2 Pot Stocks to Watch in October 2020
2020 has been a wild year for marijuana stocks to say the least. What began as a normal trading year quickly developed into a great deal of volatility. This volatility is due mostly to the effects of Covid on the world economy. The pandemic has affected all areas of the stock market and not just marijuana stocks. But, companies like Canopy Growth Corp. (CGC Stock Report), Aurora Cannabis Inc. (ACB Stock Report) and Tilray Inc. (TLRY Stock Report), were some of the most affected pot stocks. Soon after the pandemic began, things started to shift for the better.
As March came and went, many leading pot stocks to watch quickly rebounded in value. Now, only six or so months later, we see that a large amount of marijuana stocks to watch, have climbed in the high double digits. So, what does this mean for cannabis stock investors? Well, in short, investors can take advantage of the current situation we are in. They can do this by searching for value where it can be found in the cannabis industry. This means researching, and discovering aspects of the cannabis industry that others may not have stumbled upon yet. With that in mind, let’s take a look at two marijuana stocks that are being watched by investors.
Marijuana Stock to Watch: Sundial Growers
Sundial Growers (SNDL Stock Report) is a Canadian based cannabis grower. The company states that it is in production of several specific cannabis strains that all serve distinct functions. While SNDL stock is a pure play pot stock, the company functions differently than most other marijuana stocks. Sundial Growers has stated that it is working in the health and wellness side of the cannabis industry. This means that it is not solely producing cannabis for the recreational market. Rather, the company has made products that can be used as therapeutics by those who need it. This includes CBD infused products as well as other medical therapy consumables.
In Alberta where it is headquartered, SNDL stock has grown substantially. The company currently has two locations in its home province, with a new cannabis grow facility on the way. If we look at the chart for SNDL stock, it does leave a lot to be desired. But, it seems as though the company still has a lot of future growth plans that have yet to take shape. Because of this, many believe that SNDL stock is more suited for long term investors. With that in mind, it remains a leading marijuana stock to watch.
Marijuana Stock to Watch:22nd Century Group Inc.
22nd Century Group Inc. (XXII Stock Report) is one of the major gainers in October. If we go even further back, we see that from early September until October 15th, XXII stock has shot up by over 50%. This is an extremely substantial gain, and something that should not go under the radar for investors. One of the main reasons behind this gain is the company receiving FDA approval for its modified risk tobacco product. Now, the approval is not the standard FDA path, rather it was a marketing authorization that the company received. After this occurred, the company also announced that it was granted a new U.S. patent for its ability to reduce nicotine in tobacco.
CEO of 22nd Century, James Mish, stated that “this breakthrough further demonstrates that the FDA’s Comprehensive Plan for Tobacco and Nicotine Regulation to limit the nicotine content of all cigarettes sold in the United States is technically feasible and at the same time refutes the claim from Big Tobacco that such low nicotine levels cannot be achieved in multiple tobacco varieties.” While this may not seem like news for the cannabis industry, the company is considered to be a marijuana stock. Through a research collaboration with Anandia Labs, the company was able to build out a platform for researching cannabis in a high degree. With this, the company could build out some of the newest and most groundbreaking cannabis developments in the past few decades. Because of its future potential, XXII stock remains a leading marijuana stock to watch.
Do These Pot Stocks Have Potential?
The short answer is yes. The entirety of the cannabis industry is subject to long term growth. Analysts have stated that the cannabis industry is growing at an extremely fast rate. While the time frame that it may take for these pot stocks to see growth may be long, they both are showing solid value. In addition, the upcoming election in the U.S. and several other geopolitical factors, means that these companies could get a big boost in the future. While the majority of this remains as speculation, these two marijuana stocks continue to represent the future of the cannabis industry.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | firstname.lastname@example.org