Many investors are making a mistake when it comes to cannabis stocks. They’re focusing on well-known Canadian companies that trade on the Nasdaq or New York Stock Exchange. But the real opportunities to make huge returns are with the U.S.-based stocks that can only be bought over-the-counter right now…
If you use the Robinhood trading platform, you can’t buy these stocks. However, it’s worth looking for an alternate way just to buy shares of these fast-growing cannabis companies. Here are three pot stocks that could make you rich.
Cresco Labs
Cresco Labs (OTC:CRLBF) ranks as the biggest of the three. The multistate cannabis operator’s market cap currently stands at a little under $3 billion. I think that Cresco still has plenty of growth potential.
The company’s sales are in the same ballpark as those of Green Thumb Industries and Trulieve and aren’t too far behind Curaleaf. However, Cresco is much more attractively valued than any of these rivals.
Granted, Cresco generates a lot more of its revenue from wholesale than its peers do. That’s understandable considering the company is the leading cannabis wholesaler in the country. If you look at other industries, though, you’ll find that the profit margins for wholesale tend to be greater than retail over the long term. I suspect that trend will prove true in the cannabis industry as well.
Cresco has multiple paths for growth. The states where it currently operates have booming markets. The company is also expanding into Florida’s medical cannabis market with its pending acquisition of Bluma Wellness. Cresco is well-positioned to deliver exceptional returns for investors over the next few years.
Ayr Wellness
At the beginning of 2020, Ayr Wellness (OTC:AYRW.F) had cannabis operations in two states — Massachusetts and Nevada. Today, it’s poised to be in seven states once pending acquisitions close. The company will also rank as one of the five biggest multistate cannabis operators in the U.S.
Ayr’s new markets are exactly where you’d want the company to be to deliver strong growth. Florida, Ohio, and Pennsylvania have robust medical cannabis markets. Arizona opened its legal recreational marijuana market earlier this year. New Jersey recently passed legislation to legalize adult-use pot.
The company reported…
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