Now that October is upon us, it’s time to start positioning our portfolios for the second phase of legalization. The introduction of extracts and edibles in the industry is sure to drive new consumers, new interests, new innovation, and new profits.
In addition to the companies that are solely focused on extraction, there are also a number of licensed producers that will benefit as well as other companies that are exposed to the industry as a whole.
The increased consumer interest in the sector will help drive the incentive to innovate and will surely help to create a growing cycle within the industry that should be nurturing for all companies.
So, with that being said, here are the top five stocks to buy today.
5. Canopy Growth
A top cannabis stock list would be incomplete without listing the industry leader, Canopy Growth. Canopy has been ahead of its competition since day one with its strategies and operations.
It has solid proprietary research and innovation, has partnered with celebrities to create different product lines, and has one of the largest growing capacities of any public company.
Canopy is a top investment because it’s almost sure to grow with the industry, as it’s so large and tied to the future of the entire sector.
Its stock has come off its highs by more than 50% this year, offering a prime opportunity before the second wave of legalization.
4. Village Farms International
Village Farms International makes the list because of its unique position and strategy. Prior to its entrance into the cannabis industry, Village Farms operated greenhouses full of vegetables.
It still operates these greenhouses in the U.S and Mexico, where cannabis isn’t federally legal, and in Canada it has transitioned to growing cannabis.
Its experience gives it an advantage over its peers in addition to it pre-positioning itself for the eventual legalization of cannabis in America by converting its already operating greenhouses.
Another thing that makes it a top investment is that its vegetable operations are keeping the company profitable, while the cannabis industry goes through its growing pains.
3. Canopy Rivers
Canopy Rivers is a top company for those investors that want exposure to the sector but in nontraditional ways. Canopy Rivers is a venture capital cannabis company that has already evaluated more than 1,500 investments.
The companies it has made investments in span all sectors and really give the company diversification of potential future returns, while helping to minimize the risk of those investments that may not pay off.
The exposure you get from Canopy Rivers you can’t get from any other stock in Canada, which makes it unique and one of the top five best investments.
2. Neptune Wellness Solutions
Neptune Wellness Solutions is the top extraction company in Canada that should really benefit when the market for edibles becomes fully legalized later in October. It has a history in the health and wellness business, which gives it some operating experience as well as synergies with its cannabis business.
It has also acquired a U.S. hemp company, which offers its own synergies as well as positions the company for U. S. legalization, similar to Village Farms.
The extract and edibles market is expected to be a huge portion of the cannabis industry which will drive new consumers, and Neptune is at the forefront of that, poised to benefit once legalization comes.
WeedMD is the top investment for a few reasons. First and foremost, it’s extremely cheap as well as already profitable.
Looking at some of the better valuation metrics for the cannabis industry, it’s clear that WeedMD offers investors the most value.
It also has exposure to the extraction and edibles side of the industry through its wholly owned company and brand CX industries.
WeedMD is the most well-rounded investment of the bunch, but most importantly, it offers the most safety and stability, which investors should prioritize in a volatile industry such as cannabis.
There are a number of other opportunities that exist; however, these five offer investors the best opportunities, so making investments in them should be done sooner rather than later, so you don’t miss out on any golden opportunities.
Marijuana was legalized across Canada on October 17th, and a little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
Besides making key partnerships with Facebook and Amazon, they’ve just made a game-changing deal with the Ontario government.
This is the company we think you should strongly consider having in your portfolio if you want to position yourself wisely for the coming marijuana boom.
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Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool owns shares of Village Farms International, Inc. Village Farms is a recommendation of Hidden Gems Canada.
Source: The Fool
The Top 5 Pot Stocks to Buy Ahead of Cannabis 2.0