Enthusiasm over cannabis stocks has gone through lots of ups and downs over the past few years. It’s safe to say that we’re currently in another upswing. Pot stocks are hot once again…
Shares of three cannabis companies, in particular, skyrocketed more than 40% last month with even greater year-to-date gains. What are these hot cannabis stocks — and should you buy them before it’s too late?
1. MedMen
MedMen Enterprises (NASDAQOTCBB:MMNFF) ranked as the best-performing cannabis stock in February with its shares more than tripling in value. So far this year, the retail cannabis stock is up over 250%.
This major move appears to be the result of a short squeeze that played out in a similar way as the Reddit-fueled rise of Sundial Growers (NASDAQ:SNDL). Both stocks spiked around the same time, and both experienced similar declines.
MedMen squeaked out quarter-over-quarter revenue growth in its second quarter, which ended on Dec. 26, 2020. However, it posted another big loss of $68.9 million.
My personal opinion is that it’s too late to ride the momentum for MedMen. I also think it’s too soon to view the stock as a great long-term pick. MedMen continues to lose money and isn’t on a clear path to profitability at this point.
2. RIV Capital
Shares of RIV Capital (OTC:CNPO.F), formerly known as Canopy Rivers, vaulted 57% higher in February. The stock is now up more than 170% year to date.
The biggest news for RIV in February was the completion of the company’s arrangement to transfer its stake in Terrascend to Canopy Growth (NASDAQ:CGC) in exchange for $115 million Canadian and shares of Canopy Growth worth around CA$170 million. This deal paves the way further for Canopy Growth, which spun off RIV Capital as a separate entity in 2019, to enter the U.S. market when federally permissible.
RIV Capital posted earnings of…
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