Will Market Volatility Continue in October?
September has shown us that marijuana stocks are still prone to market volatility. With that in mind investors normally look at top marijuana stocks like Canopy Growth Corporation (CGC Stock Report) to judge how the cannabis industry is performing. Recently Canadian pot stocks have taken a hit from the announcement by Aurora Cannabis Inc. (ACB Stock Report) of massive write-offs to their balance sheet in September. Nevertheless, when investors buy stocks, they are betting on the future of the stock and not the past.
Many of the best pot stocks to buy are trading much lower than the highs seen in August. In contrast, this pullback can be seen as a good opportunity to begin an investment position. Doing your own research into a company’s financials and current business structure can help you as an investor make the best decisions for your portfolio. Furthermore, shareholders can determine good entry points with the more they know about a given company and the actual stock history.
Which Marijuana Stocks Are Less Volatile?
Consequently, most of the market volatility is predominantly dealt to the larger marijuana stock companies and pure play pot stocks. Given this volatility, many long-term investors steer clear of the industry as a whole. But if you invested in a company like Innovative Industrial Properties, Inc. (IIPR) back during its April and May lows. Currently, you would be well positioned to earn its 3.36% dividend yield for 2020.
Why should I invest in marijuana stocks? Needless to say, you may ask yourself this question. But many analysts believe the future of the cannabis industry could grow tremendously in the next decade. As a result, well positioned investors can see long term growth. As well as also play the swings in stock price for making short term gains. With that in mind here are two marijuana stocks catching investor interest.
This Marijuana Stock Is The Veteran Farmer In The Cannabis Industry
Village Farms International, Inc. (VFF Stock Report) is traditionally known for owning and operating agricultural greenhouse facilities and growing tomatoes, bell peppers, and cucumbers. With its experience in growing produce applied to marijuana cultivation Village Farm has become an interesting pot stock to watch. Now equally important to its business model, subsidiary Pure Sun Farms is the name of one of Canada’s most competitive large-scale cannabis producers. Equally important to the company’s large-scale marijuana production is its hand in the derivatives market.
Back in August, Village Farms stock shot up 15%. This was due to news about Pure Sun Farms beginning shipments of derivatives to select markets in Canada. Since derivatives just recently received legal status in Canada 2.0 the ability to quickly produce a consumer product and bring it market has sparked interest in Village Farms. In Addition, Health Canada has given Pure Sun Farms permission to commence sales of all edible, vape and bottled oil products. Currently the stock trades around $4.50 with a high back in August of $6.40. Recent price action makes Village Farms a candidate for some good research and investor analysis.
The MSO Marijuana Stock With Cannabis-Infused Beverages
Acreage Holdings, Inc. (ACRGF Stock Report) operates as a vertically integrated multi-state cannabis operator. In addition to having a large dispensary presence in California and Illinois. A recent partnership with the Canadian Cannabis Giant Canopy Growth Corp. (CGC Stock Report) has made Acreage a focus of investor interest. In fact, just yesterday Canopy Growth and Acreage announced initial plans to launch cannabis-infused beverages across the United States for the summer of 2021.
Not only does Acreages relationship with the biggest pot stocks in the Canadian market draw investor interest. But long term potential in the possibility of these cannabis infused beverages becoming a staple for game day coolers across America has to be analyzed also. Acreage stock has seen pretty stable trading action in recent months with a 50-day high of $3.25 back in August. Recently the stock has pulled back down to the $2.75 range. In spite of this pull back investors are watching this pot stock closely and researching how consumers react to its new cannabis infused beverages.