Changes in regulations have brought profits into the main focus, which is why the industry of cannabis appears to be one of the most profitable in the present state in the market.
At the same time, companies that are working with cannabis and are publicly traded have shown immense progress in the market, while individual investors as well as companies, have shown interest in investing in cannabis giants.
Cannabis Stock Forecast: 2019 Predictions And Top Marijuana Stocks To Buy Now [Cannabis News Tody]
Investing Trends 2019: Top Names in the Cannabis Industry and Reasons to Consider Investing in Publicly Traded Growers – Perhaps one of the biggest and fastest growing trends emerging during the last several years goes to the prominent and up until recently illegal, cannabis industry.
While the industry of growing cannabis and manufacturing cannabis bi-products and edibles is still illegal in greater part of the world, many countries in the US, as well as Canada, decided to make medicinal marijuana legal, while in Canada, cannabis is legal for recreational use as well.
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Top Prominent Companies in the Cannabis Industry
The fact that cannabis-related companies are already issuing Initial Public Offerings says a lot about the way the industry of cannabis and cannabis-related products in developing in the last several years.
Some of the most successful companies in the sector with publicly traded stocks are Canopy Growth Inc (NYSE: CGC) and Aurora Cannabis (NYSE: ABC). Investors are rather optimistic regarding the growth rate of Canopy Growth Inc, as the company managed to achieve a growth rate of 60% during the course of only 6 months, which means that this cannabis grower has been collecting 10% of rises from month to month over the course of the last two quarters.
One of the largest alcohol production companies, Constellation Brands have even invested 4 billion dollars in Canopy Growth Inc, back at the beginning of Q3 in 2018, while Canopy decided to expand their services and start selling different goods made from cannabis.
Another company in the industry that is attracting investors’ attention for all the right reasons is Aurora Cannabis, another cannabis giant, involved in selling medicinal marijuana.
With companies as Aurora Cannabis and Canopy Growth Inc, the industry of cannabis is expected to reach a total market cap of 23.4 billion dollars in the US alone by 2022.
Marijuana IPOs in 2019
These companies could be the next hot pot stocks
U.S. companies, especially those that don’t actually touch the cannabis, are expected to aim for listings.
According to Marketwatch report, here are some of the cannabis companies that could go public in 2019.
Here are some of the cannabis companies that could go public in 2019.
Pax Labs
The cannabis-focused vaporizer company raised $20 million from investors in October and was founded by James Monsees and Adam Bowen, who also launched the nicotine vaporization maker Juul. Juul has separately been valued at roughly $15 billion by investors, which now include Marlboro maker Altria Group Inc. MO, -2.25%
At the moment, Pax produces vaporizers designed to be used with cannabis flower, and a pen and pod system for use with cannabis oil. Pax hired Bharat Vasan, a seasoned executive who has spent 15 years in consumer hardware, as chief executive in 2018. Because Pax does not produce or touch marijuana, it’s possible it could list on a major exchange like the New York Stock Exchange.
In a statement Friday, Vasan said, “To support the rapid growth at Pax, we are planning a large round of funding in 2019 ahead of a potential public offering.”
KushCo
With a recreational pot market larger than Canada’s, California is home to hundreds of cannabis businesses of various sizes and stages of development, but none are allowed to list on large exchanges because they are illegal by federal law. One business that will seek to break onto a big U.S. exchange is KushCo Holdings Inc. KSHB, -0.27% , a Garden Grove, Calif.-based operator that produces packaging for various forms of marijuana products, among other business units that do not involve actually touching the plant.
The company is currently traded over the counter in the U.S. and logged 2018 full-year losses of $10.2 million on revenue of $52.1 million, up from a small profit of $69,464 and sales of $18.8 million the year before. CEO Nick Kovacevich said in a telephone interview that the company dipped into losses on purpose, because after a recent fundraising round it planned to grow its top line before it swings back to profitability in 2020.
Kovacevich said the company is trying to list on the Nasdaq or NYSE in the first half of 2019 and has been focused on an IPO for the “past several months.” Kovacevich said KushCo will be one of the first stocks that will allow institutional investors to bet on the cannabis industry, and that the company will be a much safer, better alternative to investing in companies listed on the CSE or elsewhere.
