There’s one marijuana stock that many investors have overlooked but that has quietly delivered fantastic returns…
Origin House (NASDAQOTH:ORHOF) soared nearly 60% in 2018 and it’s up around 40% so far this year. I think the stock still has plenty of room to run ever after these impressive gains. Here’s why Origin House is a hot marijuana stock to buy in March.
1. California’s going to crank up
Origin House is technically a Canadian company, since it’s based in Ottawa. But the company’s primary operations are in California, where Origin House is the leading distributor of cannabis products. That’s important, because California happens to have the largest marijuana market in the world.
Although California’s legal recreational marijuana market opened for business in January 2018, it got off to a bumpy start. Tax rates were too high. Red tape hindered progress. Fewer dispensaries and retail locations opened than should have to adequately support the state’s cannabis market.
California politicians know they’ve got a big problem. Gov. Gavin Newsom wants to beef up enforcement to go after the state’s black market for pot. California legislators are considering reducing cannabis excise taxes and suspending the cultivation tax for three years.
My view is that there’s nowhere to go but up after California’s dismal handling of the recreational marijuana market launch. I think the state will end up making some needed changes because it’s losing out on tax revenue. As it does, there will be more legal cannabis growers and more dispensaries licensed. And that will enable Origin House’s sales to rapidly increase.
2. A sizable northern opportunity
California is rightly the top priority for Origin House. However, the company has a sizable opportunity in its home country of Canada.
While Origin House is a distributor of cannabis products, it also has steadily rolled out more of its own cannabis brands. For now, those brands are sold only in California. That’s likely to change in the not-too-distant future, though, thanks to the company’s acquisition of 180 Smoke.
180 Smoke operates 23 retail vape stores in Canada with more on the way. Origin House thinks that 180 Smoke’s locations could be a great springboard for the retail cannabis market. 180 Smoke has already obtained two permits in to open retail cannabis stores in Alberta. The acquisition should…
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