Marijuana stocks including the best/worst to invest in

Published Oct 4, 2019 11:00 a.m. ET
iStock / Darren415

The legalization of marijuana has prompted more companies to become public. Others have increased their mergers and acquisitions in Canada and the USA. Using the tactic of merging smaller businesses has become a strategy for cannabis companies to attempt to stay ahead of their competitors.

Best Canadian marijuana stocks to look at for a promising outlook

1. Aphria (APHA)
The decisive move to partner with Southern Glazer, one of the largest spirits and wine distributors in North America. As Canada's third-largest licensed cannabis producer, they have marketed different types of consumers around the world. The approach is to build a lasting presence in the key markets.

2. WeedMD (WDDMF)
WeedMD recently reported more than 8 million in net revenues for its second quarter, and that number is expected to grow exponentially in 2020. The company has visible growth prospects, and proudly boasts an enormous cannabis concentrate footprint along with significant sized outdoor growing facilities.

American marijuana stocks to invest in today that show promise

1. Plus Products (PLPRF)
Plus Products is one of the largest edible manufacturers and distributors in California. This marijuana stock is undervalued right now but has a growing level of cash, which leaves the company is in an excellent position to expand into other markets in 2020.

2. iAnthus Capital Holdings (ITHUF)
iAnthus has operations in various states, including Colorado, New Mexico, Massachusetts, and New York. This company fills all the positions for success well, as it is well-funded with a suitable size footprint and conservative and competitive management. The acquisition of MPX Biceutical, an extraction company makes iAnthus Capital one the most significant cannabis retailers in the US on this list.

3. Curaleaf (CURLF)
CURLP operates in 12 states with 49 dispensaries along with 14 cultivation sites. The company provides a good footprint in the U.S and comes with a well-capitalized title and plan.


Here are some of the marijuana stocks that should be passed by as some of them are overvalued

1. Tilray
This company reported a first-quarter net loss of $30.3 million with a revenue of only $23 million.

2. CannTrust Holdings (CTST)
The finding of the unlicensed marijuana at the greenhouse facility in July along with the firing of CEO Peter Aceto makes this what is considered in the trade a short term unreliable stock

3. Canopy Growth (CGC)
Although CG is a dominant Canadian cannabis company its investor Constellation Brands (STZ) is quite unhappy. After sinking $4 billion for 36% of the stake, the company lost $106 million. The founder was fired as the CEO, and this company remains in the holding zone for investing.

4. Cronos Group (CRON)
Cronos Group received $1.8 billion investment from Altria, the manufacturers of Marlboro. The market cap of $14 billion is an indication that this is not a sky-rocketing stock

5. Hexo (HEXO)
HEXO earnings before interest, taxes depreciation and amortization was a loss of $1.9 million. The company is feeling the pressure and not doing well in the market.

Medical marijuana stocks are still a hot item, as consumers are discovering the health benefits of the plant, and investors are looking at the potential rewards from the cannabis companies. However, you should always do your homework before investing so that the results will be more beneficial in the end.



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