As we know, 2019 was not the best year for marijuana stocks. A combination of high tax rates and a slow rollout of legislation meant that cannabis companies did not live up to investor expectations. But, 2020 is here and with that comes a new range of possibilities for pot stocks. Many companies are making headway this year despite last year’s setbacks. Although the market has been slow to recover. As February comes to an end, there are a few interesting cannabis companies that could show solid fourth-quarter gains. As investors may know, companies that manage over $100 million in assets, are required to file a form titled 13F. This form provides insights into where a given company has invested its money.
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With a large amount of big Wall Street firms investing in cannabis, Form 13F will help marijuana stock investors to see what the big-name investment firms are putting their money into. With the data that is coming out, we are seeing some Wall Street Firms increase their holdings in certain pot stocks. Although this data is rich in information, it is still worth doing one’s own research before investing in a given company. Looking at the data, these two pot stocks are garnering a lot of attention from the investor world. One thing to note is that these two pot stocks may not have had the best past six months. The investors cited are looking at these companies for their future prospects rather than short term gains. Short term investors should be aware that these two pot stocks are highly volatile and may not be the best choice for swing trading. So with that in mind,
A Pot Stock That Has Limited Future Potential
HEXO Corp. (HEXO Stock Report) had a 26% rise in the amount held by those who filed the 13F form. While this may be the case, HEXO has not shown a lot of reason for it to be a solid pot stock to watch. Shares of the company have dropped substantially in the past six months, so why is it being held more by these investors? Well, there are a few things that HEXO has been doing to try to get back on its feet. One of the big issues in the Canadian marijuana market is the rise of the black market. HEXO has been working to combat this by offering a new brand known as Original Stash.
This brand states that it is selling cannabis for around $4.50 per gram which is significantly less than most. By offering cannabis for such low prices, HEXO is working to try and beat out the rampant black market. This brand has not garnered much attention in the past few months, but the company is still heavily working to get its name out there. So is this enough to make HEXO look like a marijuana stock to buy?
A Big Name Pot Stock With a Volatile Past
Canopy Growth (CGC Stock Report) does not spark a lot of excitement when it is mentioned as a pot stock to watch. The company has had a rough past few months right alongside the other big-name pot stocks. But, the company just reported its third-quarter results, and investors are quite happy with them. This does not mean that Canopy is out of the water when it comes to future gains, but the company is making big strides in the right direction. CEO David Klein stated that “make no mistake— we have a lot of work to do.” 
The company is still working on seeing profitability in its pricing, but this is also shared amongst other large marijuana producers. In addition, it has a lot of work left to do in the U.S. cannabis market, which could prove profitable for the company in the near future. So with these factors on the table, Canopy’s future continues to look interesting to prospective investors.
These two big-name pot stocks may be getting a lot of attention, but investors should still be aware of their volatile nature. Moving forward, we could see momentum begin to push these companies back to the golden days of 2018, but everything remains up in the air at the current point in time. For now, research and a close eye on the market are an investor’s best friends.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