Harborside
Doing business as FLRish IP LLC but commonly known as Harborside, after the chain of retail pot shops it operates in the San Francisco Bay Area, this company has made no secret about its plans to list on the CSE in 2019. According to CEO Andrew Berman, Harborside aims to raise roughly $50 million through a private placement and plans to list within the first quarter of 2019. While the company used to operate as a nonprofit medical cannabis dispensary, Berman has been moving the enterprise to a for-profit business, and a part of that has been its capital markets strategy — though he said neither the company’s nonprofit mission nor its services will change.
Like other companies listing on the CSE, Berman said that Harborside will complete a reverse takeover of an already existing and listed entity. The company plans to use the additional capital to expand its current retail operations and cultivation facilities near Salinas, Calif., among other things. Berman says Harborside aims to file a listing statement before the end of 2018.
Marijuana data companies
Since it’s illegal under federal law, data on the cannabis industry has been hard to come by. But as more states have legalized both recreational and medical pot, a slice of the sector has emerged to cater to various pot producers hungry for market intelligence. At the moment, there are three market leaders: BDS Analytics Inc., Frontier Financial Group Inc. (New Frontier Data), and Headset Inc. Any one of them could IPO in 2019.
Like Pax and KushCo, they do not directly handle marijuana and may be able to list on a major exchange like the Nasdaq or NYSE. Headset and Frontier did not respond to a request for comment. BDS said it has no plans to go public “at this time.”
Israeli medical marijuana producers
Israeli parliament has approved a law that will allow companies within the country to export medical pot late Tuesday. Though the bill still needs approval from cabinet members and the country’s prime minister, one of the eight companies cultivating medical pot in the tiny country, InterCure Ltd., has said it plans to list on the Nasdaq in mid-2019. The company cultivates weed at one farm in Israel and is building grow facilities in 10 other countries in Europe, where it aims to sell medical pot. The company told Reuters it is now producing about five metric tons of cannabis a year, and plans to produce more than 100 metric tons in the next 18 months. InterCure stock has gained 1,223% this year.
10 Top Cannabis Stocks 2019
According to InvestorPlace, here are the top 10 stocks to buy now: This story was originally published in December 2018. Marijuana stocks suffered sharp losses over the past six months, but the cannabis industry is growing in prominence.
Tilray (TLRY)
Tilray (NASDAQ:TLRY) easily represents the most interesting and controversial picks among marijuana stocks to buy for next year. Within a few months after its initial public offering, TLRY stock pulled a ten-bagger. But as you know, the victory was short-lived, and Tilray came crashing down to earth.
Naturally, several analysts and commentators blasted the company as an unsustainable bubble. Keep in mind, though, that since its IPO, TLRY stock is up over 470%. I wouldn’t dismiss such a performance as a failure. Moreover, shares have stabilized near the $100 level. If this company was as terrible as the bears claimed, I doubt TLRY would ride this support line.
Now, it’s easy to dismiss any individual opinion. It’s much harder when a banking giant like Barclays (NYSE:BCS) increases their position. [Ed’s Note: Barclay’s has since liquidated its common share position as of its most recent filing.]
Canopy Growth (CGC)
The prior two months have not been for Canopy Growth (NYSE:CGC). Taking a similar route to most other marijuana stocks, CGC dropped 26% in October. The following November appeared promising, building off a sharp burst of momentum. Unfortunately, the rally lost traction and CGC ended up losing double-digits for the month.
But what I like about Canopy Growth is that true to its name, it’s a steady grower. Despite the recent sharp losses, its longer-term bullish trend channel remains intact. I wouldn’t consider hitting the panic button unless shares started to decisively fall below the $25 level. That said, I think the broader fundamentals favor CGC stock.
Tilray has a financial institution backing it. For Canopy Growth, they have alcoholic-beverages maker Constellation Brands (NYSE:STZ). This is a trend that investors, even the skeptical ones, shouldn’t ignore. Big money is increasingly stepping into the cannabis sector, making CGC one of the best stocks to buy despite its well-publicized setbacks.
Cronos Group (CRON)
While most marijuana stocks have struggled to rekindle their prior catalysts, Cronos Group (NASDAQ:CRON) currently stands above the competition. For the month so far, CRON stock has streaked to an amazing 39% lead. Of course, most of that optimism comes courtesy of Altria Group (NYSE:MO).
The iconic tobacco company made headlines when it announced a partnership with Cronos. The deal, worth $1.8 billion, provides CRON with a boatload of cash to further develop its cannabinoid (CBD) products. On the other side of the fence, Altria needs something fresh to reinvigorate its traditional tobacco business.
