If you want to build a truly diverse portfolio, then it is worth paying attention to a few of the other guys on the stock exchange. With the market the way it is, it would not be wise to underestimate these pot stocks. Whether you are looking at the Canadian Stock Exchange or America’s own NASDAQ, these are the five pot stocks we need to talk about in this fickle market.
Isodiol International Inc.
Isodiol International Inc. (PINX:ISOLF) was just formally listed on the Canadian Stock Exchange last week. The listing came shortly after Isodiol established an international footing in the cannabis industry. Setting up assets in the UK, China, and Brazil is giving Isodiol an epic international footprint that could eventually pay off.
The cannabis company is focused on CBD extracts and organic hemp, the latter processed in a brand new facility in China. Their role in China could be the deciding factor that sets this pot stock apart. Isodiol purchased three patents from Chinese-based Hankang Biotech Company. According to the press release, these patents are key to their “sophisticated industrial production process” for extracting CBD.
Isodiol’s role on the global stage is due to increase revenue and make this pot stock stand out against the rest. CEO Marcos Agramont recently clarified such by saying, “The acquisitions ensure the company has continued sources of CBD and scalability of production… The addition of the intellectual property and likelihood of obtaining an approved active pharmaceutical ingredient designation will ensure that the company holds its position as the world’s leading purveyor of CBD.”
Another company focused on oils, Organigram Holdings (NASDAQOTH: OGRMF) recorded a net income of $1.1 million in their second quarter. CEO Greg Engel credits the completion of their second phase cultivation expansion with the company’s record-breaking growth.
Pot Network reported on their newest facility last week. Organigram will process 22,000 kilograms of cannabis next month. The third phase of expansion is scheduled to finish in June, potentially bringing in over $100 million in cannabis for the company.
Organigram boasted a hefty 65% increase in flower sales, but the sale of their cannabis oils jumped a whopping 297% between 2016 and 2017. As The Motley Fool points out, this indicates how important cannabis oils are to the cannabis industry. Trends predict that cannabis oils are becoming more and more popular among pot smokers and medical marijuana users. For investors, keeping an eye on the pot stocks invested in cannabis oils could be a wise move in this capricious market.
Liberty Health Sciences Inc.
Holding its own in the United States is Liberty Health Sciences Inc. (CSE:LHS, OTCQX:LHSIF). In late March, Liberty acquired a 75% ownership in Massachusetts’ William Noyes Webster Foundation (WNWF). The foundation is already well-equipped to take on the growing cannabis industry in the state, with a cultivation facility and dispensary already in construction.
Liberty purchased their share for $16 million, but it should prove to be a wise investment. The WNWF already has the appropriate integrated medical cannabis licenses for the state, and the foundation is already approved to build an additional two dispensaries in Massachusetts. The money from the transaction will also be used to apply for the state’s recreational marijuana license.
With this acquisition, Liberty is poised to start cultivating and selling pot in Massachusetts almost immediately. But in Florida, sales have already begun. Liberty opened their second dispensary in St. Petersburg on April 17. Two more dispensaries will be opening in May, giving Liberty a stronghold in a state with more than 93,000 registered medical marijuana patients. Even if America is slow to start in this industry, the smartest pot stocks will take advantage of individual states’ markets where growth is almost a guarantee.
General Cannabis Corp.
As another pot stock to earn a spot on the American stock index, General Cannabis Corp. (OTCQB:CANN) announced huge financial results for fiscal year 2017. General Cannabis saw a $5 million growth in total assets from 2016 to 2017, equaling a 454% increase. This exponential growth is due to General Cannabis’ diverse business structure, which includes clothing line Chiefton Supply Co. and security firm Iron Protection Group.
Each of General Cannabis’ subsidiaries touches on different elements of the cannabis industry. These ancillary companies could be the key to their success story and strengthen their hold in the market. Joe Hodas, the Chief Operation Officer of General Cannabis, is focused on nurturing each segment of the company’s business model.
“I have spent extensive time with each of our segment leaders, diving into staffing models, revenue projections and challenges,” he said. “With initial analyses in hand and the existing General Cannabis infrastructure, I believe we can capitalize on new lines of business, cross-sale opportunities between segments, and operating efficiencies.”
Namaste Technologies (PINX:NXTTF) announced a sales growth of 195% this week when they published their financial performance for the second quarter. In an interesting turn, Namaste also reported an increase in selling expenses of over $1 million. While this is barely a scratch on the surface of their record sales of $5.6 million, it is worth noting that this pot stock is not afraid to spend a little money to get ahead.
Sean Dollinger, President, and CEO of Namaste explained the company’s expenses in their official Q2 statement, stating, “Advertising expenses related to online search services as well as other online promotional and social media tools utilized by the company to generate sales. These costs further represent the Company’s significant investment into search engine optimization and its ongoing customer acquisition strategy.”
Namaste’s investment in the customer experience reflects the unique role social media and online advertising play in the cannabis industry. Their telemedicine platform – NamasteMD – is directly related to this online experience. It gives patients access to doctors, and eventually dispensaries, who can prescribe and fill medical marijuana prescriptions without ever leaving their homes.
Although cannabis sales through NamasteMD are yet to be launched, Namaste anticipates these online sales to increase the company’s quarter-to-quarter growth directly. This would explain why the company invested so heavily in this part of their business. A pot stock that focuses on customer experience could be one of the biggest winners as this industry continues to evolve.