Would You Buy These 2 Marijuana Stocks Off The Dip?
On October 28th, we saw many leading marijuana stocks trend downward alongside the whole stock market. Major marijuana stocks like Cara Therapeutics Inc. (CARA Stock Report), Canopy Growth Corp. (CGC Stock Report), and Cronos Group Inc. (CRON Stock Report), bounced downward by 3.9%, 1.7%, and 2% respectively. On the other hand, Tilray Inc. (TLRY Stock Report) was one of the only gainers of the day, shooting up by around 2% by EOD. If we look at this broadly, we see that this is not an issue with pot stocks.
Rather, the entire stock market is trading based off of Covid related fears and the lack of a stimulus package. This means that volatility is something to be expected in the next few weeks and possibly beyond. But, in the meantime, as investors we can search for value where it can be found. Billionaire business magnate Warren Buffett, always stated to “be fearful when others are greedy, and greedy when others are fearful.” This means that we could find some marijuana stocks to watch that are trading well below their value points. As always, investing in the stock market is a tough thing to do right now without paying proper attention. For those who are in it for the long haul however, now may be the time to find marijuana stocks to watch.
A Leading MSO Marijuana Stock
Green Thumb Industries Inc. (GTBIF Stock Report) is one of the most popular MSO pot stocks in the industry. As a vertically integrated MSO, GTBIF stock has been able to push margins much higher than similar businesses. As of October 2020, GTBIF has stated that it has 49 dispensaries currently in operation. These dispensaries span 12 states around the U.S. One of the major benefits of GTBIF stock is its massive reach across the U.S. While some MSOs have focused on one or two distinct markets, GTBIF has worked to push its brand as far as it can go. After acquiring Integral Associates last year, GTBIF stock has since been able to grow in the Nevada cannabis industry. This is an extremely lucrative market that has yet to be fully capitalized upon.
In addition to this, Green Thumb Industries has been working on building its portfolio of derivative products. This includes tinctures, edibles, vaporizers and more. These products tend to have much higher margins than traditional cannabis flower which should help the company’s bottom line. Some investors have stated that GTBIF stock could begin showing consistent profitability by the end of this year or in 2021. With this in mind, GTBIF stock remains a leading pot stock to watch.
Another Marijuana Retailer Pot Stock to Watch
Planet 13 Holdings Inc. (PLNHF Stock Report) is another one of the leading retailers of marijuana in the U.S. The company has chosen Nevada and the West Coast as its main place of growth. In Nevada, PLNHF stock has benefitted from the company’s aptly named SuperStore. This dispensary spans more than 112,000 square feet and holds within it restaurants, cannabis testing facilities, and more. For some context, the average Walmart is only around 105,000 square feet.
This massive location has helped to offer a lot of profitability to Planet 13 Holdings, especially with Covid occurring in the past six months. In addition to this, the company is working on building a slightly smaller, 40,000 square foot location near Disneyland in California. This location will be similar in scope to the SuperStore. But, it will also have its own unique market given the vast tourism that occurs in the area. If this store is able to be as successful as the SuperStore, there’s no telling how far Planet 13 Holdings could go in the long term. But, the company will need to keep expanding in order to keep up with demand and the market at large. With this in mind, PLNHF stock continues to be a marijuana stock to watch moving forward.
Should Investors Watch These 2 Marijuana Stocks?
These two pot stocks are just a few of a much larger industry. With the market crashing like it did on October 28th, there is a lot of potential to be had for those who can find it. Investors should keep in mind that the cannabis industry and the stock market are both extremely volatile right now. This means that investors need to keep a close eye on their portfolios for the foreseeable future. But, with low prices comes a great deal of opportunity. And, with the right research at hand, investors can have an easier time figuring out where that opportunity is. with that in mind, the hopes are that we can continue to see a large amount of growth in the future of the cannabis industry.
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