When looking for marijuana stocks to buy, it can at times be difficult to set one company apart from another. This is due to the high amount of competition that is inherently in the cannabis industry. With so many companies working to get to the top, how can we identify which companies are worth watching? Well, there are a few factors that stand out when looking for a marijuana stock to watch. These include both what to know about one’s own investor style, and what to know about a given pot stock.
Initially, one should understand how they wish to invest and what the goal is. This could be long term investing or short term swing trading. Both ways present different opportunities when investing in pot stocks. When looking at a company, the most important thing is to understand all of the information available about the given business. This means going through all of the data, and researching to the highest degree. With the right information at hand, choosing a pot stock can become much easier than previously imagined.
An Alternative Marijuana Stock to Watch
Scotts Miracle-Gro (SMG Stock Report) is one of the most popular options for pot stock investors looking for alternative investments in the industry. The company did have quite a rough year during 2018, but in the 2019 year, it clocked in around 70% in gains for the twelve-month period. This is quite a large amount considering the majority of other pot stocks witnessed big losses during the same time period. For those who don’t know, the company is a producer of gardening solutions the everyday consumer.
With its subsidiary, Hawthorne Gardening aimed at the hydroponic market specifically, the company has been able to greater tap into the cannabis market. During 2019, Hawthorne Gardening was one of the biggest drivers of success for the company. This is not to say that the original business was not profitable, but Hawthorne was increasingly successful. For these reasons among others, Scotts Miracle-Gro remains a promising marijuana stock to watch moving into the new year.
An Ancillary Marijuana Stock to Watch
Innovative Industrial Properties (IIPR Stock Report) is another popular pot stocks in the alternative market. The company has made headlines as a REIT, which means that it buys facilities and then leases them out to those who wish to grow cannabis. This has resulted in a highly predictable revenue stream. The predictability comes from the fact that the majority of the contracts it has been for at least 15 years if not more.
This means that moving into the future, the hopes are that the company can simply begin to purchase more facilities for lease in the market. With 46 facilities spanning as many as 14 states, the company has undergone some serious growth. Right now, IIPR remains one of the more interesting non-pot pot stocks in the industry. Moving forward, the hopes are that the company can keep up with profitability.