Ever since the bubble burst on marijuana stocks, the green sector has witnessed plenty of red. To add cruelty to this malaise, the novel coronavirus came along, sending the market deeper into the doldrums. Plus, with unprecedented governmental responses leading to quarantines and stay-at-home orders, cannabis retail sales took a hit — and not the good kind…
Nevertheless, the very pandemic that has caused so much turmoil may end up giving marijuana stocks a longer-term lifeline. That’s because in many ways, medical or recreational marijuana, along with cannabidiol (CBD) — which is basically cannabis without the psychoactive compound tetrahydrocannabinol (THC) — offer a critical solution to our new normal.
And what is the underlying problem in our present paradigm? In a word, stress. According to Bloomberg Businessweek, China’s divorce rate spiked once the nation emerged out of quarantine. As spouses found themselves kicked out of their workplace and forced to live together 24/7, they realized how much they annoyed each other.
Additionally and worryingly, domestic violence also surged in China. Essentially, it was a warning to what Americans could expect should they suffer as badly as the Chinese. Sure enough, married couples back home began fighting as they began seeing their partner in a new light — as in, all the time. To cope with this stress without divorcing, couples can elect a green new deal, which bodes well for marijuana stocks.
But it’s not just marital issues that’s stressing out America. From economic anxieties to social concerns, we collectively are a ball of worries about to explode. While I don’t do weed, I have friends that do. And they tell me that cannabis is a great relaxation platform. Hence, investors may want to consider these marijuana stocks to buy:
- Turning Point Brands (NYSE:TPB)
- 1933 Industries (OTCMKTS:TGIFF)
- KushCo Holdings (OTCMKTS:KSHB)
- Planet 13 (OTCMKTS:PLNHF)
- Charlotte’s Web (OTCMKTS:CWBHF)
- Village Farms International (NASDAQ:VFF)
- Trulieve Cannabis Corp (OTCMKTS:TCNNF)
- Amyris Inc (NASDAQ:AMRS)
- Harvest Health & Recreation (OTCMKTS:HRVSF)
As you might notice above, these are lesser-known names and that’s the point. While you can go with established leaders like Canopy Growth (NYSE:CGC) or Cronos Group (NASDAQ:CRON), smaller marijuana stocks give you a bigger bang for your buck. Just be aware that they’re far riskier than already volatile weed plays. Still, if you can stomach it, these companies could make your heart race in a good way.
Turning Point Brands (TPB)
With a market capitalization of over $570 million, Turning Point Brands isn’t exactly the smallest of small-cap marijuana stocks. Nevertheless, it tends to be overshadowed relative to other cannabis-related investments. Mostly, that’s because TPB stock is levered primarily to traditional tobacco-based products.
Now, I believe this has an advantage over pure marijuana stocks. During the quarantines — and we’re getting another round of soft voluntary quarantines in some hard-hit states — several vices shot up in demand, particularly alcohol consumption. It wouldn’t be a stretch to assume that people turned to tobacco to take an edge off, thus improving the case for TPB stock.
However, Turning Point also has the Nu-X CBD brand under its belt. Featuring a variety of hemp-based CBD tinctures, edibles and disposable vaporizer pens, Nu-X should provide a greater lift to Turning Point’s bottom line, especially if circumstances worsen.
1933 Industries (TGIFF)
One of the toughest barriers to success for marijuana stocks is massive competition. Over-leveraging yourself to any particular brand or business model could either be a genius move or a disastrous one. To mitigate some of the risks, 1933 Industries adopted a vertically integrated approach, featuring multiple compelling brands under its corporate umbrella.
Mainly, TGIFF stock has been fueled by the underlying company’s acquisition of Alternative Medicine Association, a “licensed medical and adult-use cannabis cultivation and extraction subsidiary that produces its own AMA branded line of unique cannabis-based products and manufactures third-party brands.”
But what really draws me to TGIFF stock is 1933 Industries’ PLUGplay brand of cannabis vaporizers. Utilizing an ultra-thin and subtle frame, the PLUG offers users a satisfying hit while facilitating a long battery life. Furthermore, its odorless profile allows users maximum discretion.
However, before you dive into TGIFF, do note that this is one of the riskiest marijuana stocks. Currently, it’s trading for only a few pennies a pop.
KushCo Holdings (KSHB)
According to the company’s website, KushCo Holdings’ Kush Supply Co. is “the nation’s largest, most respected and premier provider of vaporizer products, packaging, supplies, and accessories.” Better yet, Kush Supply claims to focus on products manufactured within the U.S.
If so, KSHB stock could be a winner in the current state of geopolitical affairs. As you know, prior to the pandemic, the U.S. and China was making progress in ending their trade war. Since then, relations are back to Cold War levels of ugliness. And that could impact the vaping industry, where most of the products are … you guessed it, made in China.
Potentially, this gives a leg up for KSHB stock if tensions worsen to the point where China-based supply chains are disrupted. But even if they aren’t, KushCo is in an enviable position. As a “vice” brand, demand should move higher as people seek a coping mechanism.
Planet 13 (PLNHF)
Out of the riskiest marijuana stocks, Planet 13 may be the most compelling. Based on a report from TechCrunch.com, “Planet 13 is located blocks off the Las Vegas Strip and holds the title as the world’s largest cannabis dispensary.” That alone is enough to convince some speculators to consider a wager on PLNHF stock.
However, the 115,000-square-foot facility provides multiple options that while may not appeal to the whole family, will certainly appeal to consenting and curious adults. For instance, Planet 13 features…
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