[Editor’s note: This story was originally published May 2018. It has since been republished and updated to include the most relevant information available. At least one stock has been removed from this list.]
Last year witnessed several catalysts for the legal cannabis industry, most notably the legalization of recreational marijuana in Canada. As a result, several marijuana stocks jumped substantially in market value due to the open-ended potential. Essentially, we’re talking about an industry that practically didn’t exist before, at least from a government tax revenue perspective.
But once legalization became a reality for our northern neighbors, the mundane aspects of the cannabis business imposed themselves. With the honeymoon phase over, investors wanted to see hard numbers. After supply and distribution issues caused high prices and low inventory, financial backers were less than impressed. As a result, marijuana stocks suffered steep declines.
Unfortunately, the sector is still drowning in a sea of red ink. Throughout the summer, U.S. investors hoped that cannabis firms would work through their growing pains quickly. Unfortunately, that didn’t happen. Several top names produced poor earnings reports, leading to a continued erosion in marijuana stocks.
Recently, the vaping crisis has made matters worse for marijuana stocks, at least from an optics perspective. Why? Because most of the illnesses involve the illegal vaping of THC-based liquids. As such, vaporizer companies are seeking to direct the heat somewhere else besides their core industry.
Nevertheless, despite the myriad headwinds, I believe marijuana stocks offer a compelling opportunity. One of the biggest reasons is that we honestly don’t know where this sector can go: While it could fall flat on its face, it very well could spark a paradigm shift.
Plus, during an economically sensitive time, we need more business growth, not less. That plays favorably into the hands of these 30 marijuana stocks to buy.
Marijuana Stocks to Buy: Cronos Group (CRON)
With marijuana stocks still jostling for position in the early phase of the game, we’ve seen several shifts. In this open-ended arena, Cronos Group (NASDAQ:CRON) has emerged as the unofficial leader of the pack. Thanks to strong backing from tobacco giant Altria (NYSE:MO), CRON stock has benefited from key acquisitions.
That said, it’s been a rough ride for cannabis players. Dethroned from their status as stocks to buy, Cronos and its peers have wilted this year from higher expectations. For example, the company knocked out a revenue and earnings beat for its second-quarter earnings report. This also included 1,584 kilograms of cannabis sold, up 232% from the year-ago quarter. Yet CRON stock tumbled on the positive news.
I’m not trying to dismiss the challenges. But over the long run, CRON stock appears a solid buy. For example, the company’s Redwood Holding Group acquisition gives it exposure to the U.S. CBD market via Redwood’s Lord Jones brand. Thus, with shares down 52% since the end of February, speculators should consider adding some positions on the cheap.
Aurora Cannabis (ACB)
Roughly one year ago, Aurora Cannabis (NYSE:ACB) was streaking toward the heavens. At the time, enthusiasm among marijuana stocks to buy was strong due in part to the “newness” factor.
Quite simply, we’ve never witnessed an illegal market suddenly enter the mainstream with robust public support. Combined with Aurora’s focus on the far less controversial medical-cannabis business, ACB stock seemed like a lock.
Over the last several months, shares have briefly popped higher, demonstrating its true potential. At the same time, ACB stock has been vulnerable to severe drops. A significant catalyst for these declines is shifting expectations.
Especially in the second half of this year, Wall Street wanted hard numbers, not narratives. Unable to satisfactorily deliver the goods, Aurora shares have plummeted along with most other marijuana stocks.
Still, Aurora Cannabis has the largest international footprint among Canadian marijuana stocks to buy. If U.S. legalization doesn’t quite happen, management has a viable back up plan. That’s because global weed use has grown 60% over the past decade, putting ACB in prime position.
Canopy Growth (CGC)
Canopy Growth (NYSE:CGC) is a perfect example of the prior hype — and the present reality — of marijuana stocks to buy. Before the volatility hemorrhaged this sector, CGC stock was one of Wall Street’s darlings. With an aggressive expansionary strategy, Canopy appeared poised to go places.
