As the mainstreaming of marijuana gathers momentum, a growing number of countries are expected to make consuming cannabis legal over the next few years.
Significant investments, improved distribution and refined marketing strategies mean theses public cannabis companies are only just starting to sprout. Cannabis stock investors are looking for the industry to deliver improvement this year.
With edibles now available across Canada, investors will be looking to see if Cannabis 2.0 can add much-needed topline growth to the Canadian cultivators. In the U.S., recreational legalization is expected to be a ballet issue in New York and Florida this year, which could reignite interest in cannabis stocks.
The recent start of recreational cannabis in Illinois and Michigan are prime examples of how U.S. multi-state operators (MSOs) can immediately benefit from having existing cannabis operations in a particular state. The state had an estimated $200 million in medical marijuana sales with research predicting sales surging to between $2 billion and $4 billion with adult-use cannabis legalized starting January 1.
The U.S. currently has 11 states with recreational cannabis approved with over 30 states approving various forms of medical cannabis. The easy path to legislative approval lies within these states with existing medical cannabis programs. A primary target being large states such as Arizona, Florida and New York.
High-flying and volatile cannabis stocks have caught the attention of both the Main street and Wall Street this year.For investors ready to jump on the hemp CBD bandwagon, there are a few potential stocks to consider buying at these levels.
- 1st Prestige Wealth Management (OTC: FPWM)
Last week, 1st Prestige Wealth Management (OTC Pink: FPWM), announced it will now operate under its new name, Charlestowne Premium Beverages Inc. The rebrand follows the acquisition of the developer and wholesaler of the alcoholic and non-alcoholic beverages that share the same name.
“The decision to change the Company name comes as part of the acquisition of Charlestowne Premium brands and a desire to reinforce the symbiotic relationship we have with the brand. We are looking at a new direction as a Company and have set our sights on the alcoholic beverage market where we hope to carve a niche within the CBD infused beverage landscape. The CBD market is growing extensively in the US, so that presents a huge market opportunity,” added Martin Ustin, CEO at 1st Prestige Wealth Management. “We are entirely aligned in terms of mission and goals, so it made sense to unite the company under that name. I look forward to announcing our short-term plans in the next few weeks and keeping our investors and stakeholders up to date through our corporate communications and press releases.” Although the company name will change, the market ticker will remain the same under FPWM.
Charlestowne Premium Beverages Inc (OTC Pink: FPWM) is a company that develops, produces, markets, and distributes alcoholic beverages worldwide. The Company’s portfolio showcases spirit brands such as Papa Vodka, Crocodile Tears Vodka, Proprietor’s Reserve Whiskey, and Lord Proprietor’s Special Reserve Whiskey. Charlestowne Premium also has Wholesaler and Import permits from the Alcohol and Tobacco Tax and Trade Bureau – the governing body for spirits in the U.S. under the Department of the Treasury.
To learn more, please visit www.charlestownepremiumbeverages.com
2. Tilray (NASDAQ: TLRY)
Tilray (NASDAQ: TLRY) has established an international presence in 13 different countries. The company also licenses U.S. cannabis brands like Marley Natural, Irisa and Goodship in Canada via its partnership with Privateer. In addition, Tilray has a major agreement with alcohol beverage maker Anheuser Busch Inbev (BUD). The research and development deal is currently restricted to Canada, but management expects the deal will eventually be expanded globally. Tilray recently announced a deal with InterCure Ltd. subsidiary Canndoc Ltd., in which 2.5 tonnes of medical cannabis will be shipped to Israel by Tilray’s Portugal-based subsidiary, Tilray Portugal Unipessoal Lda. The cannabis, which is slated to arrive in early-January, will be the first medical cannabis import that is allowed to enter Israel. In addition to the agreement, Tilray said it has agreed to buy up to 5 tonnes of whole flower from Canndoc beginning in mid-2020.
3. Aphria (NYSE: APHA)
Aphria (NYSE: APHA) is unique among cannabis stocks because of the company’s commitment to generating positive earnings and creating value for investors. Unfortunately, the stock has taken a hit in recent months following fraud accusations by short sellers. An independent review into the situation concluded Aphria did not overpay for the acquisition of its Latin American business, but several Aphria directors had conflicts of interest associated with the deal. Aphria’s current annual production capacity is 115,000 kg.
4. Canopy Growth Corp. (NYSE: CGC)
Canopy Growth Corp. (NYSE: CGC) operates in 15 countries and owns popular marijuana brands like Tweed, LBS and DNA Certified. In addition to its core cannabis business, Canopy is preparing to launch a number of new beverage, vapor and edible products. The company says beverages could eventually grow to represent a fourth of its overall cannabis market.
A few industries offer the long-term growth potential of legal cannabis which could ultimately mean that patient investors in the green rush are handsomely rewarded. If the snowball starts rolling toward a bullish event, the bounce buying volume coupled with the long buying volume from bulls and momentum traders could create an extremely volatile near-term spike in these four cannabis companies.