Top Pot Stocks In The US And Long Term Investing
Are you looking for top marijuana stocks to buy in September? One area that has held its value better than the rest of the cannabis sector is ancillary cannabis stocks. Ancillary cannabis companies are those companies that support the cannabis industry without touching the actual plant. Since the beginning of the pandemic, many companies in this area have seen substantial growth in the cannabis market. For the most part institutional investors and retail investors have begun to look at ancillary cannabis stocks as better for long-term investing.
In some cases, these marijuana stocks even provide a dividend to shareholders. One example that has been delivering for investors is Innovative Industrial Properties, Inc. (NYSE: IIPR). For a long time, IIP has been one of the only cannabis REITs providing US cannabis companies with triple net leases and capital for processing facilities. In August IIPR stock continued to see upward momentum as the rest of the cannabis sector trended downward.
Now as more Cannabis REITs begin to enter the game if they trade anything like IIPR stock it could be good for your long-term portfolio. With limited options for funding, cannabis companies have depended on companies like IIP to fund cultivation facilities and processing centers across the US. At the present time, the cannabis industry is growing rapidly in the US and markets around the world.
Investing In The Cannabis Industry In 2021
On that note, at its current growth rate, US cannabis sales are expected to more than double during the next five years. This is partly due to an increase in demand and new states establishing legal cannabis. At the present time, as the cannabis sector waits for the US federal government to end prohibition many cannabis companies continue to show significant revenue growth and continue expanding into new markets. For investors finding the best marijuana stocks to invest in could produce returns for the future. As these new REITs continue to establish themselves in the industry, they could deliver gains for investors.
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Before investing in top cannabis stocks there are important factors to consider. For one the cannabis sector is known for having significant market volatility. This is something long-term investors need to consider before investing. In addition, researching a company’s earnings and studying how the stock performs in the market can help you establish the most gains for your investments. In the first week of September let’s look at 2 top marijuana stocks for your list this month.
Top Marijuana Stocks To Watch In September
- NewLake Capital Partners, Inc. (OTC: NLCP)
- AFC Gamma, Inc. (NASDAQ: AFCG)
NewLake Capital Partners, Inc.
Making its debut in the market in August NewLake Capital Partners is a leading provider of real estate capital to state-licensed cannabis operators. Founded in 2019, it is a triple-net lease REIT that acquires industrial and retail properties through sale-leaseback transactions, third-party purchases, and build-to-suit projects. At the present time, its tenants are some of the leading operators in the U.S. state-licensed cannabis industry and it is a trusted partner for their real estate needs. In August the company closed its IPO offering of 3.91 million shares of common stock at a price of $26.00 per share.
Initially, the company will use the net proceeds to acquire the company’s target assets. At the present time, NewLake Capital has more than $325 million in assets, more than $110 million in cash, and a portfolio of 27 properties in 10 states. Specifically, the company is comprised of 17 dispensaries and 10 cultivation facilities. Currently NewLake Capital has tenants that include Curaleaf Holdings, Inc. (CURLF), Cresco Labs Inc. (OTC: CRLBF), Trulieve Cannabis Corp. (OTC: TCNNF), and Columbia Care Inc. (CCHWF).
NLCP Stock Performance
NLCP stock closed on September 3rd at $30.00 with very low volume. The stock has a price range of $27.50-$32.00 in its first few weeks of trading. At the present time, NewLake Capital does not pay a dividend. With low volume action, NLCP stock could be a new cannabis stock to add to your list in September.
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AFC Gamma, Inc.
Next on the list, is AFC Gamma, Inc. an institutional lender to leading cannabis companies with strong operations. Primarily, the company specializes in real estate security and other collateral. For properties and locations in states with favorable supply/demand fundamentals and legislative environments. At the present time, AFCG provides financing solutions through first-lien loans, mortgage loans, construction loans, and bridge financings. Accordingly, AFC Gamma’s principles are now focused on the exponential growth of the cannabis industry. On August 31st AFC Gamma announced it provided Beleaf Medical, LLC a secured credit facility of $23 million to fund its Missouri expansion.
On August 5th the company reported its Q2 2021 financials showing net income of $4.6 million or earnings of $0.34 per basic weighted average share of common stock. In addition, the company saw distributable earnings of $5.8 million or $0.43 per basic average share of common stock. Specifically, in Q2 the company closed $71.3 million of new commitments and funded $77.8 million of new and existing commitments. One prospect that AFC has for shareholders is its dividend. For Q2 2021 the company paid a dividend of $0.38 per common share. As of August 1st, the company has a portfolio consisting of loan commitments worth $195.3 with $175.3 million of outstanding principal across 14 portfolio companies.
AFCG Stock Performance
AFCG stock closed on September 2nd at $21.64 up 3.64% in the past five days. The stock has a 52-week price range of $19.75-$25.05 and is up 2.32% in the last month. According to analysts at CNN Business AFCG stock has a 12-month median price forecast of $26.75 per share. In this case, this would represent an increase of 24.13% from its last trading price of $21.64. For September AFCG stock could be a top pot stock for your watchlist right now.
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