The cannabis industry has seen better days than those of the past few months. Although this year started out with a lot of potential, many marijuana stocks have since lost billions in market value. While the majority of these pot stock losses are due to the coronavirus, the cannabis industry has a lot of inherent faults that are to blame as well. But, as cannabis investors, we are resilient to large amounts of market volatility. We are also used to pot stocks moving up and down in wild patterns.
But, it does seem as though the market may be moving toward some sort of stability point. This is characterized by less severity in the price swings between trading days. Although we are in no way out of the woods, it seems as though investors are becoming more comfortable with the current state of the industry. In the past few weeks, a few cannabis companies have come to light as pot stocks to buy, which may surprise investors.
These companies are both popular, and underground. The cannabis market does not discriminate based on size, but rather on the forward thought a company has put forth. Because of this, it makes sense to do one’s research before investing in any company. With this research in hand, making an educated decision about a cannabis stock to watch can be much easier than ever thought possible.
This Big Marijuana Stock Makes a Comeback
Tilray Inc. (TLRY Stock Report) is one of the largest cannabis stocks in the industry. In the past year or so, the company has seen a series of bad moves, make their way into how it’s stock trades. But, in the past week, we have witnessed Tilray stock shoot up by as much as 35%. The real issue stems from how cannabis stocks are traded. Most traders tend to use current news to trade rather than believing in a company’s future potential. Back in the day, Tilray came out with a lot of positive news that led to a massive spike in its stock price. Since that time, we have witnessed that price come down substantially.
But, despite its fall from grace, the company is still one of the largest producers of marijuana in the world. The company has also been working to get involved in the CBD market in a big way. But, despite all this it still looks like the company has a long way to go before its financials show a positive sign. It recently reported around $219 million in losses for its 2019 fourth quarter. This is a sizable number and should be taken into consideration when deciding whether or not Tilray is a marijuana stock to watch.
Marijuana Stock To Watch: The New Kid on the Block
Cresco Labs Inc. (CRLBF Stock Report) is one of the leading cannabis operators working out of the U.S. The company has continued to post solid gains and an equally solid balance sheet for investors to view. Cresco has also benefitted greatly from the increased demands for cannabis that have resulted from the coronavirus. The company has stated that it recently completed the construction of its newest facility based in Illinois. With this, it now has access to over 630,000 square feet of production space.
One of the things that makes it so interesting is the verticality of the company. While many multi-state operators work by selling products from other producers, Cresco produces all of its own products. This means that it has higher margins and larger sales amounts than most other cannabis producers. Its revenue has shot up by as much as 190% year-over-year through 2019 which is a very positive amount. Because of this, the company continues to be a leading cannabis stock to watch.
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