There is no doubt that it is a difficult time to be a marijuana stock investor. But, with good times, there will always be the inevitable downturns. After a few weeks of massive declines across the marijuana market, the last week of March proved to be quite positive for the cannabis industry. This is in no way an indication of what could occur in the next few months, but it definitely is a good sign for right now. For any experienced trader, they know that the past few weeks have been an anomaly for the greater stock market.
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Assets like the Dow Jones and the NASDAQ, never move more than a few percentage points during the trading day. But, what has happened recently is a clear indicator of fear and panic. The rampant price action means that investors are truly unsure of what to do in the current moment. Although it is difficult to classify this as a bear market, the extreme volatility has made it hard for investors to identify a market trend.
But, marijuana stocks are used to these fluctuations. This means that cannabis investors are equally used to high ups and downs. So, if we use our skills in deducing value during times of big unknowns, there could be a chance to find some pot stocks to watch with real value. Again, it is anyones guess what will happen in the next few weeks. But for now, volatility may just be our friend.
An Alternative Pot Stock Play
Charlotte’s Web Holdings (CWBHF Stock Report) is considered to be the number one U.S. company when it comes to all things CBD. The company has been working off of its CBD opportunities and has produced a number of new and groundbreaking products using the substance. Currently, the FDA is working on releasing guidelines on CBD and how it can be used to treat different ailments. Although Charlotte’s Web’s products are for the health and wellness market, its consumers should still research CBD to make sure it’s right for them.
One of the things that makes this pot stock so intriguing is its capitalization of the U.S. market. The company has continuously worked to expand in the country, through the growth of its own business as well as through acquisitions. In addition to this, Charlotte’s Web has been working to increase the amount of production it has with a new almost 140,000 square foot production space. Because of this, it could remain a leader in the CBD market moving forward.
Another Pot Stock Working in the Alternative Market
MediPharm Labs (MEDIF Stock Report) works as an extraction service provider. With most ESP working out of the U.S., the company has a great hold on the Canadian cannabis market. One of the things that makes this cannabis stock so interesting is its business model. As opposed to sitting on a product to then either sell of retail it, the company works off of large production contracts. This ensures that it is always producing in line with its demand.
The company works with a large range of cannabis retailers in Canada, and has made its way to the top of the extraction service provider market because of this. With Canada only legalizing derivative products a few months ago, there’s still plenty of untapped opportunity in this side of the industry. With its contracts lasting anywhere from 12-18 months, the company has managed to keep consistency as one of its key principles. Moving forward, MediPharm Labs continues to be an interesting pot stock to watch.
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