money making marijuana stocks

The ancillary cannabis market is one of the most predictable and fastest-growing areas of the industry. With only a few major marijuana stocks occupying this space, it seems as though most investors often overlook their potential. Of course, not every ancillary pot stock is worth watching. Only a few of the companies within this side of the cannabis industry have interesting business models and forward-thinking in place. Within the ancillary cannabis market are several sub-sectors that all act as aids to the overall cannabis industry.

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These sub-markets could be anything from banking and financing services all the way to product producers and more. Because of the broad scope of the ancillary market, it is definitely worth doing the research to find which ones are worth watching. There are several aspects to look for when searching for one of these companies.

First, the amount of free-flowing cash it has on hand. In the current state of the market, free cash simply means survival. Companies that have large negative balance sheets could be at risk of coming into issues later down the road. On the other hand, those with large amounts of cash have the time to wait out this volatility storm. But with that in mind, these are two leading cannabis stocks to watch right now.

A Cannabis Stock Play for the Digital Market

Namaste Technologies Inc. (NXTTF Stock Report) has received little in terms of popularity in the past few months despite it having quite a lot of potential. After falling in value by around 35% during February, the company quickly came back posting April gains north of 25%. For those who don’t know, the company provides an online platform for cannabis products and other similar goods to be sold to the public. In addition, the company is a 49% owner of Choklat, an edibles manufacturing business.

In the beginning of the year, Health Canada announced that it would allow the company to begin selling its edibles in the Canadian cannabis market. CEO of Namaste stated soon after, we believe there is pent-up demand for cannabis-infused edible products on a national scale. Choklat is one of the first food processors in Canada to receive its processing license from Health Canada. Because of this and the aforementioned factors, the company continues to look like a marijuana stock to watch moving forward.

The Obvious Ancillary Pot Stock

KushCo Holdings Inc. (KSHB Stock Report) is one of the most popular ancillary pot stocks in the market. The company began its life as a product packaging provider. But, it quickly realized the potential money to be made with selling actual cannabis products and services. Since that time, it has entered into the vaporizer market by selling vape pens and other accessories used for vaping. During its most recent first quarter, the company shot up in revenue by almost 40%. This represents a year over year number of around $35 million. KSHB stock

The company did hit a rough patch toward the beginning of this year as the vaping crisis seemed to take a toll on its profits. But, with less vaping related illnesses in the past few months, it seems as though people are once again buying vaporizer products. In addition, the company has stated that it is working to ensure its products are of the utmost safety measures. But, the companies true value lies in the fact that it is one of the only large cannabis stocks doing what it is doing. Because of that, its value makes it an interesting pot stock to watch.

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