Can These Two Pot Stocks to Watch See Gains Throughout 2020?
As 2020 passes the halfway point, many interesting marijuana stocks have continued to show face. Despite some days of losses, in the past few months, we have mostly seen gains amongst the most popular marijuana stocks to watch. Because not all pot stocks are created equally, it is up to the investor and the cannabis industry to weed out the ones that lack value. With that in mind, we must also consider the time frame of the investment. Some cannabis stocks are better suited to short term investments while others may see real gains in the long term. In the past three months, most of the leading pot stocks have pushed gains in the 80-150% range.
This is of course not across the board, but the trends to show solid bullish sentiment. What is disconcerting is that we cannot predict both the short or long term future. This is due to the unpredictability of both marijuana stocks, and the factors that are wholly affecting the cannabis industry. Using data that comes out daily, we can make assessments on which areas of the market could see larger pushes than others. Finding the area of the cannabis industry that could be COVID-proof, may just be the right way to go. For that reason, these two marijuana stocks continue to look interesting to prospective traders.
A Canadian Marijuana Stock With Potential For A Bright Future
Valens Corp. (VLNCF Stock Report) is one of the most interesting Canadian marijuana stocks on the market for several reasons. For one, VLNCF stock has shot up by more than 40% since mid-March. While this gain may not seem staggering, it is quite good when VLNCF stock is compared to other cannabis market players. The pot stock operates as an extraction service provider which basically means it extracts cannabis via contracts. One of the most promising aspects of the future of VLNCF stock is the fact that Canada only legalized extractions at the beginning of this year.
This means that there is a large amount of untapped potential waiting to be seen. In addition, the company has managed to be more stable than most due to the fact that it works off of long term contracts. In its most recent first quarter, the leading cannabis stock posted around CA$32 million in sales. This is a very solid number, especially given that extracts have much higher margins than traditional cannabis flowers. This first quarter number was also the third consecutive quarter of Valens posting profits which makes it even more enticing. For this reason, the company remains a major marijuana stock to watch.
A U.S. MSO Marijuana Stock With Year-End Potential
Cresco Labs Inc. (CRLBF Stock Report) has a great amount of year-end potential given that 2020 is an election year in the U.S. As a multi-state operator, CRLBF stock posts the majority of its gains when it is able to move into more markets in the U.S. If several states choose to legalize cannabis at the end of this year, it would undoubtedly give CRLBF stock a major push in the right direction. The company recently completed its all-stock acquisition of Origin House, which gives it unprecedented access to the U.S. cannabis industry.
With 12 retail licenses not even being used yet, CRLBF stock has a great amount of potential that could be tapped into in the next few years. With this Origin House acquisition, Cresco has the ability to sell its products in as many as 575 dispensaries around California. This type of distribution is not unprecedented, but it is a major step forward for the company. Because of that, Cresco continues to be considered a marijuana stock to watch.