5 Pot Stocks You Should Consider Investing In 

5 Pot Stocks You Should Consider Investing In 

Pot stocks have made investors millions of dollars over the past few years. Fortunately, this trend is likely to continue as the world relaxes its views on cannabis and accepts it into the marketplace.



Aurora (ACB) 

Aurora, a Canadian company, is leading the pack in both expansion and sales. Aurora’s early strategy of acquiring companies around the world upset many investors since the company was using stocks for acquisitions. However, this method seems to be paying off. ACB now has active operations in quite a few countries around the globe such as Portugal, Germany, Thailand, Mexico, and Uruguay. 


Aurora’s stock has seen some interesting action over the past 12 months. It experienced a high in the $12 range, thanks to legalization in Canada last October. However, after that, it began a slow decline until the end of the year, where it bottomed out in the $4 range.

Fortunately for investors, the price rose steadily for the first five months of 2019, and peaked at $10  and change per share. Since then, it has followed the downtrend most pot stocks are experiencing at the moment and is resting in the $5.50 per share range. 


The price is low for ACB, and this, in addition to its business strengths, makes it a good pot stock investment. Predictions are that ACB will rise again and will probably hit the double digits before too long.


Canopy (CGC) 

Canopy has been making big moves to secure its future, including joining forces with American pot company Acreage Holdings (ACRGF). Earlier this year, shareholders from both companies approved a merger deal worth nearly $3.5 billion. With this deal, Canopy cemented its future in the American Cannabis market, assuring it a place when the U.S. goes fully cannabis-legal.

Canopy’s price action has been similar to Aurora’s. It dipped and peaked at the same time as Aurora on most occasions. However, Canopy experienced a few more spikes over the past year than Aurora thanks to Constellation Brands’ $4 billion-dollar investment. Canopy’s deal with Acreage Holdings also caused the stock price to jump.

Just like Aurora, Canopy’s price per share is low at the moment. It’s trading in the mid-20s consistently right now. Previously, it was trading in the 50s and 40s. Investors should see this as an opportunity to pick up some shares in a reliable company building for the future.


Village Family Farms (VFF) 

Village Family Farms is a great investment choice because they sell more than just pot. They produce quality greenhouse-grown tomatoes, cucumbers, and peppers. Having their irons in more than one fire makes them a stable company, more so than if they only grew cannabis.

The price per share of Village Family Farms has had its ups and downs over the past year, but it has not been as volatile as pot stocks. The price has remained within a stable range of $8-$18 per share.  The expectation is Village Family Farms will eventually break past their current trading range and enjoy a higher price per share in the near future. 


Medmen (MMNFF) 

Medmen is one of the premier cannabis companies in the U.S. After troubles with lawsuits and internal executive battles, Medmen still stands strong as a strong investment. The national cannabis company has operations all over the U.S., with flagship stores in Los Angeles, New York, and Las Vegas. Their Southern California operations make them one of the best California pot stocks.

Medmen’s price spiked at the time of Canada’s legalization, and traded in the $4 range for a while. Slowly, the price per share dropped after the legalization, but it enjoyed a short rebound. Now, it’s trading very close to its 52-week low of $1.72. The low price for this great and expanding company makes it a buy as it will most likely go back up.

Investing takes different forms, and there are ways to lose money and win money with pot stocks. Some investors prefer shorting cannabis stocks while others day trade them.

Then you have your long-term investors who buy when it’s low and forget about their cache of shares for a few years. Whatever your strategy, pot stocks offer a great investment opportunity now and for the foreseeable future.

Emerald contributor since April 2019

Comments

Your email address will not be published.