A key long-term synergy could be the vaporizer market. Vaping CBD e-liquids have taken off in terms of popularity. Altria has attempted to break into the vaporizer market with its own heat-not-burn tobacco products. But with Cronos’ expertise in CBD, Altria has another angle in this sector to work.
In the meantime, feel free to put CRON in your list of best stocks to buy for next year.
Aurora Cannabis (ACB)
Aurora Cannabis (NYSE:ACB) has suffered a disjointed long-term performance in the markets, even compared to other marijuana stocks. In 2017, ACB stock shot from near-obscurity to the toast of Wall Street. This year, ACB has shown flashes of brilliance, but little to show for it overall.
I expect the cannabis sector to wake from its slumber. When it does, the currently embattled ACB has the potential to become one of the best stocks to buy for 2019. The markets really haven’t responded positively to Aurora’s buyout of Farmacias Magistrales. Farmacias made news when it became the first, and so far only Mexican importer of raw materials that contain the psychoactive component THC.
The buyout allows Aurora a viable channel to Latin America’s medical-marijuana market. In addition to Farmacias, ACB has operations in Colombia and Uruguay. Should the industry establish medical breakthroughs in Latin America, advocates will pressure the U.S. to further loosen federal cannabis restrictions.
Auxly Cannabis (CBWTF)
One of the most common misconceptions is that legal-cannabis advocates are only “fronting” to get high. While that use is unavoidable, the botanical industry has several legitimate applications. On the business aspect, several investors assume that all cannabis companies focus on growing weed.
But as Auxly Cannabis (OTCMKTS:CBWTF) demonstrates, marijuana stocks feature the same vibrancy and dynamism as other commodity related investments. Auxly specializes in all areas of the legal-cannabis supply chain, with a primary focus on upstream operations. This involves partnering with companies that grow the actual product.
In addition, CBWTF levers a viable midstream operation. This includes activities such as extraction, processing and branding. It also involves longer-term efforts like research and development.
The biggest advantage for CBWTF to pull this streaming business off is its balance sheet. With a favorable cash-to-debt ratio, Auxly can make key acquisitions and investments while the cannabis market is still young.
Origin House (ORHOF)
Formerly known as CannaRoyalty, Origin House (OTCMKTS:ORHOF) is another cannabis firm that made its name through streaming businesses. And while it still generates some revenue through its initial line of work, ORHOF has become a powerhouse in branding.
The proof is in its utter domination of California. Unbeknownst to me prior to this write-up, the Golden State is the world’s largest legal cannabis market. With a title like that, it’s a wonder how anything gets done around here. Joking aside, Origin House boasts more than 450 California-based dispensaries and more than 50 popular brands.
In other words, if you can make it in California, you can make it anywhere. This bodes very well for ORHOF stock. Last month’s midterm elections proved that legal weed is gaining serious momentum. Inevitably, more recreational markets will open, allowing Origin House to expand its dominating presence.
Marimed (MRMD)
Let’s face facts: Marijuana stocks don’t exactly have the greatest reputation for stability. That goes five-fold for over-the-counter offerings. One notable exception to this rule is Marimed (OTCMKTS:MRMD).
While other sector players hemorrhaged severely during the October rout, MRMD stock actually enjoyed a standout performance, gaining nearly 19%. That said, Marimed eventually gave up those gains and then some. Since the first of November, MRMD is down a little over 17%.
Still, I think it’s fair to say that compared against other marijuana stocks to buy, Marimed has held up well. Heading into the new year, MRMD has the potential to turn heads.
Its biggest advantage is its highly demanded consultation services. Covering everything from licensing application support to facilities management, MRMD provides relevant and critical insights for budding entrepreneurs. Plus in my opinion, Marimed levers one of the brightest and well-rounded leadership teams in the marijuana industry.
Medmen Enterprises (MMNFF)
Marijuana retail outfit Medmen Enterprises (OTCMKTS:MMNFF) suddenly became one of the best stocks to buy in botany around mid-October. Within a matter of days, MMNFF stock skyrocketed over 60%. But like most over-the-counter affairs, Medmen gave up its profits just as quickly.
Since its peak closing price, MMNFF stock has dropped a humbling 53%. I get that most investors will balk at such volatility. However, for the speculator, I sense serious growth opportunities for Medmen.