It also didn’t hurt that alcoholic beverages giant Constellation Brands (NYSE:STZ) acquired nearly a 40% stake in CGC stock. Naturally, the cash influx helped Canopy’s balance sheet, giving it the confidence to expand.
However, CGC stock recently took a dive in the markets following an analyst warning. According to the report, Canopy is burning through cash “at an alarming rate.” As many of my InvestorPlace colleagues have pointed out, sustaining the expansion strategy would dangerously dilute shares. Clearly, this is a risk factor that anybody should carefully consider.
At the same time, this is the unfortunate practice that cannabis firms must do to position themselves for tomorrow. In that way, it’s similar to technology firms that absorb huge profitability penalties in the present to gain a market share foothold. Deciding if you believe the narrative is both the danger and the allure of CGC stock.
Touching $300 on an intra-day basis shortly after its initial public offering, Tilray (NASDAQ:TLRY) has certainly forwarded some impressive stats. Of course, winning in the markets is more than just posting one-off pretty numbers. And for TLRY stock, the journey has been decidedly negative since touching that psychologically significant benchmark.
As such, Tilray is among the worst-performing marijuana stocks. On a year-to-date basis, TLRY stock is down more than 75%. Similar to a wide swath of cannabis players, Tilray has failed to impress market observers with its fiscal performance. For example, top-line sales growth is somewhat modest for a growth-centric medical marijuana company. Moreover, its income losses continue to widen.
So, is there hope for TLRY stock? It’s a long shot, but there is a believable case. With international interest for medical cannabis rising, it could provide Tilray a pathway to recovery. As I noted earlier, even conservative Japan seems open to the idea of botanical therapies.
If you’re risk tolerant, you probably don’t want to remove TLRY from your list of marijuana stocks to buy just yet.
Out of the major marijuana stocks to buy, Aphria (NYSE:APHA) is a truly interesting name. A year ago, Aphria found itself in hot water after a damning short-seller’s report. It accused the company of shady dealings, acquiring assets that largely benefited corporate insiders as opposed to shareholders. Not surprisingly, APHA stock tumbled on the news.
Further, the controversy resulted in severe consequences. Part of these consequences involved the ousting of former Aphria CEO Vic Neufeld and co-founder Cole Cacciavillani. And outside of a temporary spike rally early this year, APHA stock has traded in a frustratingly sideways trend channel.
However, an intriguing point is that Hain Celestial’s (NASDAQ:HAIN) Irwin Simon stepped in as interim CEO, eventually taking over the job full time. For someone with such a strong professional repertoire as Simon, he’s taking a big risk with APHA stock.
Moreover, InvestorPlace’s Chris Markoch made the case that APHA stock could become a buyout target. As Markoch points out, Aphria is a profitable company, which is a rarity among marijuana stocks to buy. While still risky, I think there’s enough reward potential here to make APHA worthwhile.
GW Pharmaceuticals (GWPH)
I might get in trouble for listing GW Pharmaceuticals (NASDAQ:GWPH) among marijuana stocks to buy.
At the recent Morgan Stanley Global Healthcare Conference, GW Pharmaceuticals CEO Justin Gover expressed his frustration over being mixed up with the pure weed crowd. In his view, GWPH stock is a biotech investment.And maybe that’s the case. However, GW’s flagship drug, Epidiolex, is a cannabis-derived therapy for treating seizures.
Thus, I’m sorry to say, but Gover’s protests sound like a pop star complaining about singing the same song repeatedly. Just give the audience what they want and collect your millions. Also, there’s no such thing as bad publicity.
Enough of my rant. A substantial tailwind underlining GWPH stock is the opioid crisis. Opening the eyes of millions of Americans, the raging controversy demonstrated that even well-meaning traditional pharmaceutical companies can distribute therapies that render startling consequences.
