Three cannabis stocks worth watching this month

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There is a lot of potential for cannabis to regain its previous levels this year, starting now

After a difficult year in general for all cannabis stocks, the expectations for the market to make a full recovery are still projected to not occur until after this year’s second quarter. Even though most companies took a hard hit while seeing their share prices to fall, there might be some counterparts that can aid in a faster recovery. The underlying technology behind several of the internal processes in these businesses can really represent an investment opportunity without thinking too much about how the final product behaves in the market. Three cannabis stocks are perfect examples of such opportunities.

Grow Generation has 25 stores located across eight different states. In the third quarter, it generated $21.8 million in revenue, which was up 159% compared to the same quarter a year earlier. Another positive aspect is that 48% of the hydroponic supplies are organic, and this is part of the market that will continue to increase in demand. The only concern that could slow down this company, is getting the funds to finance operational costs, which have been a struggle.

KushCo Holdings, on the other hand, provides products and services to the cannabis industry in general, the last update is some new distribution agreements with four different cannabidiol (CBD) brands in the US. In the last quarter, the company generated revenue for $46.97 million, which is up 135.3%. And for this year, the total annual revenue is estimated at $230 million. For long-term investors, this is probably a good option as the market is expected to continue growing.

Lastly, Innovative Industrial Properties offers financing services for the medical cannabis sector of the industry, using sale and leaseback deals and capital. While it is a great business model for now, it does have some risks in the future. It has an edge now due to federal restrictions but, focusing on big companies may reduce the margin of profit as they need to offer better deals to close big companies, and small ones might represent a risk of being put into receivership.