Pure-play pot stocks can be tricky for investors across the board. The companies have several factors that can make them interesting and at times, difficult investments. For one, their profitability depends greatly on the amount of cannabis that they are producing. Because of this, it can be difficult to predict what kind of price action we can see for a given pot stock. But, pure-play marijuana stocks, which simply means companies whose sole purpose is to grow marijuana, reside wholly at the top of the market.
These companies are the backbone of the cannabis industry, and for that reason, they could get a lot of the overall market growth in the next few years. Some issues remain however such as supply worries in Canada and the growing black market, but these are being worked out more and more each day. Legal cannabis is projected to reach anywhere from $50 to $70 billion within the next decade, which means that there is a lot of growth left to see out. With this in mind, these are two pure-play pot stocks that have not gained as much attention as they should.
Marijuana Stock To Watch A Vertically Integrated Retailer
Planet 13 Holdings (PLNHF Stock Report) is not nearly as popular as many other retailers of cannabis, but its size should not dissuade investors from taking a closer look. The company has the largest dispensary in the U.S. which is located in Las Vegas. The store, which is appropriately named the SuperStore is as large as 16,200 square feet. But, the company states that when all is done, the entire location will span as much as 112,000 square feet. This massive location will include several restaurants, coffee shops, and a completely vertically integrated growing and testing facility for cannabis.
The company is a very interesting one because it represents a new breed of pot stock. Planet 13 Holdings is doing something vastly different in the industry and its difference is exactly what makes it competitive. The company also has plans to open a new 40,000 square foot facility in Santa Ana, CA which should take it even further into the future. Although it is not a traditional pure-play pot stock, the company definitely continues to provide investors which an interesting alternative.
A Non Traditional Pure Play Pot Stock
Charlotte’s Web Holdings (CWBHF Stock Report) is a pure-play pot stock in the sense that a majority of its profits come from the production and sale of cannabinoids. With that said, it is a producer of various CBD infused products that it sells for medicinal use. The cannabis company is focused on boosting its retail presence as much as it can. Because of this, it is in as many as 6,000 stores at the current time. Charlotte’s Web also saw a large 14% gain during the trading day on the last fiscal day of February.
Despite the majority of the market showing losses, Charlotte’s Web was able to find some foreword momentum. This does come after the company did see around 30% of its value lost earlier in the month. The recent gain follows the announcement of an investment in a new product line. This will help it to gain access to several interesting areas of the cannabis consumables market. With this going for it, Charlotte’s Web Holdings is another interesting pot stock that is striving for a bright future.