Reasons why now may be the perfect time to invest in cannabis

Published Aug 5, 2020 12:00 p.m. ET
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The past couple of years has been nothing but bad news for the cannabis industry. Those who chose to invest in cannabis watched helplessly as cannabis stocks succumbed to numerous drawbacks. There were many delays in the regulatory standards for the herb, and the devastating, deadly illicit market vaping disasters and many more disadvantages did not help.

The demise of many global pot stocks falling 70% or, in some cases, even more, over the period from January 2018 till March 2020, has investors looking for the light at the end of the tunnel. Do you put yourself into the category of those looking to invest in cannabis? Do you need help finding the light?

Cannabis stocks

Are any of these cannabis stocks that are worth investing in today included in your portfolio?

  • Curaleaf Holding has a special place in the branded retail cannabis shops area in the US. It holds the prestigious position of having the most significant footprint. The company managed to generate 96.5 million dollars in quarterly revenues. Sales growth was reported as 20% above the estimates given. Curaleaf is currently producing more income than Canopy Growth.

  • Green Thumb Industries has become the leader in money-making among the state operators. Revenues for Q1 are reported as 102.6M dollars. The company is competing for the best and #1 spot in Pennsylvania and Illinois.

  • Trulieve Cannabis has posted Q1 revenues of 96.1M. The company looks upon Florida as the epicenter for the US cannabinoid wellness market. This perhaps due to the state's large elderly population that uses medicinal cannabis.

  • Terrascend Corp. 20% owner of Pennsylvania wholesale cannabis market is a global cannabinoid company providing quality products. The company participates in medical cannabis and legal cannabis in both the US and Canada. The integrated company focuses on drug research cannabis devices and hemp health products.

  • Village Farms International this company is deemed as being one of the most cost-effective companies on the market today. This company is one of the few cannabis companies that have continued to be profitable. Reports of 4.2 million in Q1 mark these numbers as the fifth consecutive profitable quarter for business. Pure Sunfarms, which Village Farms owns a majority stake, is one of the leading Canadian brands in Ontario, the top-selling Canadian province in terms of selling dried flower revenues. Village farm is holding on in competing with the big boys and girls despite it being a smaller company.

The COVID-19 virus

Many lives have been disrupted due to the COVID-19 virus. Included in the disruption are businesses within the cannabis space. However, reality came to light during this time, as it became clear that certain areas needed to be addressed. Cannabis was deemed an essential service, and as such, the need for regulated and legal cannabis combined with employment and tax revenues were highlighted.

The stock market caught wind of the positive insights and began to add to the factors driving pot stocks to start to rise the green path again. When we invest in cannabis stocks as with any commodity, nothing is a sure bet. However, the mentioned companies above can make that green path more profitable for those who wish to invest in cannabis. Do your homework and invest wisely for the best rates of success.

What investors need to know about the volatility of cannabis stocks

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