2 Pot Stocks to Watch For The End of The Year
MSO marijuana stocks are some of the most popular choices in the cannabis industry. While this hasn’t always been the case, the focus has turned on MSOs in the past year. There are several reasons why MSO pot stocks have seen so much popularity in 2020. For one Covid-19 has led to a great increase in demand for cannabis. While this does affect marijuana producers, the retailers of marijuana seem to see the biggest benefit. These companies are the most forward facing aspects of the cannabis industry. The second reason is that MSO pot stocks tend to have much greater profitability and earnings than pure play marijuana stocks.
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Yes, companies like Aurora Cannabis Inc. (ACB Stock Report), OrganiGram Holdings Inc. (OGI Stock Report) and Cronos Group Inc. (CRON Stock Report) are interesting, but profitability has been tough. With MSOs, the opportunities to see larger gains due to volatility is much greater. Because of Covid, many investors believe that the increase in cannabis demand will continue into the future. Whether or not this stands to be true remains unknown. But, what we do know is that in the long term, marijuana stocks are supposed to see a great deal of growth. With that in mind, here are two MSO marijuana stocks that should make it through 2020 better than they came in.
An MSO Pot Stock To Watch: Curaleaf Holdings Inc.
Curaleaf Holdings Inc. (CURLF Stock Report) is one of the largest MSOs in the U.S. In addition, the company has one of the largest presences in the U.S. cannabis industry. While many MSOs focus on one or two states, CURLF stock has benefitted from the company’s focus on several areas. This includes New York and New Jersey. In New York, Curaleaf has almost 25% of the market share with 35% in New Jersey. This is quite a lot, but it means little at this time given that both states have small cannabis industries comparatively. The real potential here is in the long term. Both New York and New Jersey have incredible growth potential if new legislation goes into place. If new laws were to be approved, these two states could have some of the largest cannabis industries in the country.
In the present, Curaleaf has been able to secure quite a solid business model for itself. The company has a very small amount of debt relative to its massive market cap of nearly $4 billion. In addition, CURLF stock is not nearly as volatile as some of the larger cannabis stocks in the industry. In addition, CURLF stock has been able to recover greatly from its early 2020 Covid losses. While the future of CURLF stock seems to be bright, investors believe that there could be some volatility for the company in the near future. But, if all things go according to plan with the upcoming election, Curaleaf could see its market grow much larger. For this reason, it remains a leading marijuana stock to watch.
An MSO Pot Stock To Watch Trulieve Cannabis Corp.
Trulieve Cannabis Corp. (TCNNF Stock Report) is another one of the very large MSOs in the U.S. cannabis industry. Different from CURLF stock, TCNNF stock has managed to grow from its presence in several specific markets. The most prominent of these is Florida. As of 2020, the company has stated that it holds around 50% of the medicinal marijuana market share in the Sunshine State. This is very substantial considering the size of the market there and the potential for its future.
While Trulieve does have dispensaries in California, Massachusetts and Connecticut, its primary focus continued to be Florida. Many believe that Florida could become one of the next states to legalize marijuana for recreational use. If this occurs, there’s no doubting that TCNNF stock could see some major bullish sentiment. While we can’t predict the future, the positivity surrounding cannabis in Florida shows that there is a great shot at growth for TCNNF stock in the long term. With this in mind, Trulieve Cannabis Corp. remains a leading pot stock to watch.
Are MSO Pot Stocks the Way to Go?
In the past six months, MSO pot stocks have shown a tremendous amount of growth potential. This is again due to effects of Covid-19 on consumer demand for cannabis. As stated before, no one can predict the future and we don’t know when Covid will come to an end. But, what we do know is that there continues to be a lot of positive sentiment surrounding MSOs. For this reason, investors should continue to keep a close eye on the two pot stocks mentioned above. As always, the hopes are that we can watch the cannabis industry continue to grow in the near future and beyond.
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