Within the past month, we have witnessed some drastic shifts completely change the way marijuana stocks operate in the market. Within this is new legislation in combination with the shifting public opinion of cannabis. The two distinct North American cannabis markets of Canada and the U.S., both present different and changing opportunities for those looking for marijuana stocks to buy. This means that profitability, as well as the volatility of these two markets, are subject to shift based on location and a variety of different factors.
Right now, we are seeing an uptick in the number of investors coming into the pot stock market. These investors are searching for value wherever it can be found and for good reason. One of the most prominent pot stock investments comes in the form of pure-play companies.
These businesses operate by producing or handling the raw cannabis substance. These businesses also tend to have the highest rates of volatility due to a correlation between size and the volatility that lies at the top of the pot stock market. With these in mind, two key pot stocks are continuing to dominate the space.
A Marijuana Stock To Watch: A Vertically Integrated Marijuana Stock
1933 Industries Inc. (TGIFF Stock Report) (TGIF) is one of the leading vertically integrated pot stocks currently operating in the industry. The company works through two wholly-owned subsidiaries which together, have operations in both the U.S. and Canada. Because of its broad scope, the company has a greater amount of exposure to the wider cannabis market than most other pot stocks. With its subsidiaries, the company is able to participate in many different aspects of the cannabis market. This includes cultivation, extraction, processing and the manufacturing of assets.
Recently, the company announced that it has introduced its newest product known as Birdhouse CBD Balm by Canna Hemp X. With a name like that, it has to be good right? The collaboration between Canna Hemp X and Birdhouse Skateboards is one that could see some heavily fruitful returns. By targeting the action sports market, the company has been able to maximize its grasp on such a niche market. Moving forward, the company remains a key pot stock to watch.
A Marijuana Stock To Watch: With a Cheap P/E Ratio
Supreme Cannabis (SPRWF Stock Report) (FIRE) is considered to be one of the cheaper pot stocks on the market when considering its forward P/E ratio of 16.5. The company has been working to overcome the issues with supply in the Canadian cannabis market. This way, it has been able to succeed somewhat with some big supply deals for Quebec and Newfoundland and Labrador.
These distribution agreements should prove to be quite important for the shifting market, as they help to illustrate which companies could remain key producers. Although the company has more deals in the works, right now it proves itself to be an interesting pot stock to watch. Moving into the future, it fully depends on how well the company can function amidst fervent competition and the shifting overall pot stock market.
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