Cannabis stocks are expected to be the fastest-growing stocks. Cannabis has received a wider acceptance in the last few years and now many states and nations have been legalizing it for medicinal and recreational usage. Coming into 2020, Cannabis trends in Canada and the USA are all set to improve. The COVID – 19 has caused a great dip in sales in many states. The lockdown and social distancing norms hurt the sales badly. In this article, we have jotted down the list of cannabis stocks that are expected to rise in the second half of 2020.
Innovative Industrial Properties – IIPR (NYSE)
Innovative Industrial Properties Inc is one of the leading REIT (Real Estate Investment Trusts) that focuses on the construction, acquisition, disposition, management and supply of different kinds of facilities to the tenants in the medical marijuana industry. It has got over 60 medical cannabis-based properties across 15 states in the USA. The company is growing strongly as it has purchased 10 new properties at the beginning of this year. Though the impact of the COVID-19 pandemic has slowed down the pace, IIP has managed to show a good rise in revenue and earnings. The share price of the company has hit the dip and it is the right time to buy the stock especially if you are interested in cannabis stocks.
Canopy Growth Corp – WEED (TSE)
Canopy Growth is certainly one of the hottest cannabis stocks at the moment. Recently, Bank of America has given a price target of [email protected] for CGC stock and they have also given a Buy rating. Canopy Growth is perfectly positioned at the moment that can handle the cannabis downturn. It has got an incredible financial backer, Constellation Brands. Many investors are now interested in companies with a healthy balance sheet rather than the ones which project a future growth potential. Experts estimate that Canopy will be able to cut down the losses this quarter to CA $30 from CA $170
3. Tilray Inc – TLRY (NASDAQ)
Tilay Inc is headquartered in Toronto in Canada and has operations in Germany, New Zealand, Portugal, Australia, and Latin America. It’s the first company to export medical cannabis legally to Australia and New Zealand from North America. This pharma company is dedicated to the development of marijuana-based drugs, medicines, oils, drops and other products. It offers services worldwide and expanding its horizons at a good pace. At the beginning of the year 2020, Tilray has appointed two new executives. It has appointed Jon Levin, the former Revlon executive as COO.
Sprott Inc – SII (TSE)
Like IIP, Sprott Inc is an asset management company that offers investment management services to medical cannabis-based companies. It is based in Canada and provides portfolio management, investment management, consulting, and broker-dealer services to clients in the cannabis industry. Sprott Inc acquired Tocqueville Asset Management LP for $50 million in January. This transaction has increased the Sprott’s total assets under management to $1.8 billion.
Cronos – CRON (NASDAQ)
There are two reasons that have made Cronos one of the top cannabis stocks of 2020. One, a healthy balance sheet with $1.4 billion in investments and cash. This cash fortified balance sheet gives Cronos an ample scope to sustain the COVID – 19 impact. The other reason is there is a good chance that their balance sheet may permit them to kickstart investing instantly once the Coronavirus fades away.
Aurora – ACB (TSE)
Aurora is a leading cannabis company in Canada. It’s always been the second biggest player right behind Canopy. It fares as well as Canopy in terms of production capacity and sales. The problem with Aurora is the balance sheet. It has faced cash burn problems multiple times and has got minimal liquid assets.
Green Thumb Industries – GTII (CNSX)
Green Thumb Industries has got an expansive cannabis operation across the US. It has reported a yearly growth rate of over 250% in the last quarter of 2019. They have also opened the new stores in Pennsylvania, Florida, Ohio, New Jersey etc. Ohio and Illinois have reported marvellous cannabis sales in March. GTI is the largest seller of cannabis products in those two states.
The Covid-19 outbreak has shown a negative impact on cannabis stocks. But, the companies with a strong balance sheet are expected to rise. The long term bull thesis of cannabis stocks is perfectly intact. As an investor, you have to be a bit cautious during these times.