Why Are Investors Focused On These Marijuana Stocks?
For those looking to invest in marijuana stocks, there are some things one should know beforehand. First, you should educate yourself about the stock market so you can understand the basics of how companies trade. Next, you should also understand that cannabis stocks trade in a volatile market. What this means is that the price of a particular marijuana stock may rise or drop in price without warning. Depending on the situation it may work in favor of the investors. As well you should also research the sectors so you can familiarise yourself with how cannabis stocks trade.
Another thing to point out is there are multiple niches in the cannabis sector to invest in. You have ancillary companies that help provide packaging solutions and other services without dealing with the plant directly. Then you have pure-play cannabis companies that manly deal with growing working with plants directly. The next 2 niches to mention are extraction service providers and multi-state operators. The ESP or extraction service providers deal mostly with cannabis extracts and concentrates. Last but not least you have MSO which are cannabis companies that have acquired the legal licensing to work in other cannabis markets. Each one of the niches offers a wide range of investment opportunities.
Now with pure plays marijuana stocks, tend to pose the most risk but can also yield solid returns. ESP’s or MSO’s oftentimes are more so in the middle of the risk factor as depending on the industry and market can swing either way. When it comes to least risk most would say ancillary cannabis stocks mainly because cannabis is not the only outlet for these companies. So with this info above is a good starting point for investing in marijuana stocks. Just make sure you do your research before investing.
Marijuana Stocks To Watch This Month
Charlotte’s Web Holdings, Inc.
Charlotte’s Web Holdings, Inc. is known as one of the top CBD cannabis companies in the cannabis industry. Back in April, the company had announced three of its proprietary hemp cultivars were approved for registration on Health Canada’s List of Approved Cultivars. This will be for outdoor cultivation in Canada.
“The majority of approved cultivars on the LOAC to date have been for industrial hemp grown to produce food, fiber, and animal feed. Now our approved cultivars are paving the way for full-spectrum hemp CBD demand in Canada and most importantly, will provide access to Charlotte’s Web products in Canada1,” explained Jared Stanley, co-founder and chief cultivation officer of Charlotte’s Web.
As well over the last month or so of trading CWBHF stock has been affected by the sector’s loss in momentum. Like most pot stocks right after the first week and half of February, the sector started to fall. Now in March CWBHF stock did see a small uptick in trading from the 8th to the 17th. This was a period where some investors who were concerned with more upward trading could sell off parts of their position before another drop in trading. Which eventually did occur the rest of March. For most of April, the same downward pattern of trading took place. However currently in May CWBHF stock has once again started to slowly push back up in the market.
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Sundial Growers Inc.
Sundial Growers Inc. is one of the many marijuana stocks investors are watching for better trading. For many marijuana stocks, the first 10 days of February have been the high point in 2021. Since then SNDL stock has not been able to trade back at those levels. But even while trading down investors have been buying SNDL stock off the dip and remaining patient for a strong upward push to take place. Yet over the last 8 weeks, many pot stocks including Sundial have had trouble seeing consistent price movement. Yet up until recently, the company has not seen an uptick in trading. Right now SNDL stock has started to rise back up in the market.
However, investors and shareholders will have to wait and see if the company can sustain this upward climb to reach a better market position in May. In the company’s most recent news Sundial has announced it will acquire Inner Spirit Holdings and Spiritleaf Retail Cannabis Network. The combined company will continue to focus on providing quality cannabis to consumers through a responsible and disciplined approach while creating enduring value for shareholders.
“Sundial becomes a stronger and more diverse cannabis company by acquiring Inner Spirit and the Spiritleaf retail store network,” said Zach George, Chief Executive Officer of Sundial. “Inner Spirit has successfully created a franchise-based retail network that has grown from coast to coast and offers a differentiated and premium in-store experience to consumers. Our shared Albertan roots and commitment to data-driven consumer insights make for an ideal partnership. Sundial’s capital base will enable us to support continued expansion and deepen the capabilities of the Spiritleaf retail brand.”