In an industry dominated by size, revenue & production quantity can be a marijuana stock‘s best friend. But, size is not always the best judge of which marijuana stock to buy. The cannabis industry does a great job of pushing the largest companies. But there are without a doubt, reasons both for and against each company. In the past 2 months, we have witnessed some major losses in the cannabis industry.
While the majority of these losses can be attributed to the coronavirus, the market itself is partly to blame. Investors have been trading recently based on fear rather than on a company’s true value. This skews a lot of the data and results in a large amount of market volatility overall.
Because of this, it is paramount to have access to as much information as possible. In this way, investors can avoid the pot stock hype. It is worth mentioning that it does not look like we will see lessened volatility any time soon. With this pandemic, we don’t know what will happen next month or even next week. Based on this uncertainty, we should continue to expect price fluctuations moving into the next few months.
Marijuana Stocks To Watch: OrganiGram Holdings
OrganiGram Holdings Inc. (OGI Stock Report) has been one of the most interesting cannabis stocks to watch for the last few weeks. The company saw less than stellar growth during its most recent second quarter, which doesn’t help its case.
But, it has managed to raise sales by almost $3 million as opposed to the previous quarter. This represents a 20% improvement in the data. Last year, the company looked like it was heading in a great direction. Canada had only just recently legalized adult-use cannabis, and things were looking good.
Very soon however, the company realized that it was producing too much cannabis. It had to shut down a large amount of its operations. But as a top producer of cannabis, the company is competing with some of the largest in the industry. This competition puts OrganiGram in a different tier of the list of marijuana stocks to watch. But will the latest surge in pot stocks continue to boost sentiment around OGI stock? On this flip side, will the hype fizzle as summer approaches?
Marijuana Stocks To Watch: Canopy Growth Corp.
Canopy Growth Corp. (CGC Stock Report) is one of the most well-known marijuana stocks in the industry. But, the company has had some issues that it still needs to resolve. The largest problem stems from a massive multi-billion dollar investment put into the company.
After this investment, Canopy decided to embark on a massive spending spree, as opposed to building out its current business. During that time, it saw its revenue decline by more than 10% while costs continued to go up.
The company, however, has worked to diversify its investments by moving into international markets. This has helped it to push around CA$20 million in international sales in a short period of time. This number is also more than ten times what it was doing internationally only a year prior.
Although the company does have a large number of inherent issues to deal with, it does look like it’s working to get back on track. Since the start of the second quarter, CGC stock has climbed 49% as of $20.92 highs this week. Does it make it onto your list of marijuana stocks to watch this summer?