VFF - Two Leading Marijuana Stocks With Interesting Business Models
Are These Two Marijuana Companies Pot Stocks to Watch?
Although there are a lot of choices when it comes to marijuana stocks, not all are made equally. Pot stocks differ in several key ways. The main way in which cannabis stocks are different is the market that they work out of. Some cannabis stocks are considered pure-play, which essentially means that they produce and sell marijuana flower. These companies are a good choice, but they can also be quite volatile. Another way that pot stocks differ is in their business models. Some companies have managed to avoid falling into big debt, while others are utilizing capital raising methods to do just that.
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Although profitability is profitability, debt is a big factor to consider when picking a marijuana stock to watch. Lastly, we have to think of what a cannabis stocks future will look like. While many pot stocks do have concrete plans laid out for the future, this is not the case across the board. As investors, it’s up to us to find out what a company is doing to stay competitive. With that in mind, here are two pot stocks to watch with interesting business models.
A Biotech Pot Stock To Watch
22nd Century Group Inc. (NYSE:XXII) may not be a well-known marijuana stock to watch. But, the company has made its mark in the cannabis industry. XXII stock is known for being an avid player in the tobacco industry, but it has ventured into cannabis in the past few years. Because it is a biotech company, XXII stock has benefitted from the businesses ability to work with cannabis. While similar pot stocks like GW Pharmaceuticals Inc. (NASDAQ:GWPH) and Insys Therapeutics Inc. (NYSE:INSY), operates in the biotech industry, they are very different from XXII stock.
The company has been working on producing cannabis with higher levels of certain cannabinoids. Although this is not new by any means, the public is showing greater demand for cannabis products with alternative cannabinoids. With that being said, XXII stock is still considered to be a smaller pot stock to watch due to its size. But, the company has several leading partnerships that could help it to improve in the near future. All things considered, XXII stock remains a leading marijuana stock to watch.
A Mid-Cap Cannabis Grower Pot Stock
Village Farms International Inc. (NASDAQ:VFF) is a mid cap grower of marijuana working out of Canada. Since mid-March, VFF stock has shot up by as much as 120%. This is quite a staggering gain, but gains like this have been seen across the cannabis industry in companies like Canopy Growth Corp. (NYSE:CGC) and more. With a market cap of around $290 million, VFF stock is by no means a small marijuana stock to watch. But, its business model makes it incredibly interesting.
As opposed to some other cannabis growers, Village Farms has been in the plant growing industry for several decades. Because of this, it has vast experience in growing different plants and vegetables. With this, it has been able to not only grow some of the highest quality cannabis in the industry, but it also has some of the best yields as well. Because of its business model, many investors view the company as a marijuana stock to buy, but that decision remains up to every individual investor. With this, VFF stock looks like a leading marijuana stock to watch.