3 Cannabis Stocks That Can Cash In on New York’s Legal Pot Market

The big news in the cannabis industry this year is that New York has legalized marijuana for recreational use, making it the 15th state to do so. It likely won’t be until sometime next year that recreational sales commence, but for investors, it’s not too early to start thinking about which companies will capitalize on what’s sure to be the next hot market for the industry…

There will likely be a surge in companies looking to make moves in New York in the coming months. However, three stocks that already have a presence in the state and that could be among the big winners from this news are Cresco Labs (OTC:CRLBF)Green Thumb Industries (OTC:GTBIF), and Columbia Care (OTC:CCHWF). And now may be a great time to invest in them.

1. Cresco Labs

Multistate cannabis producer Cresco Labs is in great shape to take advantage of the New York market. The company has four Sunnyside retail locations already set up and operating there. But investors should look for more moves from Cresco. In a recent press release, CEO Charlie Bachtell said that “we look forward to deepening our position in the state ahead of adult-use sales commencing.”

Cresco Labs is an appealing investment, because unlike some larger multistate operators, the company isn’t overly aggressive in its expansion. In six of the nine markets that the company is in, their annualized run rates are at more than $1 billion. By picking its spots carefully, Cresco can not only generate strong sales numbers, but record a healthy bottom line while doing so. In 2020, its sales of $476.3 million grew 271% year over year. And its adjusted EBITDA of $116 million represented more than 24% of its top line.

Investors should watch for Cresco Labs as it may try to secure some key positions in the state before recreational sales begin. The opportunity for that, coupled with strong financials, makes this a solid pot stock to add to your portfolio.

2. Green Thumb

In addition to New York, Green Thumb has a presence in neighboring New Jersey, which legalized marijuana earlier this year. It has two stores in the Garden State, and in New York, it three locations under the FP Wellness brand (a fourth is on the way), including one in Manhattan. For more aggressive investors, Green Thumb is an attractive option as on March 31 it opened its 56th Rise retail location in the country. That’s one-third more since launching its 42nd retail location a year ago.

Like Cresco Labs, Green Thumb has also been…

Continue reading at THE MOTLEY FOOL