Cannabis stock investors are all familiar with the biggest names in the industry – Canopy Growth (NASDAQOTH:TWMJF) and Aurora Cannabis (NASDAQOTH:ACBFF) among them – but these are not the only marijuana stock players in the industry. Building a portfolio that is genuinely diverse means paying attention to the developments of a few other players in the field.
Given the fickle state of the current market, from the Nasdaq to the Canadian Stock Exchange, it’s worth considering these five businesses as your next marijuana stocks to invest in.
The first among cannabis stocks to watch is Isodiol International Inc.(PINX:ISOLF).
Isodiol International Inc.(PINX:ISOLF) only recently established its footing on the international scene of the cannabis industry, with assets in China, the UK and Brazil. Following this international footprint, the company was able to formally list last week on the Canadian Stock Exchange. Their presence in China may decidedly set this cannabis stock apart from the others.
Rather than a focus on traditional dried cannabis flowers, Isodiol specializes in CBD extracts and organic hemp processed in a new China-based facility.
The company bought three patents from Hankang Biotech Company, also based in China. In the press release following the patent acquisition, Isodiol named the patents as the keys to the company’s “sophisticated industrial production process” for CBD extraction.
Increased revenue has made Isodiol capable of stepping up to the global stage, enabling it to stand out in an increasingly competitive market. The company’s CEO confirmed as much recently, stating “The acquisitions ensure the company has continued sources of CBD and scalability of production… The addition of the intellectual property and likelihood of obtaining an approved active pharmaceutical ingredient designation will ensure that the company holds its position as the world’s leading purveyor of CBD.”
Organigram Holdings (NASDAQOTH: OGRMF) is notable among marijuana stocks in Canada.
Organigram Holdings (NASDAQOTH: OGRMF) is another marijuana stock with a focus on cannabis oils. The company’s recent release of its Q2 operating results revealed record profits and sales, with a $1.1 million net income. This unprecedented growth received the credit for Organigram’s ability to complete phase two of its cultivation expansion.
Starting in June, Organigram’s newest facility will process a projected 22,000 kilograms of marijuana, with phase three of the expansion scheduled for completion also next month. This facility has the potential to generate more than $100 million for the company in cannabis.
Organigram’s Q2 report showed a sizable increase in the company’s flower sales (65%), but where growth really shined was in cannabis oil sales, which jumped 297% from 2016 to 2017. These growth trends indicate how cannabis oils have become increasingly vital to the industry, particularly as they become a popular supplemental item for MMJ users and pot smokers. Wise investors will keep their eyes on marijuana stocks with cannabis oil specialties, which may be key assets in this volatile market.
U.S. based Liberty Health Sciences Inc. (CSE:LHS, OTCQX:LHSIF) is another emerging marijuana stock to invest in.
In a sea of Canadian players, Liberty Health Sciences Inc.(CSE:LHS, OTCQX:LHSIF) holds its own in representing U.S. marijuana stocks. The company acquired a large stake of ownership (75%) in the William Noves Webster Foundation (WNWF) near the end of March. The Massachusetts-based foundation is already outfitted to meet growing demand in the state’s cannabis industry, and a dispensary and cultivation facility are currently underway.
Liberty’s $16 million purchase of its share in WNWF should pan out as a strategic investment.
Through partial acquisition of WNWF, Liberty gained access to the foundation’s already-existing integrated MMJ licenses for Massachusetts and approval for the construction of two additional state dispensaries. With the transaction money, they will be able to apply for a recreational cannabis license through the state.
Aside from this acquisition, Liberty conducts sales in Florida as well, with the opening of a second dispensary mid April in St. Petersburg. This month the company will open two more dispensaries, allowing Liberty to establish strong footing in a state that registers more than 93,000 MMJ patients. The United States may be lagging behind in the industry, but smart marijuana stocks like Liberty are capitalizing on cannabis markets in individual states where growth is more or less a guarantee.
Another cannabis stock to watch in the U.S. is General Cannabis Corp. (OTCQB:CANN).
General Cannabis Corp.(OTCQB:CANN) earned a place on the American stock index and subsequently reported tremendous financial results in its 2017 fiscal year. Between 2016 and 2017, the company saw its total assets grow by 454%, a $5 million gain. General Cannabis credits the diversity of its business structure – Chiefton Supply Co. clothing line and Iron Protection Group security firm among them – for its ability to achieve exponential growth.
The company’s diverse business structure extends to all the different elements that comprise the cannabis industry.
It is likely this distribution among ancillary companies will be key to the company’s success and stronghold in the market. General Cannabis tasks its Chief Operation Officer, Joe Hodas, with the responsibility of nurturing the different segments of this business model.
Commenting on his role, Hodas said “I have spent extensive time with each of our segment leaders, diving into staffing models, revenue projections and challenges. With initial analysis in hand and the existing General Cannabis infrastructure, I believe we can capitalize on new lines of business, cross-sale opportunities between segments, and operating efficiencies.”
Fifth among recommended marijuana stocks to buy now is Namaste Technologies (PINX:NXTTF).
Namaste Technologies (PINX:NXTTF) sales growth, per the company’s Q2 financial report this past week, was a high of 195%. Interestingly, this included more than $1 million in increased selling expenses. When sales are at a record high of $5.6 million, this figure is a blip on the surface; but what it does say about the company is its willingness to spend in order to get ahead.
In the company’s official second quarter statement, Namaste President and CEO addressed these expenses, stating “Advertising expenses related to online search services as well as other online promotional and social media tools utilized by the company to generate sales. These costs further represent the Company’s significant investment into search engine optimization and its ongoing customer acquisition strategy.”
These investments in customer experience reflect Namaste’s understanding of the unique role of online advertising and social media in the marijuana industry.
NamasteMD is the company’s telemedicine platform, relating directly to customers’ online experience. The platform will allow patients to access both doctors and dispensaries to prescribe, and fill MMJ prescriptions from the convenience of home.
Though NamasteMD has not yet launched, once it goes live the company expects to see a direct quarter-to-quarter growth increase from online sales, which also explains the huge investment in this aspect of Namaste’s business. With a strong focus on customer experience, Namaste’s smart model may place it among the industry’s biggest winners.
(For related industry news, read This Could Be the Next Big Hit For Marijuana Stocks)