What Will These Pot Stocks to Watch Look Like in the Long Term?
ESPs or extraction service providers have shown consistent profitability in an industry where consistency is not always a reality. And, with only a few to choose from, competition amongst these marijuana stocks remains low. While these pot stocks may not be the largest like Canopy Growth Corp. (NYSE:CGC) or Aphria Inc. (NYSE:APHA), they do have a lot to offer investors. Of course, we can’t simply make the decision of whether or not a company is a marijuana stock to buy without first looking at the financials.
This should be the backbone of any investors’ strategy in the cannabis industry. While some pot stocks have shown solid future plans, they may not have the best financials in the present day. But, with a little bit of research, we can begin to find value where others may not have been able to. We also have to note that ESP pot stocks can be quite volatile since they do have a large correlation to the greater cannabis industry. But, with that in mind, here are two ESP pot stocks to watch moving forward.
A Leading ESP Pot Stock to Watch
Valens Company Inc. (OTC:VLNCF) is considered to be one of the leaders when it comes to the ESP industry. As a Canadian marijuana stock, VLNCF stock has had to contend with several issues that are facing the Canadian cannabis industry. This includes everything from confusion surrounding market demand to the recent legislation that allowed extraction products to be sold. With that, VLNCF stock also has a very advantageous position in the Canadian cannabis industry to be one of the leading pot stocks to watch. As stated before, Canada only legalized derivative products at the beginning of this year.
That means that there is a great deal of untapped potential just waiting to be capitalized upon. And, as far as investors are concerned, VLNCF stock is still down by around 50% since the beginning of this year. With so much potential for the near future, many believe that VLNCF stock could be considered a value pot stock to watch. Of course, there are competitors in the value part of the industry like KushCo Holdings Inc. (OTC:KSHB), but VLNCF stock is in a league of its own. For this reason, it remains a leading pot stock to watch moving forward.
Another Canadian ESP to Watch
MediPharm Labs Inc. (OTC:MEDIF) is a similar company to Valens, but it does differ in some ways. After being founded in 2015, MEDIF stock quickly received a great deal of investor optimism. The company states that it is in the production of several pharmaceutical-grade cannabis oils as well as concentrate products. Currently, MEDIF stock has received a great deal of attention for its 70,000 square foot facility in the heart of Ontario. The company also states that it uses only the best equipment possible such as extraction machinery made by the company Vitalis
In its 2019 third and fourth quarter, MEDIF stock posted positive EBITDA growth as well as growth in its revenue. Again, we have to remember that this was prior to Canada even legalizing distillate products. Because of this new legislation, there seems to be a long road of potential ahead of MEDIF stock. Its success will greatly depend on how much business it can continue to drum up as well as its profitability. With this in mind, MEDIF stock continues to attract new investors from all around the cannabis industry.