As a largely natural treatment, Epidiolex shows great promise, especially in this environment. Therefore, I’d keep GWPH stock in your shortlist of cannabis stocks to buy, even if that descriptor frustrates the CEO.
Curaleaf Holdings (CURLF)
It doesn’t take much analysis to realize that the cannabis stocks to buy from last year really didn’t pan out this year. Unfortunately, with the sector losing fiscal credibility, the Street demanded firm results. When most companies couldn’t deliver, the entire market sub-segment suffered. That said, Curaleaf Holdings (OTCMKTS:CURLF) and CURLF stock are moving against the grain.
If you look at the charts for the prior marijuana stocks on this list, you’ll see prominent bearish trend channels. But with CURLF stock, shares have gone sideways since July. Also, since the last trading session of August, CURLF is up double digits. But can this momentum continue into the next year and beyond?
With cannabis stocks, you can never make absolutely confident pronouncements. Nevertheless, Curaleaf has made key acquisitions, including GR Companies. More commonly known as Grassroots, it’s the largest private vertically integrated multi-state operator. The deal also gives Curaleaf exposure to markets it wouldn’t serve without the acquisition.
As with almost every name in the cannabis segment, CURLF stock is a speculative play. However, I do like its strategic moves to consolidate the dispensary business.
Green Thumb Industries (GTBIF)
Another compelling opportunity among over-the-counter traded marijuana stocks to buy, Green Thumb Industries (OTCMKTS:GTBIF) has also gone against the grain.
Despite a spate of bullishness earlier this year, though, GTBIF stock has incurred its fair share of volatility. Between the beginning of May and the end of August, Green Thumb shed 41% of its market value. Still, its comeback in late summer while other cannabis stocks floundered gives food for thought, even if it did return to its YTD lows recently.
One of the powerful attributes supporting GTBIF stock longer-term is its branded cannabis assets. Earlier this year, Green Thumb made headlines when it acquired the vertically integrated For Success Holding Company. For Success’ claim to fame is Beboe, which is a premium cannabis brand unlike anything you’ve seen. Essentially, it’s the Williams-Sonoma (NYSE:WSM) of weed.
Now, that gives an edge to GTBIF stock because branding is what will distinguish top retail cannabis plays from the mediocre. That’s because growing marijuana isn’t rocket science. Thus, you need a distinguishing factor to stand out.
Harvest Health & Recreation (HRVSF)
A vertically integrated cannabis operator, Harvest Health & Recreation (OTCMKTS:HRVSF) provides comprehensive coverage for botanical enthusiasts. Part of the challenge involved in converting the curious to cannabis is information: the who, what, where, when, why, and most importantly, how.
Harvest Health’s website does a great job explaining the process for attaining medical cannabis cards in various states, ultimately helping the case for HRVSF stock through increased revenue opportunities.
Another point that’s alluring about HRVSF stock is the underlying company’s brands. Being vertically integrated, Harvest Health has multiple pathways to increase sales, such as retail stores and branded products.
For the latter category, Harvest features several oils, ointments and consumables, such as tinctures and CBD-infused protein bars. Especially in the midst of the vaping crisis, it’s very useful to have the ability to offer non-controversial cannabis platforms.
Sadly, it’s not all good news for HRVSF stock. Like other over-the-counter cannabis stocks to buy, Harvest shares have suffered badly this year. Just in this month alone, shares are down 15%. However, this might turn out to be a solid discount on an otherwise compelling business.
Innovative Industrial Properties (IIPR)
In my opinion, Innovative Industrial Properties (NYSE:IIPR) is one of the more underappreciated marijuana stocks to buy.
As a cannabis-centric real estate investment trust, Innovative Industrial owns the distinction as being the first cannabis company listed on a major exchange. The honor is particularly conspicuous as the overwhelming majority of direct cannabis investments are over-the-counter affairs.
