The past six months for marijuana stocks have been less than stellar for most companies. Many have stated that the recession amongst cannabis companies, maybe over at this point in time. This means that some companies could be picked up for bare-bottom prices. One of the things to note about looking for marijuana stocks to buy is that the market is still very young. This shows that despite some companies having a large amount of intrinsic value, trading is still done off of speculation.
As far as the every-day trader goes, speculation is a great way to potentially bring in short term gains. It does, however, undermine the potential for different marijuana stocks in the long term. Many pot stocks have been waiting on a real operating profit which has resulted in many investors taking the market day by day. While this works for now, as the industry matures into the next few years, the hopes are that trading can be done more off of value and less off of news hitting the industry. As we sit back and watch some companies make big strides, these two Canadian pot stocks are working to make a name in the industry.
Canadian Marijuana Stocks To Watch #1: Village Farms International (NASDAQ:VFF) (TSX:VFF)
Village Farms International (VFF Stock Report) (VFF) is a pot stock that has consistently garnered investor interest. The company began as a grower of high-quality vegetables in indoor facilities several years ago. Recently, the company transitioned to producing high quantities of top tier cannabis for sale in the open market. With six greenhouses that Toal around 9.2 million square feet in growth space, the company may have a high amount of potential for the quantity of cannabis that it can grow.
The most recent report on revenue shows that the company pulled in around $59 million during the last quarter. Additionally, Village Farms International looks to set up its 2020 with a comeback in the market. With so many pot stocks posting large losses in the past few months, Village Farms looks like it is the outlier in that regard. Of course, the company is not immune to volatility, but it does look like it has shown some stability in regard to pricing.
Canadian Marijuana Stocks To Watch #2: Charlotte’s Web Holdings (OTC:CWBHF) (TSX:CWEB)
Charlotte’s Web Holdings (CWBHF Stock Report) (CWEB) is a highly notable player in the CBD area of the cannabis industry. The company has worked heavily to produce high-grade CBD-infused products. Recently, Charlotte’s Web stated that it has its products in as many as 4,000 locations around the U.S. and Canada and was able to produce around 700,000 pounds of hemp mass last year. Additionally, Charlotte’s Web has a large, 40,000 square foot research and development facility which it also uses to produce more hemp.
The company has a near $1 billion market cap which makes it one of the larger players amongst other pot stocks. Investors should be aware that the company does remain quite volatile when compared to other major marijuana stocks. With this in mind, Charlotte’s Web Holdings seems to be pot stock to watch going into the new year. In the beginning month, they announced that it has closed its previously announced underwritten public offering for aggregate gross proceeds to the Company of C$66,250,000. A total of 5,000,000 units of the Company, at a price of C$13.25 per Unit were sold pursuant to the Offering.
The Offering was led by Canaccord Genuity Corp., together with a syndicate of underwriters including Cormark Securities Inc., Eight Capital, and PI Financial Corp.
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