Every market is tricky, especially if you are new to entrepreneurship. Getting rich or, in other words working your way to the top is challenging, especially today when there are too many niches to choose from. All a person can do is rely on current market trends and hope that predictions will come thru at one moment. However, what is certain is that some sectors have more potential than others. One of them is definitely the cannabis market. Once a controversial topic, cannabis is possibly one of the most popular plants out there, and I’m not talking only about recent history. When something that was once restricted becomes legal, interest in such products becomes extreme.
Now, you might think that all you need to do is invest in an uprising company and seal the deal. Don’t make this mistake. Before investing your money in anything, regardless of which industry is in question, you need to take some time and explore what your best possible option is.
As a cannabis enthusiast and someone who has worked more than four years in the industry, I will help you lower the risk and invest in something worthy.
Now, Adweedtising specializes in marketing, but by exploring current cannabis marketing trends, we picked up lots of helpful information not available to the general public. When combining that information with current predictions, it’s safe to say that the following companies are worth your time (aka money).
- Innovative Industrial Properties
- Cresco Labs
- Scotts Miracle-Gro
- Curaleaf Holdings
Disclaimer: The following information is prone to minor changes because market trends vary daily.
In addition, I’m not promising that investment in these companies will pay off; just pointing out which companies are most likely to experience a boom in the following years.
1. Innovative Industrial Properties
Market Value: $3.10B
Current Stock Price: $111.75
Innovative Industrial Properties (we’ll call the company IIPR from now on) is referred to as a real estate investment trust REIT). IIPR invests in industrial facilities and greenhouses for the medical cannabis industry. IIPR was founded in 2016 and had only one property initially. From 2016 to the end of 2020, the number of properties under their umbrella grew to 66 and now have 111.
Their diversified portfolio spans 19 states. Nine of those states, including Pennsylvania, California, and Illinois, account for about 90 percent of its 8.6 million square feet of all rentable space.
In September, IIPR bought a property in Massachusetts with about 104 square feet of greenhouse and industrial space for $207 per square foot, or $21.5 million.
This property produces about 32000 pounds of cannabis flower per year of CURLF (Curaleaf Holdings). CURLF is their triple-net lease tenant.
Currently, IIPR leases five processing and cultivation facilities to the Curaleaf mentioned above, including three dispensary locations.
Alexander Goldfarb, Piper Sandler’s analyst, gave REIT an excellent rating, with a 38 percent higher target price( $138) compared to current levels.
Also, Goldfarb is currently stating that REIT is experiencing some problems with one of its tenants in California, Kings Garden. This cannabis cultivator accounted for about eight percent of IIPR’s whole revenue in the analyzed second quarter and missed July’s rents. However, this is far from alarming.
2. Cresco Labs
Market Value: $1.009B
Current Stock Price: $2,48
Cresco Labs, CRLBF, represents a multistate operator with various operations in about ten states while sporting 21 production facilities, 53 retail licenses, and 53 operational dispensaries. Cresco Lab’s national brands include Reserve, Cresco, Mindy’s (edibles), and Remedi.
When you look at the wholesale basis, more than 350 products and about 5000 stock-keeping units are currently sold in more than 1000 dispensaries throughout the U.S.
In July, Cresco Labs announced that it would acquire European and U.S. cannabis cultivator Columbia Care, also known as CCHWF, in a complete all-stock translation worth more than $2 billion. For every share held in Columbia, shareholders will receive 0.5579 Cresco shares. This transaction should be completed by the end of the year.
After the merger, Cresco is expected to be the largest multistate operator.
This company is appealing because Cresco is one of Wall Street’s most favorable companies.
Market Value: $82.69B
Current Stock Price: $45,76
Moving on to Altria, the world’s 153rd most valuable company.
At the beginning of September, Juul Labs decided to pay $440 million to settle a two-year-long investigation into the company’s day-to-day marketing practices for high-nicotine vaping products. Actually, Altria is Marlboros’ parent. Altria paid over $12.8 billion to purchase a 35 percent share of Juul Labs.
What about their marijuana stocks?
Altria owns about 45 percent of Cronos Group, or CRON, a large Canadian marijuana group. In addition, the company owns 10 percent of BUD (Anheuser-Busch In-Bev). It also has current warrants to buy an additional 10 percent of the companies mentioned above. This allows Altria to control Cronos in the future. The contracts expire in March 2023, meaning that Altria is supposed to control Cronos by this time next year.
4. Scotts Miracle-Gro
Current Stock Price:$49.39
In 2022, Scotts Miracle-Gro experienced quite a bit of a downfall, with its shares down 50 percent for the year.
In March, the company made significant progress in the medical marijuana field when firm RIV Capital acquired Etain Health, New York state’s original medical marijuana producer, for about $247 million.
Also, Scotts Miracle-Gro invested more than $150 million into RIV Capital. This investment occurred in August 2021. Furthermore, additional investment was made for another $25 million. When combined, these investments make up a 42 percent ownership stake in RIV Capital.
However, during the first quarter of 2022, Scotts Miracle-Gro investors experienced a pretty bumpy ride. Profits seem to be going down.
On the other hand, investing in Scotts Miracle-Gro is still recommended as long as you take extra caution and consult an expert.
5. Curaleaf Holdings
Current Stock Price:$5.19
Curaleaf Holdings is a pure-play cannabis firm that was formed back in 2010 in New Jersey. Curaleaf Holdings developed one of the first vaporizers that were able to administer a (single) measure of medical marijuana dose.
Curaleaf Holdings operates in more than 20 U.S. States, including Arizona, Florida, Illinois, New York, New Jersey, etc. It operates and owns 26 cultivation sites and 136 dispensaries. Curaleaf is different because it uses science to enhance the overall experience.
In August, Curaleaf announced that its European company obtained 55 percent of Four 20 Pharma, a famous German distributor, and producer of medical cannabis. The German cannabis market is worth more than 200 billion euros, while Four 20 Pharma GMBH has about 10 percent market share. Germany is expected to legalize adult use at the beginning of 2023, which is a perfect investment opportunity. However, I must mention that marijuana stocks are often traded over the counter resulting in very thin volumes. So, make sure to limit stop-losses and orders when investing.