After a great start to 2019, many pot stocks fell short of expectation during the latter half of the year. After supply issues and a highly segmented market, many marijuana stocks ended last year with some significant losses. This year has unfortunately not yet seen cannabis companies make a huge comeback. But, the future still shows that there is a lot of growth left to be seen in the industry. Of course, we have to consider the issues that reside in the industry, but regardless, some marijuana stocks have managed to turn a profit in the past thirty days.
These companies happen to be small and mid-cap pot stocks that often are not pure-play cannabis businesses. Because of this, it is worth researching all of the alternative pot stocks to find which ones may see profitability sooner than others. During February, of this year, most pot stocks posted significant losses all totaling around 10%. With this in mind, these two cannabis stocks were actually posting gains during the month of February. So, can they continue on their rise to the top?
How Will This Pot Stock Make A Profit?
Sundial Growers (SNDL Stock Report) was one of the best performers in the industry during the month of February. The company saw almost 20% in gains this past month. As a cannabis culitvator, the company has been able to avoid a lot of the volatility that the leading producers have encountered. The recent gains can be greatly attributed to investors feeling more confident in the company’s leadership. After the CEO of the company announced his resignation, the company saw its shares drop by more than 50%. So, we could potentially attribute these gains to a resurgence of bulls looking for value where it can be found.
Although the company did post these gains, it does look like it could be headed for some more volatility in the short and long term. Sundial Growers continues to face the issues of the Canadian cannabis market head on which means that the future remains quite uncertain. With low margins for its wholesale cannabis and issues with supply in Canada, the company could be considered a pot stock to watch, but investors should make sure to keep a close eye on it.
The Popular REIT Pot Stock
Innovative Industrial Properties (IIPR Stock Report) is one of the most popular ancillary pot stocks in the industry. The company has consistently managed to make gains when others are struggling to do so. It may seem small, but the company was able to shoot up by around 3% during February. One of the main reasons that it has been able to succeed is the fact that investors feel quite stable about the company’s future. As a REIT, IIPR offers leasing solutions to those wishing to participate in the cannabis industry.
The majority of its contracts are in the 10-year range which means that profitability could remain quite stable. The company also recently released its fourth-quarter results which showed that it has instead over half of a billion in its 51 properties. These properties span across 15 states in the U.S. which means that IIPR has a broad and diverse portfolio at hand. Because of this, investors have shown that they feel quite bullish about IIPRs future. For these reasons, it remains a key pot stock to watch moving forward.
These two pot stocks were not the only ones to show gains in February, but they are a great example of where investors can look when other companies are posting big losses. Moving forward, it seems as though the future of the cannabis market may remain quite unpredictable for some time. But, with a solid amount of research, finding the right pot stocks to watch can be easier than expected.
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