As the end of the week approaches, it’s time to take a look at a few interesting marijuana stocks to watch. Within the cannabis industry, there are several pot stocks that present interesting cases for investors to watch. In the current state of the market, it seems as though it is a difficult time to make a call as to whether or not a pot stock has value. Trading right now seems to be mostly based out of coronavirus-related fears. But, the coronavirus has helped to show that there are some things that we can look for as we move forward.
For one, finding a marijuana stock with an ample amount of free cash is a great place to start. With free cash, a cannabis company is more able to weather the current volatility storm that we are in. In addition, it is worth finding a company that has a lot of forward momentum and future thinking. With this, after the coronavirus has finished taking its toll on the industry, a cannabis stock will have a better chance of seeing large gains in the future.
But, during trading on Thursday the 9th of April, we saw many pot stocks climb by significant amounts. This could be a sign that people are beginning to rethink their fears about the future. It could also be a fluke short term gain. Only time will tell how the cannabis industry trades in the next few weeks. For now, it’s worth going over a few interesting pot stocks to see what could happen in the near future.
A Large MSO With Over $1 Billion in Market Cap
Green Thumb Industries Inc. (GTBIF Stock Report) is one of the largest MSOs in the industry. The company currently has a market cap of around $1.2 billion which is quite substantial for a pot stock, let alone a multi-state operator. Recently, it completed the acquisition of Integral Associates, a Nevada based cannabis company. With this, it should have a greater amount of access to one of the fastest-growing statewide markets in the country.
With so many MSOs showing potential, Green Thumb is one of a handful that sits at the top of the market. In addition, the company has quite a lot of free cash which is a great sign for the current level of volatility that we are seeing. In addition to this, if it is able to continue growing at its current rate, it could become the largest MSO pot stock in the industry.
The Largest REIT Marijuana Stock in the Cannabis Industry
Innovative Industrial Properties Inc. (IIPR Stock Report) is arguably the most popular REIT in the cannabis industry. It remains popular because of its consistent growth and long term stability. For those who don’t know, the company operates by purchasing real estate and then leasing it out to those who wish to grow or proceeds cannabis. As of its most recent report, the company has as many as 54 properties across 15 states in the U.S.
The company has also shown an average return on capital of around 13% which is very substantial. What makes the company even more interesting is its long term stability. The majority of its contracts last at least 10-15 years. This means that we should be able to continue seeing consistency in its balance sheet for the foreseeable future. For a more stable pot stock, investors should continue to keep a close eye on Innovative Industrial Properties.