Investing in Cannabis Stocks has Risk and Reward Opportunities
Cannabis stocks are increasing in popularity as the industry is expected to grow into a multi-billion dollar market within the next few years. However, many are still hesitant to invest because of the status of the legalization of marijuana at the federal level of government.
Here you’ll find more detail about cannabis stocks and the stock market and what to look for when considering investing in cannabis stocks.
The term “cannabis stock” can refer to any investment that has something to do with marijuana or hemp products, whether a medical marijuana producer, a medicinal CBD oil distributor, or an ancillary product manufacturer. It also includes companies that provide services to these businesses.
Cannabis stocks are on the rise, and there are hundreds to choose from; however, as with all investments, it’s important to do your research before you take the plunge into this relatively new and volatile industry.
Types of Cannabis Stocks
There are two types of cannabis stock companies: those that directly produce or distribute marijuana and provide products or services to support their operations. Some examples include:
Cultivators/producers – Growers and producers of cannabis plants and derivatives (for example, Aurora Cannabis Inc.,
5 Cannabis Stocks that are Winning
With the legalization of cannabis in 19 states throughout America, the floodgates have opened for investors looking to capitalize on investing in the cannabis industry. With so many stocks to choose from, it can be hard to decide which is best.
While we are not offering financial advice, we have rounded up some information for you to review on some of the fastest growing companies in the cannabis industry today.
Cronos Group (TSX: CRON)(NASDAQ: CRON)–Cronos is a well-known name in the industry, with a market cap of $2.7 billion. The company has secured significant deals this year, including the acquisition of Redwood Holding Group (including its Lord Jones brand) and investment from Altria Group Inc. In addition, Cronos has been working on creating new brands, such as Spinach, with plans to launch more in the coming months.
Canopy Growth Corp. (TSX: WEED)(NYSE: CGC)-Canopy Growth has had a transformative year, with Constellation Brands investing nearly $4 billion in the company and taking a 38% stake. The company is arguably now one of the largest cannabis companies out there — at least by market share and production capacity. Canopy will likely continue to grow over time through internal initiatives and acquisitions.
Tilray (NASDAQ: TLRY) is one of the fastest-growing marijuana companies in Canada. In its most recent quarter, the company’s revenue soared by more than 200% year over year as demand for its products remained strong. Tilray also has a strong presence in international medical cannabis markets, with operations in 12 countries spread across five continents. That global presence gives it an advantage over other marijuana growers in Canada that only operate domestically for now.
Aleafia Health (TSX: ALEF)(OTC: ALFAF) is one of the most exciting marijuana companies today. It’s an international cannabis company with operations in Canada and Australia, but its biggest advantage is its network of German medical clinics. The company has signed agreements to supply medical cannabis products to German patients for years, giving it a built-in customer base that few other growers can match.
Vibe Growth Corporation (CSE: VIBE) (OTCQX: VIBEF) (FSE: A061) (the “Company” or “Vibe”) Vibe Growth Corporation and its cannabis retail brand, Vibe By California, is a trusted, vertically integrated cannabis enterprise with 7 retail dispensaries; cannabis greenhouse cultivation in 4 regions of California; premium indoor cultivation; commercial cannabis distribution; brand sales and marketing; e-commerce platform; home delivery; and Hype Cannabis Co. marijuana and Vibe CBD (cannabidiol) products. Vibe is focused on maximizing shareholder value through accelerating organic growth, opportunistic acquisitions, distressed workouts, and new license applications. The Company operates retail and e-commerce under its iconic Vibe By California brand.