As cannabis becomes more and more mainstream, many are looking to invest in the booming industry. But with so many stocks to choose from, it can be hard to know which ones are worth watching.
Researching your options before diving in headfirst allows you to get a better picture of who you're investing in. This includes deciding on what type of company you'd like to put your money into. For example, do you want to invest in plant-touching businesses like dispensaries or growers? Or would you instead stick with ancillary businesses like packaging or labeling companies?
Follow along to see our list of five cannabis companies you should be keeping your eye on!
GrowGeneration Corp. (GRWG)
GrowGeneration Corp provides hydroponics, equipment, and organic greenhouse supplies to cannabis growers. With locations in over seven states, GrowGeneration is one of the leading suppliers in the U.S. As of 2022, they've been doing well, with revenue growing by nearly 50% in 2017.
The company is expanding rapidly, with plans to open new stores in California, Nevada, and Colorado. The company is positioning itself to capture a larger share of the growing U.S. cannabis market.
Village Farms International (NASDAQ: VFF)
Village Farms International is a Canadian company that grows and sells fresh produce. The company recently entered the cannabis market by partnering with Emerald Health Therapeutics to create a joint venture called Pure Sunfarms. This venture is focused on producing high-quality, low-cost cannabis in Canada. So far, Village Farms International has been doing well, with sales growing by nearly 70% in 2018.
Village Farms International is focused on two main growth strategies: expanding its footprint in the Canadian cannabis market and entering the U.S. cannabis market. In terms of increasing its footprint in the Canadian cannabis market, the company is looking to open new stores in all central provinces, including Ontario, Quebec, and British Columbia.
AdvisorShares Pure U.S. Cannabis ETF (MSOS)
The AdvisorShares Pure U.S. Cannabis ETF is one of the newest additions to the cannabis market. The fund focuses on investments in U.S.-based cannabis companies in various areas of the industry, including growers, processors, manufacturers, and distributors. So far, the fund has been doing well, with a return of nearly 8% since it launched in October 2018.
Amplify Seymour Cannabis ETF (CNBS)
The Amplify Seymour Cannabis ETF is another new fund with a focus on the marijuana industry. Unlike AdvisorShares, CNBS invests in both U.S. and international companies. The fund also has a broader focus, investing in ancillary cannabis businesses like security or technology companies. This fund has also been doing well, with a similar return of around 8% since its establishment.
Spinnaker Cannabis Series ETF (THCX)
The Spinnaker Cannabis Series ETF invests in both U.S. and international companies. This fund has a more focused approach, investing only in companies involved in the production and distribution of cannabis products. The fund has a mix of large and small companies, and so far, it has been doing well, with a return of nearly 13% since its launching.
The management team plans to expand by increasing its investment in the cannabis industry. The team is also planning to add more funds to its portfolio, including a fund that focuses on the Canadian market.
Several companies are positioned to benefit from the growth of the cannabis industry, and you can too! However, knowing a company's competitive position and anticipated growth strategy is vital to your success. It's essential to do your due diligence in researching each and every company you seek to invest in, as well as the industry as a whole.
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