Several cannabis stocks are ripe for picking by investors ready to expand their portfolios
December has practically reached its first half, indicating that 2022 is just a few months away from being history. This means that there is a great opportunity to still own stocks with potential to finish and start a new year off right. Experts say that sometimes the best opportunities in this industry are the ones that are overlooked. Organigram Holdings AFC Gamma and NewLake Capital Partners are companies that don’t get much attention, but that doesn’t mean they aren’t the perfect opportunity to end the year with a solid portfolio.
These three companies are relatively small, with a market value of less than $400 million, but their bond histories prove to be quite stable. While it is true that Organigram did not have an easy year, the company has quietly shown steady revenue growth. Considering that its stock trades at a forward price/sales ratio of only 2.5, December seems like the right time to take a stake in the company.
For its part, AFC Gamma has been overshadowed in the market but continues to outperform. Unlike other stocks, this company is based on a real estate investment trust (REIT) that does not own property.
In order to have a unique business model, the firm provides loans to cannabis companies, using the companies’ real estate as collateral. Based on recent results, it appears that its income from interest payments on its loans has been doing quite well.
And finally, there is NewLake Capital Partners, a company that, while not as well known, is worthy of a second look. With a market capitalization of approximately $365 million, this company does not get enough attention, especially since it competes with Innovative Industrial Properties.
However, even though it does not have a long track record, NewLake has a dividend yield of 8.7%, and its shares trade at just 18 times earnings. The company has shown a strong commitment to a quarterly dividend in a short time by raising it for six consecutive quarters, and this may be something to keep in mind.