Apr 10, 2021 at 6:10AM Follow @omzitkus
The marijuana sector is rapidly evolving. Although the drug is still illegal at the federal level, 16 states and Washington, D.C. have approved the drug for adult-use, and over 30 states have approved the drug for medical use. The
Horizons Marijuana Life Sciences ETF (OTC:HMLSF) has run up over 100% over the past 12 months. This has left pot stock pickers on the edge of their seats, itching to get in on what s all but guaranteed to be stellar growth in the industry.
Many state governments now have to decide exactly how to legalize the drug, asking questions including: For whom is marijuana use legal, and for what use? Dr. Chanda Macias, a medical cannabis advocate, researcher, and dispensary owner, joined Olivia Zitkus and Corinne Cardina on a
Fire & Flower (OTC:FFLW.F) are all stocks that are much better and safer buys for cannabis investors.
Image source: Getty Images.
1. Planet 13
One of the reasons I love Planet 13 is for the simplicity of its operations. The company isn t going out and trying to expand all over the world and acquiring businesses left and right. Instead, Planet 13 has been carefully building the largest dispensary on the planet in Las Vegas ( SuperStore ), and slowly moving out to other markets. That is not only a safer model, but also a more cost-effective one.
The company released its year-end results on April 5, and its sales of $70.5 million for all of 2020 grew 10.8% from the previous year. Its adjusted EBITDA profit of $8.9 million was down 12.7% from a year ago in what was still a strong performance for the cannabis company, despite shutdowns and lockdowns limiting the number of people who could visit its Las Vegas-based dispensary.
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Apr 6, 2021 at 6:15AM
Cannabis companies haven t made many deals outside of its own industry, but a couple of the more notable ones have involved tobacco.
Altria (NYSE:MO) invested $1.8 billion into
Cronos
Group (NASDAQ:CRON) back in 2018 to take a 45% stake in its business. And last month,
British American Tobacco (NYSE:BTI) invested roughly $176 million in
OrganiGram Holdings (NASDAQ:OGI), which represents a 20% stake in the cannabis company.
Not only is the cannabis industry moving further into the mainstream as more states legalize marijuana, but there s also a growing pressure on the tobacco industry to diversify its offerings. And a new projection could put pressure on tobacco companies to act sooner rather than later.
Are you looking for a cannabis stock that can double in value? The
Horizons Marijuana Life Sciences ETF is already up more than 55% this year, and many stocks are trading at or near their highs. And that means finding an attractively priced investment in the industry isn t getting any easier.
However, there are a couple of pot stocks trading below $5 that you will want to put on your watchlist right now:
Harvest Health & Recreation (OTC:HRVSF) and
Auxly Cannabis
Group (OTC:CBWTF). Given their modest valuations and attractive growth opportunities ahead, it wouldn t be surprising to see these stocks double in value within the next year.