shy away from the OTC exchange.

Yet, despite all of the good news, the stock is down today. In fact, the performance of the stock has been fairly pedestrian since I’ve bought it and has barely beaten the market in that time (although it has seen a lot of ups and downs).

I’m not sure why the market has had such a tame reaction to KushCo’s earnings, but I remain high (no pun intended) on the company going forward. I still see full marijuana legalization in the United States to be a question of “when” instead of “if”, and if the company can continue to seize market share I like it to outperform the market over the coming years. I’m not necessarily looking to buy more shares at this time, but I am considering adding it to my watchlist if the business continues to grow at this rate and the stock continues to be relatively flat.