Which Pot Stocks To Buy Are Right For Your Portfolio?
Currently, the month of October has reminded cannabis investors how volatile leading pot stocks can be. As the month progresses market conditions have made pot stocks fluctuate in price greatly. For example, top marijuana stocks like Aphria Inc. (APHA Stock Report) was trending higher in anticipation of its earnings report. But negative financial reports have now given away those 18% gains. As a result of Aphria’s report on October 15th, many other top Canadian marijuana stocks also took a hit during that time. Watching top pot stocks for these dips can help investors find good positions to make profits. While many investors prefer to buy stocks with less volatility, there are some traders that take advantage of the momentum.
For those that don’t know swing traders, day traders, and option traders are growing groups of investors that use stock volatility to make their money. Generally speaking, these investors look for price fluctuations in marijuana stocks and try to capitalize on the momentum whether the price rises or falls. Usually, these positions are short term holds that range from a few days to a matter of minutes. Although considered riskier than traditional trading more people have been using this style of investing.
Are There Good Long Term Marijuana Stocks?
Regardless, of your personal style of trading, some marijuana stocks like Innovative Industrial Properties, Inc. (IIPR Stock Report) could also offer investors long-term options with dividends for shareholders. These types of ancillary pot stocks are a bit more stable than their pure-play counterparts and could be a possible marijuana stock to buy for the long term. For the most part, the cannabis industry has a variety of opportunities for any investor or style of trading. But with volatility in the sector let’s look at 2 pot stocks that have had recent swings in stock price.
Marijuana Stock to Buy or Avoid: Harvest Health & Recreation Inc.
Harvest Health & Recreation Inc. (HRVSF Stock Report) is a vertically integrated MSO founded in Arizona in 2011. Presently having 37 retail locations and 12 cultivation & processing facilities, the company has plans to expand across several states in the U.S. Currently, it has dispensaries in Arizona, Florida, California, and Pennsylvania to name a few. As increased sales drive growth for the company it has been demonstrating progress towards profitability. In fact, the company had an increase in second-quarter sales of 109% year over year and 26% growth sequentially. Although Harvest has been improving its balance sheet HRVSF stock has become volatile in recent trading.
HRVSF stock rose in share price of over 20% on October 21st and was briefly halted in trading action. Some analysts believe it was due to investors with short positions having to cover after the company announced news of a $40 million bought deal financed by Eight Capital, together with Canaccord Genuity Corp. Although the stock went up because of the news it has recently gone back down over 15% today. But with federal regulations on the eve of becoming preferable for cannabis industry growth look for Harvest to capitalize on the market.
Marijuana Stock to Buy or Avoid: Planet 13 Holdings Inc.
Planet 13 Holdings Inc. (PLNHF Stock Report) is a vertically integrated cultivator and producer of cannabis-infused products. The Nevada based company is known for its prized location on the Las Vegas strip properly named the Super Store. In detail, the location serves an average of 1625 customers a day with an average ticket price of $125. Recently in October, the company announced Q3 preliminary revenue of $22.8 million an increase of 110% over Q2 of 2020. Since this has been the best quarter in the company’s history its strength has sparked investor interest in the stock.
PLNHF stock has shown significant gains for the month of October. While the stock began the month trading around $2.75 a share a decent upside was realized by mid-October. With a recent high on October 19th of $3.97 a share, the stock has over 20% gains for the month. Year to date PLNHF stock has been on an uptrend since its March lows giving shareholders a good return on investment. While Planet 13 continues building other Super Stores in popular tourist locations, this unique play is a marijuana stock to watch.
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