Canada is the most important cannabis market on the planet since they legalized it on a federal basis. However, the U.S. market is booming too, as states increasingly legalize cannabis for both medicinal and recreational use. This has led to an influx of money to the industry and the rise of organized businesses in place of corner dispensaries. Here are six cannabis companies that investors should keep an eye on.
Scotts Miracle-Grow
Scotts Miracle-Grow is a well-known lawn and garden products manufacturer. Their subsidiary Hawthorne Gardening is a major hydroponics company, and cannabis growers are a growing market for their products. Scotts Miracle-Grow is thus a safe investment opportunity for those who want to hold stock in a blue-chip company that is seeing significant profits from the cannabis industry without investing directly in that area. You’re literally investing in the “picks and shovels” side of the market, and you’ll profit from any home gardening boom, too.
Green Growth Brands
Green Growth Brands is a business whose purpose is to help other cannabis businesses grow. They have brought in a team of proven retail experts, and they help build and expand cannabis brands. This increases the sales and profitability of their clients. They help brands create an entire streamlined supply chain from product manufacturing to packaging to distribution and sale. They also develop retail opportunities and online sales for people in the industry.
MedMen Enterprises
MedMen is a pure-play marijuana stock, ideal for those who want to invest directly in the green revolution. Their market cap is estimated to be around two billion dollars. The company is a leader in cannabis retail stores; their largest presence is in California, but they have operations in four states. They choose locations to maximize sales, and their metric sales per square foot numbers beat top tech brands.
GW Pharmaceuticals
GW Pharmaceuticals is a biopharmaceutical company whose main product is derived from cannabinoids. Their initial products were used to treat epilepsy and muscle spasms caused by MS. They’re positioned to expand into the medical cannabis market. And they’ll profit from the increasing acceptance of marijuana derived drugs.
MariMed
MariMed has a six hundred-million-dollar market cap. This ranked them third in a list of U.S. marijuana stocks. However, that’s quite an achievement given that their 2018 gains surpassed 300%. They stand out for their broad investment in the industry. Their core business is in professional management services, helping small dispensaries get organized, formalize and scale their operations. They help a number of cannabis brands secure state licenses and handle the legal side of cannabis operations. On top of that, they manage several of their own cannabis brands from edibles to extracts to vape pens.
Canopy Growth
Canopy Growth was the first pure-play marijuana company to be listed on the NYSE. This gave the entire industry a new level of credibility. A major beer and wine company is investing in Canopy Growth to help it grow. This company is likely to end up a major wholesaler and retailer of cannabis. If you want to invest in a similar Canadian firm, then Tilray is right for you.
The US is expected to account for more than 80% of global marijuana sales and see continued growth for years to come. The companies we’ve identified are those poised to be at the forefront of that trend.
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