In the past week or so, we have seen some bullish momentum begin to creep its way back into marijuana stocks. With this information, we would usually be talking about small and mid-cap marijuana stocks. This usually makes sense as the trickle-down effects of growth are often felt in the smaller market cap sections. But, it seems as though a lot of the focus right now is on the big names marijuana stocks. This is not to deny the progress of that smaller sector, but the weight of the bulls being most heavily felt at the top right now.
But, heed this warning that pot stocks are known to be very volatile. This means that these large gains don’t usually last very long. It is fair to assume, however, that a new leaf is being turned over in the industry. This could be the beginning of the market’s return to success, but only time will tell. For now, investors should still be aware that these large pot stocks cannot climb at this high rate forever. Right now though things do continue to look good for the industry.
Marijuana Stock To Watch: A Key Retailer
MedMen Enterprises (MMNFF Stock Report) (MMEN) is one of the leading retailers of cannabis currently working amongst marijuana stocks. The company owns several retail locations in the California market. With this large exposure to the largest cannabis market in the world, the company looks like it should be a solid choice to watch moving forward right? Well, the company has seen some issues with growth as a large portion of independent areas in California have chosen not to allow the sales of recreational marijuana.
Additionally, the company reported losses totaling around $230 million in 2019. With this information, the company has been able to cut a large number of its expenses, but it does not seem like it has been enough at this point. As one of the largest cannabis retailers in the world, the company does remain an interesting pot stock to watch. But, its success remains to be seen.
Marijuana Stock To Watch #2 A Top Cannabis Grower
HEXO Corp. (HEXO Stock Report) is one of only a handful of marijuana stocks to be listed on a large U.S. exchange. The company is a Canadian grower of cannabis and has been able to produce quite a bit of the substance in the past year or so. This is characterized by a large number of grow operations being conducted around the nation. Additionally, the company recently purchased Newstrike Brands, which has also been an operation in itself.
There are some bad sings coming from HEXO recently which makes it a dicey choice for some. For starters, the company did recently complete a layoff which is never a good sign. If that wasn’t enough, the company also reported that it will not see profitability until it is able to capture at least 20% of the Canadian market share. Interestingly enough though, the company saw around 40% of growth in its stock price in only the past few days. So, volatility or faith in the company? We’ll leave that one up to you.