ACRGF - Are These Marijuana Stocks Built For Long and Short Term Growth
With a massive stock selloff as a result of Coronavirus related issues, marijuana stock prices have dropped dramatically. In the past month, we have seen the stock market lose double-digit billions in value. But, like any good investor, we can use this to our advantage. Regardless of short term market volatility, the cannabis industry is projected to hit anywhere from $70 to $100 billion in sales within the next ten years. Because of this, small road bumps like the ones we are facing right now, are not wholly a cause for concern. There are several strategies to consider when it comes to investing in beaten-down pot stocks.
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The first strategy is one used by swing traders. Those who are watching and trading daily can look for small jumps in value to boost profits. This is a very short term method of trading and one that is used by many cannabis investors. On the other hand, long term trading means that investors can buy the dip, and then hold for long periods of time in the hopes that values will once again climb in the near future. Both of these strategies are completely valid, but it all comes down to the individual investor and what their goals are. Regardless, with these dips, we can begin to search for gaps where value can be found. This value can be identified for both long and short term pot stock traders.
An MSO Pot Stock With a Bright Future
Acreage Holdings (ACRGF Stock Report) (ACRG ) is a U.S. pot stock that is primed to see some substantial growth in the next few years. Currently, it is trading at around $4 which is interesting considering a potential buyout of the company from Canopy Growth. In addition, the company posted almost $45 million in revenues in its most recent 4th quarter. This number could show that the current pricing for Acreage may be lower than it’s value. But, it is also worth considering that this number only represents a small gain from its $42 million in its 3rd quarter sales.
Currently, the company has as many as 35 cannabis dispensaries around the country in 20 states. It has stated that this year, it plans to bring that number up to around 45, adding 10 dispensaries to its portfolio. The real interest, however, comes from the aforementioned potential buyout from Canopy Growth. If this occurs, it could help to give Acreage Holdings the access to capital that it needs. But for now, the company remains an interesting pot stock to watch for a more aggressive portfolio.
A Long Term Pot Stock to Watch
Scotts Miracle-Gro (SMG Stock Report) is not a pot stock in any traditional sense of the term. But, it has worked with its subsidiary, Hawthorne Gardening to become one. Hawthorne Gardening produces products used in the hydroponic growth method of producing cannabis. Because of this, it has seen tremendous growth over the last two years. Scotts Miracle-Gro is a long term potential buy because it is quite a steady company in its own right. This means that it has a relatively stable price movement which is something that many long term investors are looking for.
Its traditional business in lawn care is quite well documented which means that the company will not suffer as highly from large volatile swings as other large pot stocks do. The future of its growth in the cannabis market highly depends on demand seen from Hawthorne Gardening. Right now, it looks like there are little to no competitors in this area of the market. Because of this, Scotts Miracle-Gro is a very intriguing non-pot, pot stock to keep an eye on.