Investors still on the fence about cannabis stocks have a couple of options to consider
A small market rally has been seen for the top marijuana stocks now that August is coming to an end. Many of these companies have been looking to hold on to some of those gains in order to enter the fourth quarter on solid footing. Still, there continue to be delays in federal cannabis reform in the US that could affect the industry as a whole. Many investors have taken advantage of the recent attempts to end prohibition in order to understand which firms really have the upside to be big decisions in the coming years.
One clear example right now is Sundial Growers, a Canadian company that focuses on the distribution and cultivation of marijuana for the recreational market. Pre-rolls, flowers, and vaporizers are some of the inhalable products that customers can get through this brand.
Among the recent highlights was the purchase of Alcanna, Canada’s largest privately held liquor retailer. A move like this may help the company to be in a better position to produce more significant numbers in the future.
Fire & Flower Holdings is also a good option at this time. With more than 85 corporate-owned stores, the company is considered a major retailer of adult-use cannabis in Canada. Through its wholly-owned technical development subsidiary Hildyre, the company is creating a detailed retail operations strategy.
It has now also gained entry into the US cannabis market through a creative licensing agreement with American Acres. This gives it access to key markets such as Arizona, California, and Nevada.
On the other hand, there is a promising stock of Neptune Wellness Solutions. The company operates as an integrated health and wellness company in Canada, the US, and internationally. Its main goal is to design a portfolio of lifestyle brands and consumer packaged goods products.
A few weeks ago, the firm released its financial results for the first fiscal quarter of 2023. It was certainly quite positive as it reported total revenues of $16.3 million, compared to $10.1 million or a 61% increase for the same period in fiscal 2022. Information like this is a clear indication of why adding Neptune to the investment portfolio is a great idea.