Profits Remain an Important Factor For Success Amongst Pot Stocks
While profitability is not the only thing to look for in a marijuana stock to watch, it is definitely important. After last year, things were looking good for the leading cannabis stocks in the industry. But when COVID came along, we saw a massive downtrend throughout the whole cannabis industry. After a few months, prices for major pot stocks began to stabilize. Then as March came along, we began to see prices shoot up like crazy. Here we are now, a few months later and not much has changed. Yes, COVID is still very much an issue throughout the world, but it does seem like investors are more comfortable investing in a coronavirus-ridden market.
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Since March, many leading cannabis stocks have shot up and even doubled in value in some cases. This is not to say that we are out of the woods yet as things are still very volatile. But, the future of the cannabis industry looks extremely bright which means that we could continue two see growth in the near and distant future. For now, profitability may be a great thing to look for in a potential pot stock to buy. With that, these two cannabis stocks have a solid chance at seeing profits this year.
A Marijuana Stock With Solid Potential
Valens Corp. (VLNCF Stock Report) is an extraction services provider based out of the Canadian cannabis industry. The company has stated that it expects VLNCF stock to post as much as $0.23 cents in gains per share this year. The company has several key things going for it that could help to make those profits a reality. For one, extraction based cannabis stocks tend to have much higher margins than most other marijuana stocks. This is simply because derivative products have larger margins than traditional raw cannabis.
In addition, VLNCF stock tends to be less volatile than other pot stocks due to the fact that it is ancillary company and not a pure play one. In addition to this, Valens has been able to secure large contracts for the future. This should help with any worries surrounding short and long term stability in the company. For this reason, the hopes are that VLNCF stock can post some solid gains in the next few months. And with demand for extraction up more than ever, it seems as though this is becoming increasingly likely.
An ETF Based Pot Stock to Watch
ETFMG Alternative Harvest (MJ Stock Report) is one of the most popular cannabis ETFs in the industry. The stock is not so much a marijuana stock but it is an exchange-traded fund that is based in the cannabis industry. MJ stock has followed the gains and losses of the cannabis industry in since its inception as that is what it is for. The ETF also allows investors to buy puts and calls which gives a lot of potential to MJ stock.
The ETF has as much as $600 million in assets with a dividend being paid out at around 7.25%. This is quite a solid number and should help to make a decision when searching for a marijuana stock to buy. Of course, ETFs can be less risky than individual pot stocks given the broad scope that they work in. But, because risk can be so high with the former, ETFs present a very good opportunity for more risk-averse investors. Because of this, MJ stock continues to be watched by a myriad of investors.
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