Marijuana stocks continue to attract more investors and it doesn’t look like the green rush is going to end anytime soon. With 2018 approaching fast, there is a lot to look forward to in the marijuana industry in this upcoming year, such as Canada’s national recreational legalization. Here are two marijuana stocks that are predicted to grow like weeds in 2018.
First and foremost is Canopy Growth Inc. (TWMJF) the well-known leader of the Canadian marijuana industry. Currently, Canopy is the largest cultivator in terms of production capacity as well as sales. It has been predicted that the marijuana grower has a market share of about 20% of the medical marijuana market, now let’s factor in if they had a similar share of the recreational marijuana as well.
The recreational marijuana market has been forecast by the Canadian Parliamentary Budget Officer (PBO) to generate $4.2 billion and $6.2 billion annually versus a professional services firm’s estimate to generate between $4.9 billion and $8.7 billion. By using the average of the two ranges, the country would have a market size of around $6 billion and if Canopy secures a 20% market share it would generate an additional $1.2 billion annually.
Canopy Growth (TWMJF) has also done something that no other marijuana stock has done before. The company was endorsed by alcoholic-beverage maker Constellation Brands (STZ) and the collaboration is to develop and market a marijuana-infused beer. With the additional revenue and the anticipation of this product launch, this marijuana stock will be on fire.
MedReleaf (MEDFF) trails behind Canopy Growth in current sales. The company’s production capacity will dominate in the upcoming year. MedReleaf (MEDFF) has boosted its capacity by 80% in preparation for legalization and it’s surely ready to get high on profits. The company’s production costs are also low, which indicates a sizeable amount of increased revenue. The marijuana stock not long ago raised more capital through an IPO.
Acquisitions of smaller marijuana growers also seem likely with the growing market. MedReleaf (MEDFF) might also grab the attention an alcoholic beverage maker as the company has identified beer as well as other beverages as part of its business plans. With strategic business plans and the slightest possibility of an acquisition, this is one company to have on your watchlist.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
3 comments
I love the insite about the pot stoke I want to buy stock and it gives great info on it
How much is the stock
Great Write up. Thanks.
I get broad exposure to the whole industry by owning HMMJ ETF shares. HMMJ includes a whole lot of Canopy and Medreleaf.
I also have many shares of what I call “The Quiet Giant” – Village Farms – VFF based in Delta, BC. VFF already has many huge agtech greenhouses growing veggies for the North American market.
A giant 1.2 million square foot hothouse is currently being retrofitted for Legal Cannabis production. That’s a joint venture with Emerald Health. And that 1.2 million square feet is just Phase 1 of 4 for starters. There will be no “marijuana shortage” with VFF in the industry.