So far, IIPR is proving it can hang with the big boys at the New York Stock Exchange. In 2018, IIPR stock gained 39%. So far this year, shares have skyrocketed to a whopping return of 54%. Against its IPO price, Innovative Industrial Properties has gained well more than 300%
Frankly, I’m not that terribly surprised that IIPR stock has outperformed. Sure, everybody wants to jump in on the sexy side of the cannabis business. But real estate is the foundation of this industry. If more state governments legalize weed to varying degrees, you can expect IIPR stock to continue rising higher.
Thanks to its high-potential longer-term strategies, Hexo (NYSE:HEXO) is an intriguing play. Unfortunately, like most other marijuana stocks, holding a position in HEXO stock has not been easy.
Since May of this year, shares have suffered a worrying decline as the Street teed off on the sector.
However, HEXO stock did go against the grain recently, shooting up nearly 11% for the Sept. 20 session. On that day, MKM Partners analyst Bill Kirk initiated a “buy” recommendation. He also forecast a one-year price target that placed a 129% premium against the Sept. 19 closing price.
Of course, no one should buy HEXO stock based on any one price upgrade. That said, Hexo offers intriguing upside potential. One of those tailwinds comes from its partnership with Molson Coors Brewing (NYSE:TAP). With CBD-infused beverages and edibles becoming increasingly popular, HEXO is well positioned to ride out this burgeoning market.
With most cannabis stocks, the underlying companies are headquartered in Canada. But cbdMD (NYSEAMERICAN:YCBD) calls Charlotte, North Carolina home.
That has significant advantages in terms of building consumer engagement and trust. The company also provides jobs for the American people, which is a valuable component of the YCBD stock story.
But one of the attributes that attracted me to cbdMD is their diverse product portfolio. From oils to tinctures to edibles, the cannabis firm provides several avenues to enjoy the benefits of non-psychoactive CBD.
Let’s face it: You’re probably not going to roll up a joint and give it to your grandmother as an introductory platform. But a tincture or gummy? They’re much easier conversation pieces, further bolstering the argument for YCBD stock.
Finally, cbdMD features an extensive line of pet CBD products called paw CBD. As we all know, Americans love their pets, and this isn’t just an emotional sentiment: Pet owners are willing to spend billions every year on their four-legged friends. And that really augurs well for YCBD stock as the pets market provides yet another viable revenue stream.
Acreage Holdings (ACRGF)
One of the established names in the legal marijuana market, Acreage Holdings (OTCMKTS:ACRGF) has generated more than a few headlines.
Over the years, Acreage has grown to one of the biggest cannabis firms in the U.S. As a vertically integrated name, investors of ACRGF stock have exposure to cultivation, production and dispensary facilities.
But those are really secondary reasons to own ACRGF stock. Instead, the key driver for Acreage is its deal with Canopy Growth. The latter will buy out the former for $3.4 billion. But here’s the catch: The U.S. first must legalize marijuana.
Logically, this implies that the U.S. must remove cannabis from its current Schedule I classification. Over the years, many have tried and all have so far failed.
Historically, that suggests ACRGF stock would never meet the criteria. However, as controversial as marijuana is, full legalization isn’t completely out of the picture. That’s because the maligned plant represents the fastest-growing job market in the U.S.
Whether you believe a recession is on the horizon or not, we’re certainly living in economically sensitive times. Legalizing weed can help alleviate some of this pressure.
Trulieve Cannabis (TCNNF)
An increasingly common factor among marijuana stocks to buy is that the underlying companies emphasize the holistic nature of the cannabis plant, and not just its stereotypical use.
That distinction carries through with Trulieve Cannabis (OCTMKTS:TCNNF). A company that primary focuses on the Florida dispensary market, Trulieve helps demystify medical cannabis, as well as provide patients with the assistance they need.
Like so many of the cannabis stocks we’ve covered, TCNNF stock has had a rough showing since the spring season. However, shares appear to have hit a bottom in late August, which might make the equity appealing to speculators.
