The cannabis market continues to heat up
The marijuana market continues to gain strength since 2019 rolled around and, consequently, so has the marijuana stock market. In general, all marijuana stocks have continued to see gains, with only a few faltering here and there. Going forward, a few companies, in particular, could be the best options for parking investment money, including Real Brands, Canopy Growth, Innovative Industrial Properties (IIP) and Aphria.
Real Brands is introducing Omega Hemp, a drink infused with cannabidiol (CBD), this year. CBD beverages have already been forecast to be a huge industry in 2019 and Real Brands is positioned to be one of the frontrunners. In addition to Omega Hemp, the company has plans to also delve into three other CBD sectors – edibles, lotions and smokable products.
Canopy Growth doesn’t need much of an introduction. It already has 4.3 million square feet of licensed cultivation space, but this is only part of what it wants to open. By the end of this year, it will have around 5.6 million square feet and will be generating around 100,000kg per one million square feet. Most of its production supply has already been earmarked for existing contracts, as well as other projects that are being negotiated.
IIP is a real estate investment trust (REIT) that focuses on the medical marijuana industry. REITs allow investors to join a central investment pool to collectively own real estate properties and are often seen as a safer option for the investors. This is because REITs are required by law to distribute a minimum of 90% of their taxable income to shareholders in the form of dividends.
Aphria has been caught up in a bit of bad publicity lately, but the company is still showing signs of growth. Its founders had been accused of self-dealing transactions involving Latin American companies to which Aphria presented steep markups, which resulted in its CEO, Vic Neufeld, announcing that he would step down from the firm. The announcement proved popular with investors and the company’s stock reemerged from its slide.
There is still a long way to go in 2019 and a lot can happen. Most analysts predict that investments in the marijuana stock market should not be viewed as short-term solutions but, rather, as long term options that could see results as far out as four or five years, if not more. Any trader looking to get involved in marijuana stocks needs to keep this in mind before moving forward.