Will Next Month Bring The Bulls for These Two Leading Pot Stocks to Watch?
In the cannabis industry, the bulls are always looking for the next marijuana stock to watch. This can be a difficult task at times, as finding the right pot stock is different for every investor. But, there are some common markers that we can look for in any given marijuana stock. The first of these is profitability. Now, this is a double-edged sword because a lot of leading pot stocks to watch, have shown potential, but not profitability. If we consider the massive amount of capital that goes into building a cannabis grow operation, lacking profitability can begin to make sense for a period of time.
Investors can look at how much a company is generating in losses, and whether or not that number is declining. In addition to this, investors should always consider what a marijuana stock is doing to stay competitive. The cannabis industry is changing very quickly, and cannabis stocks need to adapt to remain at the top. Many large marijuana stocks to watch have put out detailed plans for the future. With this information, we can begin to make a decision as to which marijuana stocks are worth watching, and which are not.
An Interesting Cannabis Grower Pot Stock
Village Farms International Inc. (VFF Stock Report) is one of the leading Canadian growers of cannabis. VFF stock has managed to gain a lot of traction due to the companies business model. While many pure-play pot stocks entered the market with little experience in agriculture, Village Farms is different. The company began as a large scale vegetable producer, working on putting out more vegetables per square foot than many other competitors. After discovering that the margins could be much higher growing cannabis, the company moved into the industry. Since that time, it has become one of the most efficient growers of marijuana in Canada.
In addition, VFF stock has managed to remain less volatile than many other major pot stocks. In a joint venture titled Pure Sunfarms, the company recently set out to produce cannabis with even greater efficiency. Currently, VFF stock has a market cap in the mid $300 million areas. This makes it a mid-sized pot stock to watch. But with its growth prospects and efficiency levels, the company remains a major candidate for potential future upward momentum.
A Very Large Marijuana Stock to Watch
Aphria Inc. (APHA Stock Report) is a cannabis stock that has garnered a lot of attention recently. Recently, analysts upgraded APHA stock to a target of around $6. This represents a more than 20% shift from its current levels in the third week of July. In its most recent fiscal quarter, ending on May 31st, analysts expect the company to post around doubles in sales. These numbers won’t be officially released for some time, but there seems to be a lot of strong sentiment for it being positive. Although APHA stock has continued to report losses in most of its previous quarters, investors have stated that they expect it to generate high cash flow by next year.
All of this leads up to APHA stock being considered a major pot stock to watch. But, we can’t forget that APHA stock is also one of the most volatile in the industry. Due to its sheer size, Aphria often gets the brunt of volatility when news hits the cannabis industry. This is not to say that fluctuations are bad, but rather that investors should simply keep an eye on the company.