Trulieve is one of the few cannabis players that’s consistently profitable in terms of operating and net income. That really separates TCNNF stock from its major competitors, as they’ve failed to satisfy Wall Street’s raised standards. At least this Florida-based dispensary is pulling in the numbers.
Scotts Miracle-Gro (SMG)
Not all marijuana stocks have to be speculative affairs, as Scotts Miracle-Gro (NYSE:SMG) demonstrates. Ordinarily, you wouldn’t consider Scotts Miracle-Gro a weed company. However, let me be blunt: Whatever agricultural growth products Scotts comes up with, the marijuana industry desperately needs. And that’s the basic thesis for SMG stock.
As the cannabis sector continues to tack on new entrepreneurs and customers, Scotts’ revenue will only increase. Therefore, you can expect fertilizer, hydroponics and lighting systems inventory to decline more than usual. To be fair, Scotts doesn’t generate a majority of its sales from marijuana. However, this means that SMG is diversified and not dependent on the burgeoning sector.
If you’re serious about cannabis investing, SMG stock is a great hedge against inevitable volatility. Not only that, Scotts pays a 2.3% dividend, something that very few marijuana companies can claim.
Similar to Scotts Miracle-Gro, AbbVie (NYSE:ABBV) is a renowned name that has exposure to the marijuana industry. But unlike Scotts, whose products are coincidentally beneficial to cannabis companies, AbbVie has actively utilized the plant in its business.
The company’s Marinol, a cannabis-based drug, found approval from the U.S. Food and Drug Administration. This therapy alleviates nausea or vomiting symptoms in chemotherapy patients. Marinol also helps people living with AIDS regain their appetite.
That said, I wouldn’t consider ABBV stock as this sector’s clean-up hitter. As pioneering as it is, Marinol only makes up a small portion of total revenues. Rather, use ABBV as a hedge against this market’s notorious volatility.
Also, ABBV stock has taken a big hit because of the various controversies impacting the broader healthcare segment. Now, with a 5.9% dividend yield, AbbVie looks interesting on its own merits.
Medicine Man Technologies (MDCL)
With the increased popularity of marijuana stocks, some names invariably fall off the radar. While most folks zero in on the major Canadian cannabis firms, you should also consider lesser-known names like Medicine Man Technologies (OTCMKTS:MDCL). On a year-to-date basis, MDCL stock is up a very robust 192%.
As a consulting firm, Medicine Man hits on virtually every corner of the weed business. From licensing and application support to maximizing cultivation output and turnkey facility solutions, the company offers critical services to marijuana entrepreneurs.
What makes MDCL more compelling than many of its smaller competitors is that we’re seeing substantive financial results. Revenue continues to grow substantially on an annual basis since 2016. This remains true on a quarterly basis as well. And in 2018, Medicine Man delivered a small profit for the year.
Don’t get me wrong: MDCL stock is still a speculative play. In the last three quarters, we’ve seen net income take a hit as the company expands. But so far, Wall Street likes what it sees.
Before we get into the details for MariMed (OCTMKTS:MRMD), I’m going to be straightforward. Based on the technical performance of MRMD stock, this is an extremely speculative play. Since the start of January’s session, Marimed shares are down more than 70%. That’s not just bad for marijuana stocks; it’s just plain awful.
However, what attracts me as a contrarian to MariMed is its business. Like Innovative Industrial Properties, MariMed specializes in the administrative and operational properties of the cannabis industry. Called seed-to-sale, MRMD helps cannabis entrepreneurs at all stages of their business. Currently, the company manages 300,000 square feet of botanical facilities, helping to make the case for MRMD stock.
Moreover, MariMed features relatively solid financials. In its most recent earnings report ending June 30, the company rang up $25.7 million, up 773% from the year-ago quarter. It also generated $4.7 million in net income.
