Not many investors have heard of these companies, but they should
Due to different types of growth in the cannabis industry, many stocks may be trading at highly inflated valuations, which is not entirely appealing to investors in this industry. Still, at different times, it is always important to keep in mind that there may be emerging companies that are small at the moment, but in the future, investments can generate significant returns. Such is the case of Auxly, IM Cannabis, and Clever leaves, which currently have growth opportunities that could make their potential explode in a matter of months.
In the case of Canadian cannabis producer Auxly, it has seen slow growth over the past year, but its expansion into dried flower products could pave the way for significant growth. So far, this company has focused on edibles and vaporizers (Cannabis 2.0 products) and has definitely done a great job in this area. Earlier this year, the company announced that in 2020 it led market share for 2.0 products in Canada. In its latest quarterly report on November 30, it showed that its revenues totaled $24 million, representing year-over-year growth of 514%.
Regarding IM Cannabis, it is a great option for investors seeking international exposure. In addition, on March 1, the company moved to the larger NASDAQ exchange. It is headquartered in Israel, which indicates that it has a strategic location close to Europe. According to experts, the international market will be worth $6.5 billion by 2025, which indicates that companies like these, although small at the moment, could be booming in the future.
And finally, there is Clever Leaves, based in New York, but with operations in Europe and South America. In Colombia, it has a lower cost of production, which gives it more profit margin. At the end of 2020, it showed sales of $12.1 million in 2020, which represents a 55% growth year over year.