CRLBF - Can These Marijuana Stocks Grow to Market Expectations?
The new year has already brought in some exciting opportunities for the cannabis industry. We all know that 2019 was less than stellar for anyone investing in marijuana stocks. But, now that we have turned the page, can the market begin to inch its way back to success? With any new market, volatility remains constant for a period of time. This period allows investors to become comfortable with price action and stability to a point where expectations can begin to be met. With pot stocks, the market is still in its early stages as the industry continues to expand.
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Right now there are two main issues that could hinder growth in this new year. The first is supply concerns in Canada. Companies there have worked tirelessly to up production to new highs. But, this comes at a cost. The majority of Canadian pure-play pot stocks have yet to see large profits if any at all. Second, we have witnessed high tax rates drive consumers to source other nonlegal options looking for cannabis Untied States.
But, here we are in 2020, a new decade for investors to take advantage of pot stocks. With all the negative things that have happened in the cannabis industry, there are some positives to consider when looking for marijuana stocks to buy. In Canada, we are seeing the growth of the derivatives exceed expectations in the consumer market. In the case of the U.S., more states are getting involved in the cannabis industry than ever before. As you can see, this is undoubtedly a two-sided coin. With that in mind, these two pot stocks below have high expectations from market research and investors alike.
A Little Known Pot Stock With Big Potential
Flowr Corp. (FLWPF Stock Report) (FLWR) is not nearly as well known as some of the larger pot stocks in the cannabis industry. This is because Flowr Corp. works in the ultra-premium end of the market. By producing the highest grade cannabis, Flowr Corp. is able to set itself aside from the rest of the marijuana producers. The result of this is sales shooting from $10 million back in 2019, all the way to a projected $80 million by the end of this year.
The expectation here comes from a new facility based out of Kelowna, CA. This new facility will help to push production to new heights for the company. Investors should watch for the difference in demand between ultra-premium cannabis and the average grade product. This difference will help to illustrate just how well Flowr Corp. could do throughout the rest of the year. For now, it looks like this pot stock is well-positioned for the future of the industry.
A Canadian Pot Stock With a Foothold in the U.S.
Cresco Labs (CRLBF Stock Report) (CL Stock Report) is a multi-state operator traded on the Canadian stock exchange. Although its traded on that exchange, it’s headquarters are located in Chicago, Illinois; which recently legalized marijuana. With this legislation, Cresco Labs has put a majority of its focus into growing its presence in Illinois, which is currently an untapped market.
What’s really interesting is Cresco Labs proposed acquisition of Origin House. If this deal goes through, it would give Cresco unprecedented access to the Californian cannabis market. With this access, the company would be able to put its cannabis products in up to 500 dispensaries throughout the state. This remains a major factor to Cresco Labs projected growth in 2020.
With all things considered, these two pot stocks present unique opportunities for investors. Focusing on innovation and the future of a booming industry helps investors to stay ahead of the competition. Moving forward, 2020 could prove to be a game-changer for marijuana stocks and the cannabis industry.