The company has established itself as a retailer of premium cannabis products. Yet many investors may not appreciate that Medmen is a vertically integrated organization. From its upstream production operation down to extraction, branding and distribution, Medmen essentially controls its supply chain. This is a “farm-to-bong” business at its finest.
As Medmen CEO Adam Bierman stated recently, this structure affords the company generous margin-expansion possibilities. Further, the aforementioned high-profile deals only help validate smaller players like MMNFF stock.
Aleafia Health (ALEAF)
Broader and sector weakness has hurt virtually all marijuana stocks. However, the lesser-known names have experienced disproportionate pain. Unfortunately, this is something that Canadian cannabis firm Aleafia Health (OTCMKTS:ALEAF) knows all too well.
But despite its severe market loss over the past two-and-a-half months, ALEAF stock offers a speculative opportunity for risk-takers. For starters, the underlying company features the largest network of referral-only medical cannabis clinics in Canada. Furthermore, their patient base continues to increase as the industry gains social recognition and acceptance.
Management has also invested heavily in cultivation facilities, targeting an annual growing capacity of 98,000 kilograms in 2019. Most importantly, Aleafia has the substance to back up the outlook. In its most recent third-quarter earnings report, the company increased revenue 36% year-over-year.
Diego Pellicer Worldwide (DPWW)
We’ve arrived at the end of our journey regarding marijuana stocks to buy in 2019. In keeping with my loose tradition, I like to throw in an extremely speculative name. And don’t roll your eyes at me: you know you want to know!
The following idea comes from an InvestorPlace reader named Anthony. He asked my opinion regarding Diego Pellicer Worldwide (OTCMKTS:DPWW). My answer to him is the same one I’m giving to you, which is that DPWW stock is extremely risky. Aside from its distressingly low trading volume and market capitalization, Diego Pellicer lacks financial strength to convincingly pull off its licensing and royalties business model.
However, I’m intrigued with its premium branding business. Not that I would know, but Diego Pellicer specializes in high-class cannabis products. As companies like Origin House and Medmen have proven, cannabis users eschew quantity for quality. That could lead to a surprising turnaround for DPWW stock.
Or you can lose every cent that you put in.
Top Cannabis Stocks 2019 – SeekingAlpha
According to Seekingalpha contributor Cornerstone Investments, here are the top cannabis picks 2019:
Top Canada picks: Canopy, CannTrust, HEXO, OrganiGram.
Top U.S. picks: Recommend a basket approach including a number of multi-state operators (“MSO”) and Charlotte’s Web and KushCo.
Top picks from Zacks Rank:
GW Pharmaceuticals (GWPH)
Focuses on discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the cannabis plant. The cannabinoid drug maker is expected to see an uptick in sales this year, especially after its lead drug, Epidiolex, became the first cannabis-derived drug to gain approval from the FDA.
Earnings for GW Pharmaceuticals, a Zacks Rank #2 (Buy) stock, is projected to gain 5.13% in the next quarter. The company has outperformed the Medical – Products industry so far this year (+56.5% vs +9.4%).
Innovative Industrial Properties (IIPR)
Also a #2 (Buy) on the Zacks Rank, focuses on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities.
With more states in the United States giving cannabis the green light, Innovative Industrial Properties has incentive to acquire additional properties. The stock’s expected earnings growth for the current year is 64.2%, and the company has outperformed the REIT and Equity Trust – Other industry on a year-to-date basis (+44.2% vs +13.6%).
KushCo Holdings (KSHB)
Operates a creative design agency for cannabis and non-cannabis clients that provide brand strategy, design and marketing, Web application development, and e-commerce solutions.
KushCo, by the way, had acquiredSummit Innovations known for manufacturing hydrocarbon gases. These gases are necessary for converting cannabis plants into oils, and we all know that oil generates more profits than traditional dried flower.
Next year’s earnings could grow over 100%, and the stock, a #3 (Hold) on the Zacks Rank, has gained over 14% since January.
Canopy Growth (CGC)
Engages in growing, possessing, and selling medical cannabis in Canada. In fact, in terms of aggregate sales, Canopy Growth may find itself at the top spot. The company’s annual production comes in at more than 500,000 kilograms and is positioned to increase on branding and partnerships.
While shares of Zacks Rank #3 (Hold) CGC have only gained around 8.5% this year, it has a huge cash stockpile that far surpasses its peers thanks to Constellation Brands’ (STZ – Free Report) hefty $4 billion investment made last year.
Wow what a great article!