The coronavirus has been the cause for a large part of the pot stock volatility we have seen in the past few weeks. With this volatility, we have seen cannabis stocks shoot down in value by as much as 40% at the high end. While this has been the case, the past three days ending on March 26th, have resulted in extremely bullish sentiment in the cannabis market. During trading on March 26th, we saw some leading marijuana stocks shoot up by more than 50% during the day. As you can see, there are quite a lot of fluctuations going on around the world markets right now.
But, several factors could help to push pot stocks in the right direction in the next few weeks. For one, Trump recently oversaw the agreement on a coronavirus spending bill go on in the federal government. This helped to give a greater sense of security than we have seen in the past month. This could also have been the cause of the large market growth over the past few days. But, it does not look like we are out of the waters yet. For now, there is still a great deal of uncertainty clouding the entire stock market.
For those who have invested in marijuana stocks for a while, they may be quite used to these large fluctuations. But, for less seasoned investors, now may be a time that would be best-used refining one’s trading strategy. Moving forward, these two alternative pot stocks look like great candidates for the near future of industry growth.
A Cannabis Retailer Pot Stock
Curaleaf Holdings (CURLF Stock Report) is one of the leading cannabis retailers working out of the U.S. The company posted gains of around 13% during the trading day on March 26th. While some of this can be attributed to the overall market gains from the day, the company also recently posted large revenue growth for the latest quarter. In addition, it did also post larger losses than the quarter prior, but it’s revenue also has risen by around double when compared to the same time last year.
The key to Curaleaf succeeding is in the legislation put in place by the federal government. As an MSO, the company is highly dependent on states allowing cannabis to be legalized for adult use. This means that with more states legalizing marijuana, there will be more opportunities for Curaleaf to grow. But, the company does remain quite profitable when compared to similar marijuana stocks. For this reason, it remains an intriguing pot stock to watch.
A Key Alternative Pot Stock
Innovative Industrial Properties (IIPR Stock Report) is a pot stock that gets a lot of attention throughout the industry. The company is a REIT which means that it purchases and then leases out facilities for those who wish to grow cannabis. During the trading day on March 26th, the company shot up by as much as 13%, ending the day on a high note. In the past week, it has risen by as much as 56% which is quite a substantial rise, even for a volatile pot stock. One of the reasons that so many investors like IIPR is its stability.
As a REIT, the company has contracts that last anywhere from 10-15 years. This means that profitability can be quite predictable. Because of this, more conservative investors tend to lean toward this interesting pot stock. The company does look like it has a ways to go before it can inch out of the current volatility levels, but things do look to be going to plan. So for more conservative investors, this may just be the right pot stock to watch.