The marijuana industry is growing like a weed, and both Wall Street and the investment community have taken notice.
According to Wall Street, the global pot industry has a shot at between $50 billion and $75 billion in annual sales by the end of the next decade. This would pace the green rush on par with global soda sales, to add some context. With so many revenue dollars rushing into the industry, the big question left to be answered is, where will they go…
For the most part, Wall Street and investors have focused their attention on the 10 largest cannabis growers in Canada, as well as the vertically integrated, multistate cannabis dispensary business model in the United States. It’s pretty easy to be excited when a grower is on track for perhaps 700,000 kilos of peak production, or a company could soon have 123 retail dispensaries open across 16 states.
But the fact of the matter is that there’s an entire world of pot stocks flying below the mainstream radar. And while many of these marijuana stocks are speculative, a few stand out as particularly intriguing. If you have a high tolerance for investing risk and volatility, as well as understand that this is an industry that requires patience as it matures, then these three speculative pot stocks could be worth buying.
Arguably, the most intriguing speculative marijuana stock is small-cap Aleafia Health(NASDAQOTH:ALEAF), which is probably an unknown for most cannabis investors.
Nearly three weeks ago, Aleafia completed its all-stock acquisition of Emblem, creating a considerably larger network of health clinics throughout Canada, but more importantly bringing a lot of future cannabis production under one umbrella.
The combination of Aleafia Health and Emblem now has 40 branded clinical health centers that have treated approximately 60,000 patients to date in Canada. Since customer loyalty is tough to come by in the early stages of the marijuana industry’s maturation process, operating 40 health clinics provides Aleafia with an opportunity to supply these patients with in-house cannabis products. That should help improve loyalty, as well as lift its operating margins since medical pot patients are far more likely than recreational users to…
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