Marijuana stocks are heating up as summer nears its end and investors have taken notice of this trend.
We expect Canadian marijuana stocks to benefit significantly from this trend and want to highlight three companies that investors need to watch
Wisconsin Senator Invests in Canopy Growth
Canopy Growth (WEED.TO) (TWMJF) is one of the most attractive marijuana investment opportunities and the company has received an investment from Wisconsin Republican Senator Frank Lasee. According to a report from the USA Today, the Senator purchased $5,000 to $50,000 shares of the licensed medical marijuana producer.
The licensed marijuana producer has the largest market share in all Canada and it is also levered to the legal marijuana market in Germany, Australia, and Chile. We continue to view Canopy Growth as one of the best opportunities and believe it is a stock that every investor needs to watch.
MedReleaf Receives Favorable Response to Earnings
MedReleaf (LEAF.TO) (MEDFF), a leading Canadian licensed medical marijuana producer, released its financial results for the first quarter fiscal 2018 which ended on June 30th. Although revenue increased by almost 20% when compared to the prior quarter, net income was lower by almost $3 million.
The lower net income was primarily due to increased operating costs partially offset by increased sales and gross profit. The main driver of the higher operating costs was IPO related expenses, which amounted to $2.5 million.
The market responded favorably to these results and MedReleaf is trending higher this week. We believe this is a company that will continue to grow at above-average rates and will keep an eye on the shares.
Doja Continues to Trade Lower Post-IPO
There was a lot of hype around the DOJA Cannabis Company (DOJA.CN) (DJACF) IPO, but it has failed to live up to expectations.
DOJA has fallen by more than 20% from the price the shares started trading at and we remain cautious with the company at current levels. DOJA is trading below $0.60 after falling another 5% yesterday and the shares have fallen more than 40% from its highs last week.
While we are favorable on the industry Doja is levered to, the company sells a product for a significant premium and we do not believe the market has responded well to the Napa of the North’s model.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
