How Will These Small and Mid-Sized Pot Stocks Continue to Perform in September?
Volatility is rampant in the cannabis industry. This is something that we have seen for quite some time now. But, as the industry continues to mature, marijuana stocks are beginning to find greater stability. And although we can’t always count on this stability to be in place, some pot stocks are showing greater amounts of it than others. While institutional investors tend to focus on the big pot stocks like Tilray Inc. (NASDAQ:TLRY) and Green Thumb Industries Inc. (OTC:GTBIF), there are plenty of small and mid-cap pot stocks to watch that are worth giving your attention to.
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Because they are smaller, these companies tend to have a greater amount of growth potential. This of course depends on the individual business models of a given pot stock, but the sentiment remains. One thing to keep in mind is that smaller pot stocks tend to have less volume. This can mean that their liquidity is less than many of the larger cannabis stocks in the industry. While this is not a huge issue, it does present a challenge for some investors looking for greater amounts of stability. With that in mind, here are two leading mid and small cap pot stocks to watch.
A CBD Cannabis Stock Play
Charlotte’s Web Holdings Inc. (OTC:CWBHF) is arguably the largest CBD based pot stock in the industry. Currently, CWBHF stock has a market cap of around $1.6 billion which is quite a lot. Although it is not a small-cap pot stock to watch, CWBHF is not a well-known marijuana stock as far as pure-play pot stocks go. The company is in the production of various CBD based products such as creams, ointments, oils, and more. With this, CWBHF stock has received a very solid amount of attention in the cannabis industry.
As of 2018, CWBHF stock saw success from the company having its products in more than 3,700 stores. In 2020 however, that number has more than doubled to over 8,000 stores. This includes having its products in many Kroger Co. (NYSE:KO) locations around the nation. The partnership with Kroger is relatively new, but it has already proven itself to be quite profitable for Charlotte’s Web. Because of this, it remains one of the most prominent non-pot mid-cap marijuana stocks to watch.
A Marijuana Stock To Watch A Cannabis Grower
Harvest Health & Recreation Inc. (OTC:HRVSF) may not be the most popular pot stock, but it does have a lot to offer investors. Based out of Arizona, the company has been able to become one of the largest producers of cannabis in the U.S. as of its most recent quarter, HRVSF stock posted around $20 million in revenue. This is very substantial and shows just how fast the company is growing. While most pure play pot stocks are based out of Canada, HRVSF stock has an incredible grasp on the U.S. cannabis industry. 
With as many as 210 facilities across 17 states, the company has one of the largest footprints in the U.S. market. In addition, 140 of those locations offer retail sales as well. This means that Harvest Health is a vertically integrated cannabis stock. And we all know that vertical integration can equal much higher rates of profitability. For this reason, HRVSF stock continues to be a leading pot stock to watch.