When everything is dropping, it’s time to buy, and today I loaded up on pot stocks. We are at the beginning of a massive bull run for the stocks in this industry. The past two years have been tough for marijuana stocks. They are beat up and cheap. Investors have feared pot stocks in the past, but now, something is different. As federal legalization gets closer and closer, pot companies are beginning to make aggressive moves to position their self. These are my top 5 stocks to buy in this industry ranked.
5. Planet 13 (PLNHF)
I have Planet 13 ranked at number 5 because of the potential unseen risks that lie ahead. Let’s start with the good. This is starting to establish itself as a tourist hot spot. I have heard only great things about this company. They really focus on providing a high quality customer experience. Amazon, Chick-fi-la, and Disney are great examples of how focusing on customer experience can grow your business exponentially. I still feel like there needs to be some upgrades to provide a even better customer experience, which will turn this into the place to be Friday and Saturday nights. They are already working on adding restaurants, hopefully they are cannabis infused kitchens, which will really help in getting people in the building. But they need to make it smoker friendly, which the law is holding them back currently. This will make it the stoner hub, and increase profits as people stay longer. Now people are getting their bud and leaving. If they can stay, have their bud rolled in front of them by a “professional roller” , it would just add to the experience. Pay the rollers cheap hourly, and encourage tips. Bud rollers will become the new bar tenders. They also plan to expand across the nation, and target big cities. But there are a couple risks which some investors may not see. Cannabis prices will drop as we see an increase in competition in the markets. Planet 13 is already making a slim margin, so as prices drop, they can’t. The bud at Planet 13 is already over priced, but to be fair, you get what you pay for. But when you can go down the road to other competitors and get the same bud at 1/2 to 1/4 the price, consumers may turn to alternative options. Yes the rich will still pay the price for weed, and most tourists have money, so in the end it may not be an issue. Also, will the hype die down when weed becomes legal? It may be a hot tourist spot now since consumers can’t buy in their own state. The awe of buying cannabis from a dispensary , especially one like Planet 13, encourages them to pay top dollar since they are getting dispensary weed. When the hype dies down, and consumers are used to paying half the price, will they still show up at Planet 13? Only time will tell, but there is definitely massive potential for Planet 13 in the years ahead.
4. cbdMD inc (YCBD)
The CBD could be huge in the future, as CBD will be able to reach a larger audience. There are more applications for CBD as well. People are not seeing the potential CBD could have. They make CBD gummies, tinctures, topical, bath bomb, vape oils, and PET products. Yes, you can give CBD to pets, and the results are great. From personally using the products for my aging dog, the results were great. His joints really benefitted from using CBD just a couple times. I don’t remember the brand, but it was most likely this one, as they are one of the leading CBD brands in America. Also, revenues are growing quarter over quarter, and the company is thriving. With a wider audience, CBD could explode in the next 10 years, and this will be one of the top stocks to own in this industry.
3. Sundial Growers (SNDL)
This stock is not a long term pick, but will explode when the industry explodes, SNDL is the perfect hype meter. Retail investors love buying cheap shares. It is funny to watch them claim this is “undervalued” and “cheap” when compared to the rest of the stocks on the market, as number one on this list is half the market cap of SNDL currently. A lot don’t understand market cap, which I didn’t understand either when I was still new to trading. If you don’t know what market cap is, please look into it as it will boost your trading performance and help you get a better understanding of the value of a company. But as retail watches pot stocks boom, they will flock to SNDL because of its price. This will inflate this price astronomically high. This is a great stock to day trade as well, as there will be 20-30% scalps almost daily. Use SNDL as a hype meter on this boom, and may be able to use the extra cash to become a formidable LT player in the industry.
2. urban-gro Inc (UGRO)
This is number two on my list because of the insane returns you could see from this stock. It is a micro float, under 5 million shares available. Market cap is only 72.52 million. They make grow rooms for cannabis businesses, and even indoor farming. They also maintain the rooms. They also create a product that prevents the smell of weed from leaving the property. If you didn’t know, to be able to work with weed, one of the rules is the smell can not lurk away from your property. Businesses and future businesses will have to use theses systems by law. UGRO can be compared to IIPR in a way. IIPR is at 5.3 billion market cap. We are looking at 72x growth potential if it can get to where IIPR is today. With expected growth in the industry, IIPR and UGRO are both great investments. UGRO could be $100 plus a couple weeks from now, its currently at $8. Think I am bs’ing? UGRO was already at $162 two weeks ago on a pump. Don’t miss out on this one!
1. Hexo Corp (HEXO)
Where do I start with this one? Their amazing strategy to enter US markets, or the fact they are dominating the entire cannabis-infused beverage market, which has massive potential by itself., or the fact that they are currently extremely undervalued when compared to others in the industry? This stock is my number 1 pick for INVESTORS. Your going to want to hold this one for years, and retire early. Hexo is that small company that’s going to boom in US markets thru their partnership deals. Yes they are not going to get 100% of the revenues from these products, but they are going to be able to get more of the market using brands that US citizens are familiar with. Hexo doubters will one day be drinking, eating, or smoking Hexo product and not even know it. You may even now, since they are already making moves in the US market. You know how those small companies on Shark Tank sacrifice equity of their company to obtain a shark, since the shark will be able to generate more revenue for the company and make their part of the pie 10x more valuable than if they did it themselves? Well HEXO has already partnered with one “shark” and they are looking for more, possibly Coke or Mondelez International, the company that makes Oreo’s. Not only will the partnerships increase revenues, but it will get their products distributed across the US faster, establishing their brand early. I go into more detail in previous articles if you are interested in learning more, but HEXO has more than a majority of my portfolio right now and I probably will never sell. I bought VUZI at 3$ and am going to hold it LT, already $20, but I am more bullish on HEXO than I was when I loaded up on VUZI at three. Both long term gems, but HEXO could be insane.
Don’t miss out on the massive run we are about to see. Add these stocks to your watchlist and watch them grow over the next couple years. Keep up to date with the next big move in the market by following below!
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