In a volatile market caught up in a correction cycle, it can be difficult for marijuana stock investors to balance out their portfolio. As FOMO investors continue to drive prices down and converge against pot stock analysts stll bullish on the market, picking the right cannabis stock to beef up a portfolio may seem a daunting task.
But the market is still has some pot stock plays worth looking into; some that can even keep a portfolio afloat during volatile shifts. Here are three marijuana stocks to balance your weak portfolio:
Hiku Brands Company Ltd.
When DOJA Cannabis Company Ltd. and TS Brandco Holdings Inc. (Tokyo Smoke) came together to form Hiku Brands Company Ltd. (CSE:HIKU), cannabis found its first marijuana stock with the branding power of Starbucks. Combining well-known brands like DOJA, Tokyo Smoke, and Van der Pop under one retail umbrella, the company positioned itself to become the ultimate consumer-focused pot stock with an eye on contemporary demographics.
"Today, I am proud to stand with a team of incredibly talented and thoughtful business partners as we launch Hiku and create the first great cannabis brand house." remarked Alan Gertner, Chief Executive Officer of Hiku. "A brand house, because cannabis is a consumer product, one that we believe can change the world. At Hiku, we look forward to playing a major role in driving this incredible industry forward."
With six Tokyo Smoke cafés and one DOJA café across Canada, Hiku’s retail footprint is impressive. Moreover, their craft-cannabis approach, with premium cannabis is grown in British Columbia's Okanagan Valley makes this weed stock the millennial of the marijuana industry. Partnerships with Aphria Inc. (TSX: APH) (OTCQB: APHQF) and WeedMD Inc. (TSXV: WMD) solidify Hiku as the marijuana stock play for the age of legalization.
As of January Hiku’s cash position was approximately $32.6 million, bolstered by a strategic $12.5 million financing led by Aphria. With a market cap just over $220 million and a share price just over two-dollars, this small cap weed stock is poised to turn cannabis into the next local coffee shop.
Newstrike Resources Ltd.
Following the fallout of their failed deal with CanniMed Therapeutics (TSX:CMED), Newstrike Resources Ltd. saw their pot stock prices tumble for a brief period. “I started to realize Aurora [was] hell-bent on getting this done at any price and… there was no way they were backing down and I think at that point we kind of realized with the team ‘ok let’s go to plan b here,” CEO Jay Wilgar told Cannabis Investing News.
Since then Newstrike has focused its priorities on branding and strengthened itself as a company. Recently, Health Canada’s Office of Medical Cannabis finished reviewing the license application of UP Cannabis Inc., Newstrike’s wholly-owned subsidiary, for the first phase of Niagara Facility. Moreover, UP Cannabis is set to make waves in the consumer branding sector of the cannabis industry, making this weed stock the comeback story of the year.
“The vast majority of Canadians, sure, they are looking for safe products they are looking for a controlled market that they are going into, but a lot of people are also going to look for a brand, just like they do with any other consumer good,” Wilgar continued.
Even in a volatile market, Newstrike has managed to turn around their fortunes, keeping their share prices stable where others have fallen. With a market cap of $500 million and a share price floating above $1.00, this cannabis stock play is one to pick up on.
Playing It Safe
Of course, for those looking to hop on the cannabis stock train with a bit of a safety net under their belt, there is one of the many exchange-traded funds on the market today. One of the more interesting plays in this area is the Evolve The Marijuana ETF (SEED.TO), which is geared towards Canadian investors. The fund invests in a diversified mix of equity securities, both domestic and international. What is interesting about this fund is that it has the ability to invest up to 10 percent into private cannabis companies. Still, for this looking for a safe marijuana stock play this is the way to go.