Wondering what cannabis stocks you should try on during the coronavirus outbreak?
You don’t have to sweat yourself searching for more because volatility has returned in a big way for the stock market. If you’re more of a buy-and-hold investor than a short-term trader, this volatility is a great opportunity to buy some of the best products at the most competitive prices.
Even if it has been referred to as “gone up in smoke” over the past years, the cannabis industry still possesses an extraordinary long-term growth runway. So, opportunistic long-term investors like you should not miss out on the chance of a lifetime to buy some ridiculously cheap cannabis stocks during this correction.
Here are four names of cannabis stocks that you’ll never regret buying when you look back even a couple of years from the coronavirus outbreak.
One of the country’s licensed producers that have remained to be a true standout is OrganiGram Holdings. While Canada struggles with supply shortages and/or bottlenecks in the very near-term, OrganiGram’s list of competitive advantages remains incredibly impressive.
Since they are located in an eastern Atlantic province, OrganiGram has front-row access to eastern Canadian provinces with adult cannabis-use rates which are higher than the national average. They also have a campus where cultivation, processing, and innovation occur. Despite the challenging times, their resources make it easy for them to reduce supply chain costs, output, and expenses.
OrganiGram is without a doubt one of the Canadian growers you’ll want to own moving forward. Other than their clear-cut advantages, they have also made significant investments into high-margin derivatives.
Among Canada’s most trusted growers that you should add on your personal portfolio is Canadian extraction-services provider MediPharm Labs.
Like OrganiGram, they also experience some growing pains. Several licensed producers have reduced their output and Ontario is still in the process of ramping up dispensary license issuances. But, these concerns haven’t kept MediPharm Labs from generating a profit. All they took was five months to go from turning on the lights to generating a no-nonsense operating profit, and two important factors.
First, the company does most of their hemp and cannabis biomass processing on contract, making volume and fee-based commitments work out in advance and understanding what sort of cash flow to expect. This information keeps management from overspending or expanding beyond its immediate processing needs, which is imperative to generating a profit.
Second, MediPharm is at the epicenter of derivatives — the greatest growth trend in the country’s cannabis space. Derivatives also offer much higher margins than traditional dried cannabis, ensuring licensed producers, like MediPharm Labs, make up a big percentage of their product portfolios going forward.
Planet 13 Holdings
A majority of MSOs have taken the approach of expanding into numerous legalized states. The multistate operator (MSO) Planet 13 Holdings, on the other hand, creates the mecca of cannabis experiences. They offer something unique to the table that no other MSO can.
Just west of the Las Vegas Strip in Nevada, Planet 13 Holdings’ 112,000 square-foot SuperStore is the largest dispensary operation in the United States. In addition to providing an insanely broad assortment of cannabis and derivative products, their SuperStore contains a bistro, events stage, and consumer-facing processing center.
It’s true, uniqueness is what sets Planet 13 apart from others, but it does not stop there. They have also done an incredible job of incorporating technology within its dispensary to make user-friendly and informative customers experience.
Innovative Industrial Properties
Lastly, you might want to consider the cannabis real estate investment trust (REIT) Innovative Industrial Properties.
Innovative Industrial Properties acquires medical marijuana growing and processing and leases them out for an extended time. In such a way, the company can generate healthy amounts of rental income for periods of 1 to 2 decades and pass along annual rental increases that help them stay ahead of the inflationary curve.
Another thing to consider about Innovative Industrial Properties is that they remain in the driver’s seat when it comes to sale-leaseback agreements.
As four of the most profitable pot stocks in the world, you will never regret buying these high-yielding cannabis stocks during this coronavirus outbreak.