Cannabis Stocks

Karen Berger, PharmD, Medical Writer

 

Every day in the news, I see headlines like “S & P 500 at a record high,” “Dow jumps 200 points,” and “Nasdaq closes at a record high.” 

 

While the country (and its economy) seems to be falling apart due to COVID-19 and other events, the stock market and the cannabis world is prospering. As my husband talks about stocks like Facebook, Disney, and Netflix, I wonder, what about cannabis stocks? Should we invest in marijuana? Let’s take a look at some popular cannabis stocks. 

 

But first, as a pharmacist, here’s my legal disclaimer: This is not personalized investment advice. I am not recommending any particular stocks. Consult your broker (or your spouse or another knowledgeable family member) for stock advice. 

 

Valens Company (OTCMKTS: VLNCF): Sean Williams, of the Motley Fool, recommends Valens Company, calling it “my top cannabis stock to buy in September (and hold for years to come).” With shares down 45%, Williams touts Valens as a significant player in third party extraction and expects the company to be profitable on a “recurring basis.” Valens has also partnered with Iconic Brewing Company to supply cannabis-infused beverages.1

 

Green Thumb (OTCMKTS: GTBIF): Sushree Mohanty (Motley Fool) recommends Green Thumb Industries. The company owns two retail cannabis stores (called Rise and Essence), which are now 48 storefronts in 12 states and growing. Green Thumb also manufactures and distributes medical and recreational cannabis in these stores under brand names Dogwalkers, Dr. Solomon’s, and Rythm. Mohanty talks about the “serious strides” the company has made this year: “Revenue grew by 167% to $119.6 million from the year-ago period, and sales sprung up by 16.6% from the first quarter alone.”2

 

Curaleaf (OTCMKTS: CURLF): Mohanty also recommends Curaleaf, a multi-state (23 states) cannabis company that manufactures and supplies medical and recreational cannabis. The company has made a “series of aggressive acquisitions over the past seven months…part of its strategy to remain a leader in the rapidly evolving US cannabis market.” Curaleaf operates 87 dispensaries, 22 cultivation sites, and 30 processing sites.2

 

Aphria (NASDAQ: APHA): Zhiyuan Sun of the Motley Fool recommends Canadian cannabis company Aphria. “During the last quarter of Aphria’s 2020 fiscal year, the company grew its adjusted EBITDA over 40-fold…Those are pretty tough numbers for other industry competitors to beat, especially during these uncertain times,” Sun says. Aphria maintained a 52.9% gross margin in cannabis sales. “With robust revenue growth, increasing efficiency, and a track record of realizing profits, Aphria is definitely one of the top stocks to buy for the month.”3

 

Cronos Group (NASDAQ: CRON): Sun also recommends fellow Canadian marijuana company Cronos Group, which has begun US operations, “positioning itself to ride the legalization wave.” Sun reports that “in the short six months since it began this venture, the company reported $4.4 million in revenue and a 38% gross margin, including $2.2 million of sales in the most recent quarter.” The company also has a $1.8 billion investment from Altria. Sun concludes, “For investors with a long-term horizon and who can weather through short-term business woes, Cronos is an ideal weed stock.”3

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References

 

  1. This Is the Top Cannabis Stock to Buy in September. Motley Fool Website. Available at https://www.fool.com/investing/2020/08/31/this-is-the-top-cannabis-stock-to-buy-in-september/ Accessed September 2, 2020. 

  2. 2 Best Cannabis Stocks to Buy in August. Motley Fool Website. Available at https://www.fool.com/investing/2020/08/18/2-best-cannabis-stocks-to-buy-in-august/ Accessed September 2, 2020. 

  3. 2 Top Marijuana Stocks to Watch in August. Motley Fool Website. Available at https://www.fool.com/investing/2020/08/09/2-top-marijuana-stocks-to-watch-in-august.aspx Accessed September 2, 2020.