While these numbers support the bull argument for MRMD stock, Wall Street has lacked confidence toward marijuana stocks. That said, the volatility provides a strong discount for those willing to gamble on a sector comeback.
Although not necessarily a household name here, Aleafia Health (OTCMKTS:ALEAF) is increasingly making its presence known up north. As one of Canada’s leading cannabis-based health clinics, Aleafia Health is having a strong year so far. In its most recent quarter, Aleafia’s gross profit increased to $2.9 million CAD, compared to a loss of $100,000 CAD in the year-ago quarter.
Impressively, the company has seen over 65,000 clinic patients. That’s particularly important as ALEAF stock is also levered to the indoor and outdoor cultivation business.
Additionally, Aleafia invests heavily in research and development for medical cannabis formulations. Currently, their research focuses on the treatment of opioid dependence, as well as chronic illnesses such as pain, insomnia, anxiety and eating disorders.
Fundamentally, there’s a lot to like about ALEAF stock. In my view, it has significant upside potential. However, due to the fallout among cannabis stocks, ALEAF stock was caught in the downdraft.
Admittedly, ALEAF stock is an ultra-risky name so only risk-tolerant individuals need apply.
Charlotte’s Web (CWBHF)
One of the benefits of full legalization in the U.S. is that it would give American companies opportunities they normally wouldn’t have.
Fortunately for Charlotte’s Web (OCTMKTS:CWBHF), it is headquartered in Colorado, which has long been a green-friendly state. Coincidentally, CWBHF stock is one of the strongest marijuana stocks to buy this year, gaining 64% YTD.
I’m just one voice in this sea of green. But if you asked me why Charlotte’s Web is so popular, I would simply point you to their website.
Featuring a clean, wholesome image, the company has done an excellent job mitigating the stereotypical representation of the cannabis plant. That really helps toward evangelizing the benefits of CBD- and hemp-based treatments, bolstering CWBHF stock.
Another tailwind is the product diversity. Many are curious about CBD, but they may not want to hit a bong. Charlotte’s Web offers consumables, oils and creams, facilitating the cannabis message innocuously. It’s a smart approach, one that has served CWBHF stock quite well.
New Age Beverages (NBEV)
Earlier this summer, I was skeptical about CBD-beverage specialist New Age Beverages (NASDAQ:NBEV). While there’s debate about the viability of this segment, recent data indicates that interest is soaring. According to Canaccord Genuity (OTCMKTS:CCORF), cannabis-infused beverages could become a $600 million industry by 2022. But what does that mean for NBEV stock?
On one hand, prospective buyers have every right to be excited. New Age owns the Marley brand, which has serious clout among botanical enthusiasts. But on the other hand, New Age also focuses on health-centric beverages.
I feared that their broader coverage would lead to higher expectations for NBEV stock. Unlike the other marijuana stocks, New Age isn’t a pure CBD play, so investors may not be as patient with it.
Unfortunately, NBEV stock has hemorrhaged over the last few months. However, the recent vaping crisis might benefit New Age in the long run. That’s because despite the present health scandals, people are still interested in cannabis-based products. They might not vape it, of course, but as a beverage, it’s a much more palatable platform.
Rocky Mountain High Brands (RMHB)
Ordinarily, beverage makers aren’t the best place to put your money. Competition is extraordinarily fierce, and minnows are easily swallowed up by the stalwarts in the business. But if you have some gambling funds you want to play with, take a look at Rocky Mountain High Brands (OTCMKTS:RMHB).
Like the previous idea New Age Beverages, Rocky Mountain’s claim to fame is its hemp-infused drinks, specifically its energy drinks. The potential upside opportunity lies within its competitors’ ingredients, which are often sugar-saturated. Rocky Mountain drinks provide a clear consumer alternative, which might play out given favorable sentiment.
That said, I’m not entirely sold on RMHB stock. Currently, shares trade for less than a nickel. This of course raises eyebrows. If you acknowledge the risks ahead of time, though, RMHB just might surprise you.
