Could These Two Pot Stocks Outperform the Cannabis Industry This Year?
The cannabis industry has been performing quite well compared to other industries in the past few months. Since mid-March, we have seen a large amount of upward momentum in some of the most popular marijuana stocks to watch. Some pot stocks have shot up by anywhere from 40-140% during that time period. This is not to say that all pot stocks are winners, but some definitely have a lot going for them. Within the cannabis industry, there are several places to start looking for a marijuana stock to watch. There are the pure-play pot stocks, ancillary pot stocks, and pharmaceutical pot stocks.
All of these have their ups and downs, and all have the potential for solid upward momentum. Individually, investors should look for a pot stock with a very clean balance sheet. In addition to the financials, investors should also make sure that a company has a solid future plan put in place. With these two aspects in mind, it can be much easier to narrow down a list of pot stocks to watch. All that considered, these two marijuana stocks look like interesting companies to watch moving forward.
A Canadian Marijuana Stock to Watch
WeedMD Inc. (WDDMF Stock Report) is a leading Canadian marijuana stock to watch. For those who don’t know, WDDMF stock has risen in value due to WeedMD’s business model. The company participates in the growth and distribution of marijuana for both medicinal and recreational use. Because of its broad market scope, many believe that WDDMF stock is a solid long term play. The company currently has two licensed cannabis grow facilities in Canada. One of these spans 26,000 feet while another spans as much as 136,000 square feet.
The company has also stated that it is working to expand to more than five times that amount in the next year or so. With these production facilities, WDDMF stock could rival some of the largest marijuana stocks to watch. All it needs is approval for its newest facilities from Health Canada. WeedMD produces cannabis in both indoor and outdoor spaces. This means that it can maximize the land that it has access to. With a market cap north of $130 million, WeedMD remains one of the leading small cap pot stocks to watch.
A Leading Extraction Service Provider Pot Stock
Valens GroWorks Corp. (VLNCF Stock Report) is a more well-known marijuana stock to watch. The company operates purely as an extraction provider which has helped to specialize in the market it operates in. Because of its large processing capacity, many believe that VLNCF stock could benefit greatly in the next few years. The company has stated that it has an extraction capacity of around 425,000 kilograms per year. What makes VLNCF stock so interesting is that Valens has contracts with some of the largest marijuana stocks to watch.
This includes Canopy Growth Corp. (NYSE:CGC) and more. In addition to this, VLNCF stock showed very solid results in its most recent financial report. The company reported revenue of around $16 million with an adjusted EBITDA of around $10 million. Valens currently has a market cap of around $400 million which definitely makes it a mid-tier pot stock to watch. For this reason, investors should continue to keep a close eye on this cannabis stock moving forward.