Do You Know About These Top Ancillary Cannabis Stocks?
When it comes to investing in marijuana stocks there are a few things to know. First, you want to understand the stock market and how it works. This will help you get a better footing when investing and trading cannabis stocks. Next, you want to figure out how you want to build your portfolio. For instance, do you want to be more of a long term trader or a short term one or both?
With this, you can begin to start looking for different cannabis stocks to buy. Now when on your journey you need to understand what each niche a given cannabis company is in. For example, are interested in MSO cannabis stocks that operate in other legal markets. Or are you looking for pure-play cannabis stocks that deal directly with the cannabis plant?
As well we have ancillary cannabis stocks. These cannabis companies don’t work the physical plant but rather provide services and business solutions to help other cannabis businesses. For example, some marijuana stocks work with packaging and branding as well as vapor products and various smoking items to name a few. These ancillary cannabis stocks at times see less volatility than other marijuana stocks.
Always remember investing in anything is always a risk that needs to be calculated to the best of your ability. Yet with the above steps, you can have a good starting point when looking for the best marijuana stocks in 2021. Below we will discuss some of the top ancillary marijuana stocks in the market.
Ancillary Marijuana Stocks To Watch In 2021
GrowGeneration Corp. is known as one of the top ancillary marijuana stocks to watch. The company runs its operations through a chain of hydroponic stores. With how fast the U.S. cannabis industry is expanding the need for quality cultivation supplies is becoming more evident. This where a cannabis company like GrowGeneration comes into play.
Currently, Growgen is known as the biggest specialty retail hydroponic business with a heavy focus on the cannabis industry. As of 2021 GrowGen operates 42 stores across the U.S. In recent news, the company has announced its acquisition of Grow Depot, a two-store chain in Auburn and Augusta, Maine.
“It’s a very exciting time in Maine’s adult-use market, and we’re pleased to expand our footprint in the state through our acquisition of Grow Depot, which has proudly served the Central Maine area for nearly a decade,” said Darren Lampert, GrowGeneration’s CEO. “With our expanded footprint, the Maine market is expected to generate 2021 annual revenues of over $20 million for GrowGen.”
Over the last few months, GRWG stock has picked up some nice momentum. From the start of November GRWG stock began to see a nice upward push in the market. November 2nd to the 27 GRWG stock had a nice rally that month with gains of 91 percent during that time. Much of this increase is not only due to the potential of federal cannabis reform but the increase in cannabis demand. This current demand for cannabis has left more cultivators in need of more growing supplies.
GrowGeneration Corp. Final Recap
Looking at December to January GRWG was able to keep its upward push in the market going. At the start of the new year, the company even hit new all-time highs on the 19th of January with a share price of $52.31. As it stands GrowGen is starting off the new year with a solid push in the market as they continue to be a marijuana stock to watch in 2021.
KushCo Holdings Inc.
KushCo Holdings Inc. is another top ancillary marijuana stock to watch in 2021. The company runs its business by providing ancillary products for the cannabis and CBD side of the cannabis industry. The company has sold over 1 billion products to various cannabis cultivators around the world. KushCo is working on being one of the top MSO companies in the cannabis industry. The more renowned products the company is known for is its child-resistant packaging. along with different vape hardware and technology. Last month the company reported its fiscal first-quarter for 2021.
With this report some of the key highlights that took place were KushCo was able to lock down over 20 new supply contracts for the company’s stainless steel tanks. In addition to this, the company was also able to reach a revenue of $26.8 million and positive adjusted EBITDA for the second consecutive quarter in fiscal Q1 2021. This progress amongst slight losses with the company’s net revenue didn’t stop the company from moving up in the market.
from ending the first month of the new year with some gains. At the end of December KSHB stock had a nice rally for most of January. From December 31st to the 8th of January KSHB stock had a 47 percent increase in trading. Furthermore, the gains did not stop there. January 11th to the 21st KSHB saw gains of 55 percent. Yet since then, KSHB stock has dropped from recent highs. However, if you purchased shares on the 27th you would have closed out January with a subtle 5 percent return on your investment. So far KushCo is battling through the market as some investors feel this company is still a marijuana stock to leave on their watchlist.