Stability is something that is difficult to come by in the cannabis industry. With marijuana stocks shooting up and down on quite a regular basis, it seems as though it is difficult to predict the direction of the industry at times. But, there is still a high amount of potential with marijuana stocks. Finding potential in a given pot stock can be easy if you have the right tools at hand. These tools include research and a willingness to look past speculation. Although trading off of speculation can be a useful tool, many cannabis investors are looking at the industry for the long term.
While short term volatility may skew how some look at marijuana stocks, projections for the next ten years continue to remain high. Depending on where you look, projections for sales in the next decade land anywhere from $50 to $100 billion. Of course, these may be generous, but even if we were to hit half of that, it would be quite a substantial amount of growth. There is undoubtedly potential in the cannabis market for either the short or the long term. The real issue we are working on solving now is finding stability in the industry. As traders become more comfortable trading in a coronavirus stricken world, we may begin to see a stabilization of cannabis stock prices. For now, these leading cannabis stocks are looking like interesting potential buys.
Automation is the Future for this Marijuana Stock
Akerna Corp. (KERN Stock Report) is not talked about nearly as much as the other marijuana stocks, despite its potential. For those who don’t know, Akerna operates as a provider of technology services to the cannabis industry. The company states that it provides tech services for seed-to-sale which means that it has access to the entire supply chain. In addition, the company operates several platforms that greatly helped the cannabis industry during the coronavirus. One of these platforms, known as MJ Platform, has helped to increase capacity for delivery and pick up services as well as fulfillment.
With pick up now being the preferred method for consumers to get their cannabis, this type of software is extremely necessary. After its IPO in July of 2019, the company quickly hit a high of over $49 before falling back to the $10 mark. In the past three weeks, Akerna has been able to rally, shooting up by more than 70% in only a short period of time. With digital being the way of the future, it looks like Akerna is a very interesting marijuana stock to watch.
Marijuana Stock To Watch: A Health and Wellness Based Company
Aleafia Health Inc. (ALEAF Stock Report) is a Canadian based cannabis company that works in the health and wellness side of the cannabis industry. Within this field, Aleafia operates medical clinics, cannabis production facilities, and more. Within Canada, Aleafia owns three very large facilities that are all used to produce marijuana. With the large quantity of cannabis that it produces, the company can then make a wide array of products including tinctures, oils, sprays, and more. These extract products tend to have much higher margins than traditional cannabis, which is a solid benefit to the company’s profits.
One of its key principles has been innovation since the company began. Aleafia has managed to continue producing new and groundbreaking products for sale in the cannabis industry. This is one of the reasons that the company remains a solid long term marijuana stock to watch. Moving forward, it will be important to see how the coronavirus affects Aleafia’s financials. With so many fluctuations in pricing occurring from this pandemic, the hopes are that Aleafia can find more stability in the near future.