The introduction of allowing pot stocks to list on large U.S. exchanges has been quite a game-changer. In addition to several other large shifts in the cannabis industry, this has helped to pave the way toward marijuana stocks and the market being taken seriously by a broad spectrum of investors. Additionally, this has also helped to bring a large amount of capital into the market to help build out the cannabis industry to a level that no one thought was possible.
Despite this, currently, we have seen a high amount of volatility amongst these large marijuana stocks. Much of this is due to how new the industry is as a whole, but we can no longer just blame this on the infancy of pot stocks. Rather, it seems as though many investors are still investing off of speculation rather than the intrinsic value that a company can offer. In this way, some have only served to undermine the growth of the industry which is paramount to its success. But, as we move into the future it seems as though we are seeing hints of stability begin to creep into these market fluctuations.
This stability is characterized by slower price movements and smaller short term gains and losses. Of course, we are in no way out of the water, but it is a solid start to what could be the future of pot stocks. For this reason, these leading companies are illustrating what the next year or so could look like for the industry. As we move toward that time, it is important to pay attention to what is occurring at both ends of the market cap spectrum amongst pot stocks.
A Relatively Unknown Pot Stock
AbbVie Inc. (ABBV Stock Report) is an interesting company despite not being a traditional pot stock by any means. The company has managed to stay out of the limelight for some time which is interesting considering the potential for investment. The company developed one of the first cannabis-infused pharmaceuticals to be approved by the FDA in the U.S.
The drug known as Marinol was created to be used with cancer patients dealing with the effects of chemotherapy on the body. With only a few key companies acting as competition, AbbVie has managed to continue its relatively high position in the industry. The company also has seen around 13% in gains in only the last week or so. With that in mind, AbbVie is a very interesting pot stock to watch.
Another Alternative Pot Stock to Watch
Innovative Industrial Properties (IIPR Stock Report) is a leading pot stock that is gaining much attention. The company operates as a REIT which means that it purchases facilities and then leases them out to those who wish to grow cannabis. Because of the predictability of its business model, the company has been deemed a more stable pot stock than some more volatile options.
Additionally, the company has contracts that last around 10-15 years which means that profits are usually within expectation. Of course, there are no truly safe options when it comes to investing, but IIPR continues to present an interesting opportunity for certain pot stock investors. The company also offers a dividend which is quite nice and not something we see every day in the cannabis industry. For these reasons, Innovative Industrial Properties remains a promising marijuana stock to watch.
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