When I first wrote about 30 marijuana stocks to buy, 30 states allowed cannabis for medicinal purposes, while nine permitted recreational use. Now, 38 states have mixed marijuana laws, with 11 allowing recreational use. In short, the days of holding onto a draconian policy toward weed are coming to an end.
But where does one get advice on this unprecedented industry? That’s where AmeriCann (OTCMKTS:ACAN) comes in. Primarily a real estate and facilities services company, AmeriCann offers logistical and administrative support for “weedpreneurs.” In addition, ACAN has a licensing procurement division that specializes in winning lucrative cannabis licenses for their clients.
Like many top marijuana stocks, ACAN stock has experienced substantial volatility this year. In addition, shares are barely holding above the dollar mark. But if the cannabis industry continues to grow — and all indications suggest that’s the case — AmeriCann’s business will remain relevant.
Emerald Health Therapeutics (EMHTF)
Although marijuana stocks sometimes get a bad rap, it’s important to realize that many, if not most companies in this segment, feature medicinal or therapeutic products and services.
A prime example is Emerald Health Therapeutics (OTCMKTS:EMHTF). Specializing in innovative solutions geared toward specific ailments, EMHTF stock is one of the top names in the Canadian medical cannabis market.
One of the biggest draws for companies like Emerald is its product ingredients. Unlike pharmaceutical concoctions that feature artificially synthesized compounds, Emerald focuses strictly on cannabis.
In many ways, that provides confidence considering that the plant has a 5,000-year history in human societies. Also, there’s evidence that cannabis was used medicinally in 400 A.D.
But as compelling as the narrative is for Emerald Health, EMHTF stock has suffered a rough showing this year. Shares are down 36% year-to-date, and have shed 61% since the beginning of April. Thus, EMHTF is a gambler’s stock but an interesting one at that.
Village Farms International (VFF)
Because I’m listing Village Farms International (NASDAQ:VFF) in a list of marijuana stocks to buy, you might think the name is a double entendre. Surprisingly, though, that’s not the case.
Initially, Village Farms started off as a hydroponic grower of innocuous, everyday vegetables like cucumbers and tomatoes.
However, hydroponics have other botanical uses. And with legalization momentum gaining speed, it only made sense for Village Farms to expand into CBD-rich hemp. This year has been a particularly busy one for the company, with Village Farms entering a joint venture with Arkansas Valley Hemp to start growing hemp in Colorado. Moreover, it has a joint venture with Emerald Health under Village Farms’ Pure Sunfarms brand.
Under the latter joint venture, the entity can grow 75,000 kilograms of cannabis annually. That would make it one of the best-performing Canadian cannabis producers. Certainly, it makes VFF stock an intriguing pick, especially because the company is getting the business done.
MedMen Enterprises (MMNFF)
Cannabis stocks to buy are risky affairs. But even with that caveat, MedMen Enterprises (OTCMKTS:MMNFF) and MMNFF stock appear especially risky. Over the past several months, high-profile executives from the company have left. Furthermore, ex-CFO James Parker is suing MedMen, alleging wrongful termination.
It reminds me of the executive-level hemorrhaging at Tesla (NASDAQ:TSLA). Of course, the difference here is that Tesla is a global household name. On the other hand, MedMen can only claim that within enthusiasts’ circles.
Unfortunately, that’s not the only bad news. Tanking badly this year, the volatility in MMNFF stock suggests that the executives left for good reason.
But now that I’ve sufficiently scared you off this company, let’s talk about the good stuff. According to management, MedMen owns 7% of the cannabis market share in California. Bear in mind that the Golden State is home to the largest legal cannabis market in the world.
And because of MedMen’s extensive portfolio of retail licenses, MMNFF stock looks like a compelling speculative opportunity. Once its expansionary strategies wane, the company could also start turning profitable quickly.
