The Best and Worst Marijuana Stocks In A Volatile Market
Cannabis legalization in Canada created a marijuana stocks in a frenzy. Last week alone saw cannabis stocks jump up and down after news broke that the Canadian government sought to implement an additional round of cannabis taxes on the industry.
The move put investors in a tight spot. With marijuana stocks seen as riskier than ever, most investors are feeling timid about parting with their money. Still, pot stocks do have some potential. Here’s a look at some of the best and worst marijuana stocks on the market today:
Best: Aurora Cannabis Inc.
Aurora Cannabis (TSX:ACB) (OTCQB:ACBFF) is one strong pot stock that marijuana investors should be watching. Merging with MedReleaf put them well over the 500,000-kilogram mark for cannabis production, and their international expansion plans present a pretty optimistic point of view of the future, especially when it comes to the American market.
A prospective agreement with Molson-Coors could be on the horizon as well. “We’ve said specifically we’re interested in the infused beverage space and we do intend to enter that market,” Chief Corporate Officer Cam Battley told the Montreal Gazette last month.
Aurora has had its fair share of ups and downs, but with a market cap over $5 billion and a promising PLAN FOR THE FUTURE?, the cannabis producer could withstand the volatility of this market.
Worst: The Green Organic Dutchman
One cannot mention Aurora Cannabis without mentioning The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) these days. Aurora’s $78 million investment in the organic cannabis producer put TGOD on everyone’s radar. Their subsidiary, Aurora Larssen Projects Inc., is overseeing the design and construction of TGOD’s new high-tech production facility in Quebec to ensure that it meets Aurora’s “Sky Class” standards.
Unfortunately, TGOD has seen its fair share of trouble recently. Most notably, the Hamilton City Council just rejected the company’s plan for expansion by a vote of nine to four, forcing them into a long, drawn-out appeal process. But that might not even matter considering images of the site earlier this year showed barely a brick had been laid.
TGOD is a marijuana stock favorite of price pumpers across the board, which is why investors should stay far away.
Best: Kush Bottles
Kush Bottles (OTCQB:KSHB) may prove to be a safe bet for cannabis investors who do not want to be directly involved with marijuana flower. As an ancillary company, Kush provides packaging, supplies, accessories, and tools, including solvents and vaporizers.
Revenue is up 117 percent so far this year, and the company is launching itself into new markets to maintain the momentum. Recent acquisitions extend Kush’s reach into branding, design, and distribution. Diversity and innovation are playing a major part in Kush Bottles’ portfolio, a strategy that might just pay off by year’s end.
Worst: MedMen Inc.
MedMen Inc. (CSE:MMEN) (OTCQB:MMNFF) makes the worst marijuana stock list after reports came out that the company was taking employee tips. According to reports, MedMen began deducting employee tips from their employee's paychecks, sometimes placing them in the negative/
With assets in four states, they are the largest American company to trade on the Canadian Stock Exchange. However, their prestigious attitude has turned off some. MedMen just opened a new dispensary on Las Vegas’ historic Fremont Street. With a market cap over $550,000, MedMen could be the penny pot stock from California that could pay off with the right investment strategy, but their alleged practices leave much to be desired.
Best: Canopy Growth Corporation
Canopy Growth Corp. (TSX:WEED) (NYSE:CGC) is pulling positive numbers this quarter, with a two percent increase over this same time last year. Their recent statement in June boasts about their ample inventory and fourth quarter finances, which includes a 95 percent increase over last year’s annual sales.
Like many pot stocks, they have expansion plans to establish their brand in South America, but their latest move to acquire Hiku Brands should pique investors’ interests. Canopy’s the second largest cannabis producer in the market right now, but with this acquisition, they could really up the ante on their branding. Which would be just in time for recreational sales in October. As summer comes to an end, Canopy Growth could prove to be a pot investor’s safest bet.
Honorable Mention: Tilray
Tilray (NASDAQ:TLRY) closes out this list because the odds appear to be in their favor. The Canadian medical marijuana company is the first cannabis grower to complete an IPO on a U.S. stock exchange.
Tilray opened to a twenty percent jump last Wednesday, and shares were selling for over twenty dollars by noon that first day. The market is fickle, but an optimistic investor could see this warm welcome as a positive sign of things to come.