Can These Alternative Pot Stocks Keep Investor Interest High?
Often times, investors only tend to focus on the top two or three marijuana stocks by market cap. This includes companies like Canopy Growth Corp. (CGC Stock Report), Aphria Inc. (APHA Stock Report), and Tilray Inc. (TLRY Stock Report). While these pot stocks can be good choices, investors should note that there are plenty of pot stocks to watch. This includes companies that work in the ancillary cannabis industry as well as the pharmaceutical and derivatives market. If we look at the cannabis industry wholly, we see that it is made up of several sectors.
[Read More]
These sectors all have varying degrees of volatility, and they all have different levels of potential value. It is up to us as investors to research the industry enough to where we can put together a list of pot stocks to watch. This list should be comprised of companies that fit an investors unique investing style. While there are plenty of pot stocks to choose from, every investor has different preferences for what they like to invest in. Whether that is low volatility or the opposite, investors should first make sure that they know what they are looking for. With that in mind, here are two non-pure play marijuana stocks to watch.
Marijuana Stock to Watch: GW Pharmaceuticals Inc.
GW Pharmaceuticals Inc. (GWPH Stock Report) is one of the most popular non-pure play pot stocks in the industry. As its name suggests, GW Pharmaceuticals is a pharmaceutical company working on producing new drugs utilizing cannabis compounds. In the past few years, the company has seen tremendous success with its drug known as Sativex. For those who don’t know, Sativex is used to treat spasms in those who suffer from multiple sclerosis. While there are other treatments for this illness, Sativex has shown itself to be one of the best pharmaceuticals in its category.
Earlier in 2020, the FDA in the U.S. took GW’s other drug, Epidiolex off of the list of scheduled narcotics. This means that it can be used in a much broader way around the country. Because it is not a pure play pot stock, GWPH stock is much less volatile than many of the larger companies in the cannabis industry. This means that for investors who want a more stable pot stock to watch, GWPH stock could be an interesting one to look at. So far in 2020, shares of GWPH stock are down by around 8%, but this is not a big deal considering other companies losses in the industry. With this in mind, GWPH stock remains a pot stock to watch.
Marijuana Stock to Watch: Constellation Brands Inc.
Constellation Brands Inc. (STZ Stock Report) is another one of the leaders when it comes to alternative marijuana stocks. But, STZ stock is very different to GWPH stock. While GW Pharmaceuticals does work with the cannabis plant itself, Constellation Brands is only a cannabis stock due to its investments in the cannabis industry. Outside of this, the company is one of the largest producers of alcoholic beverages in the world. If you drink alcohol, you definitely have heard of Constellation’s brands. This includes Corona, Modelo, Svedka and more. Back in 2018, the company took a 38% stake in Canopy Growth Corp. for a large chunk of change. This investment helped to give Canopy Growth the capital it needed to continue growing.
The goal with this investment was to work on the production of cannabis-infused beverages. And who better to partner with for Canopy Growth than the behemoth beverage producer itself. Although these beverages have not yet come to fruition, the pair are still working tirelessly on producing profits. Constellation Brands has in the meantime continued to benefit from increased alcohol sales due to Covid-19. While investing in CGC stock itself can be quite risky, many investors lean toward STZ stock due to it having less risk than the former. With that in mind, it continues to be touted as being a marijuana stock to watch.
Should Investors Watch These 2 Marijuana Stocks?
The short answer is again, that it comes down to the individual investors. While swing traders and day traders may steer clear of these less volatile pot stocks, those who want a long term investment may want to check these two companies out. Both of these pot stocks also have other business opportunities that they are working on outside of the cannabis industry. This means that they can be considered more stable plays than with traditional pure play pot stocks. With this in mind, these two companies do have some risk associated as they are considered marijuana stocks. But, with so much going for them in long term, investors should continue to keep a close eye on these pot stocks to watch.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