Mentor Capital (MNTR)
Undoubtedly, one of this sector’s toughest barriers to entry is funding. Most mainstream banks and financial institutions won’t touch cannabis companies for completely understandable reasons. Because cannabis falls under the Schedule I classification, the federal government could crack down at any moment. It’s an underlying risk that sends shivers to bankers.
Thankfully for “weedpreneuers,” Mentor Capital (OTCMKTS:MNTR) has a much more open mind. Through its unique incentive structure, Mentor provides smaller cannabis companies necessary funding. But what makes Mentor different from its competitors is that it leaves total operating control to the client-company founders. It’s a refreshingly symbiotic relationship, especially in this business.
Admittedly, that’s where the good news ends for MNTR stock. Against January’s opening price, shares are down 42%. And while MNTR has stabilized in September, its subterranean price point makes it suspect.
Still, if we have another bullish wave for marijuana stocks, smaller investments like MNTR stock could skyrocket.
Novus Acquisition & Development (NDEV)
Financial institutions aren’t the only mainstream organizations that take a dim view of marijuana. Several health insurance companies refuse to cover costs associated with cannabis treatments and therapies. Cynically, I may add that insurance providers don’t benefit much from non-pharmaceutical endorsed solutions. Either way, marijuana-therapy patients are left with sizable bills.
To address rising costs associated with cannabis care, Novus Acquisition & Development (OTCMKTS:NDEV) offers the first marijuana-based health plan. Novus doesn’t just stop at common medical applications, either. They offer comprehensive plans for hemp and cannabidiol, alternative therapies and even dental and optical coverage.
But why I’m really intrigued by NDEV stock is the underlying company’s pioneering spirit. As the marijuana industry continues to boom, you can expect similar businesses to sprout in the future.
With that said, NDEV stock is a prime example of a good idea that’s a bit ahead of its time. Sadly, Novus’ valuation was gutted this year. Thus, this is an equity best suited for gamblers.
Medical Marijuana (MJNA)
Medical Marijuana (OTCMKTS:MJNA) is literally a company of firsts. In 2009, Medical Marijuana became the first publicly traded cannabis company in the U.S. A year later, it pioneered the direct-sales business model for weed products. A little bit down the road in 2012, MJNA became the first company to introduce cannabinoid foods and supplements to the mainstream retail market.
As a result, no list of marijuana stocks is complete without mentioning Medical Marijuana. But unlike what others might do in its situation, MJNA isn’t resting on its laurels. Instead, the company has been very acquisitive over the years, building a robust business portfolio. Furthermore, it is expanding internationally as legalization sentiment crosses borders.
Unfortunately, that message hasn’t resonated with the markets, sending MJNA stock to below 4 cents. One of the reasons is that the company has lost fundamental credibility, incurring increasingly heavy earnings losses in recent years.
Thus, the play here is that MJNA stock may recover in a return of bullish sentiment. However, it is absolutely risky and you should only play this with “stupid” money.
Real Brands (RLBD)
And finally, we’re down to our last idea for cannabis stocks to buy. If you’ve read this far, I congratulate you. With over 5,400 words, you’ve read the equivalent of 24 double-spaced pages. That, my friends, is lot of weed.
So, with this last pick, I’m going to share with you an opportunity that you may not have heard about. Real Brands (OTCMKTS:RLBD) CEO Jerry Pearring sent me a note about his organization, which specializes in CBD vaporizers, ointments, infused water and consumable therapeutics. While RLBD stock isn’t a household name, Pearring has extensive leadership experience in the consumer products industry.
As you might expect from lesser-known securities, RLBD stock features both sharp rallies and corrections. That said, I do find the consumable and direct-application therapeutic categories compelling as they afford CBD evangelism via non-offensive platforms.
Similar to any over-the-counter equity, you want to be careful with RLBD stock. Nevertheless, there might be substantial upside here, especially if sector sentiment returns.
As of this writing, Josh Enomoto is long HEXO, MRMD and ALEAF.