What These Two Pure Play Pot Stocks are Doing That Separates Them From the Rest
Pure play marijuana stocks seem to be the most popular choice amongst investors. Although they are known to be quite volatile, these pot stocks do not disappoint when it comes to opportunity. One thing to consider when looking at pure-play pot stocks is what their business models are and what makes them different. On one hand, we have the extremely large pot stocks that we all know about. These are major cannabis growers and are the most forward-facing marijuana stocks in the industry. Now, these cannabis stocks can be good investments, but due to their size, they often receive the brunt of the overall volatility.
On the other hand, we have more alternative pure play pot stocks. These companies do grow cannabis, but they differ in either their methods of growing, the type of product that they grow, or how they run their business overall. Often times, the upward potential can be much higher than larger marijuana stocks because of their size. Due to them often being smaller, they have a much greater chance at growing to higher highs than major pot stocks that are already at high price points. With that in mind, here are two interesting pot stocks to watch.
An Interesting Mid-Cap Grower Marijuana Stock
Village Farms International Inc. (NASDAQ:VFF) is one of the most well known mid-cap marijuana growers in the industry. For quite some time, VFF stock has shown a great deal of forward momentum. Although the company did see some decline in VFF stock’s value earlier in the year, since that time it has been able to bounce back and then some. Since March, VFF stock has shot up by as much as 180% which is quite a large amount. Other marijuana stocks have seen similar gains, but it remains that 180% is a large amount to shoot up by.
In addition, VFF stock has shown profitability in the past five quarters that it has reported. With that, it remains a leading grower marijuana stock with more potential than most others. One thing to consider is what type of legalization efforts will occur for the company in the near future. As of now, it seems as though VFF stock is on the right track. But, there is no doubting that changing legal measures would be a big benefit to the company. With that in mind, Village Farms remains a leading marijuana stock to watch.
A Major Marijuana Grower Pot Stock to Watch
OrganiGram Holdings Inc. (NASDAQ:OGI) is one of the larger marijuana growers in the cannabis industry. Although OGI stock has remained quite volatile, it has also shown a lot of growth potential. OGI stock is not nearly as large as some of the giants like Canopy Growth Corp. (NYSE:CGC), but it is considered a big cannabis grower. The benefit for OrganiGram is that it already has a very large market reach in Canada, where cannabis is legal nationwide.
With this in mind, all OrganiGram needs to do is continue growing in the near future. Some believe that at the current price, OGI stock could be considered a value. But, with the price bouncing up since mid-March, investors may want to wait for it to become more of a value buy before investing. Regardless, OGI stock has benefitted from the company’s broad market in the cannabis industry. With that in mind, it remains one of the leading pot stocks to watch.