What are the best low-priced marijuana stocks to invest in now? Here’s a list to get you started.
As marijuana becomes increasingly legal in both the U.S. and Canada, it makes sense for growth-oriented investors to look for opportunities in the marijuana industry.
Up in Canada, where marijuana has been legal nationwide since October, marijuana businesses are booming, with the leading six producers growing revenues in the latest quarter a jaw-dropping 619% from the year-before quarter.
In the U.S., we’re behind. But recreational marijuana is now legal in 11 states, while medical marijuana is legal in 33 states—and the numbers are going up. The trend is clear.
Still, the federal government is a big part of the equation.
The Farm Bill, passed last December, has made hemp legal nationwide, and thus given a boost to the CBD market. But for true nationwide marijuana sales to begin, we need to see at least two more measures pass.
One is the SAFE Banking Act, which would protect banks that service state-legal cannabis businesses from being penalized by federal regulators.
The other is the STATES Act, which would recognize at the federal level the legalization of cannabis in states that have legalized it through their legislatures or citizen initiative.
Without a doubt, federal legalization will come, but if you wait until then, the best opportunities will be gone. Smart investors are making money now.
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However, there are real risks.
The Risk of Investing in Low-Priced Marijuana Stocks
Most marijuana stocks are low-priced, and low-priced stocks tend to be riskier, for several common reasons. In the case of low-priced marijuana stocks, it’s because most of the businesses are young, have inexperienced managements, little or no institutional sponsorship, and in many cases, are thinly traded. Every one of these factors raises the risk profile of these stocks. (A very rough rule of thumb is that the lower the price, the bigger the risk.)
On the other hand, if you get on board one of the companies early and it becomes one of the leaders of the industry years down the road, the profits could be huge—and that’s why the industry is worth a look, even at this early stage.
So, here we go, with profiles of ten low-priced marijuana stocks, all priced under $10 a share. I begin with the company that has the highest market capitalization—meaning investors in general perceive it as the best investment—and work my way down the list from there.
Note: None of these stocks is included in my Cabot Marijuana Investor. That includes the cream of the crop. These might be the next best ten—and any of them could easily “graduate” to my portfolio!
Low-Priced Marijuana Stock List
1. Harvest Health & Recreation (HRVSF)
Market capitalization $1.7 billion
Average Trading Volume/day 340,000 shares
Headquartered in Tempe, Arizona, Harvest Health & Recreation, Inc. is a vertically integrated multi-state operator (MSO) that had $19.2 million in revenues in the latest quarter. The company claims that once its in-process acquisitions are complete, Harvest will have the largest footprint in the U.S., with rights to more than 210 facilities, of which approximately 140 are retail locations, across 17 states.
2. The Green Organic Dutchman (TGODF)
Market capitalization $645 million
Average Trading Volume/day 560,000 shares
Headquartered in Toronto, Canada, The Green Organic Dutchman sells marijuana to both the Canadian recreational market and medical markets in Canada, Europe, the Caribbean and Latin America. The company has a planned capacity of 219,000 kilograms per year and is building 1,643,600 sq. ft. of cultivation and processing facilities across Ontario, Quebec, Jamaica and Denmark . In the latest quarter, revenues were $2.4 million.
3. Neptune Wellness Solutions (NEPT)
Market capitalization $391 million
Average Trading Volume/day 970,000 shares
Based in Laval, Quebec, Neptune is a nutraceuticals company (krill oil in particular) that has pivoted to cannabis. In the latest quarter, revenues were $5.7 million.
4. MediPharm Labs (MEDIF)
Market capitalization $389 million
Average Trading Volume/day 325,000 shares
Headquartered in Barrie, Ontario, MediPharm is not a grower, but a specialty processor, focused on cannabis extraction, distillation, purification and cannabinoid isolation. In the latest quarter, revenues EPT were $22 million.
5. iAnthus Capital Holdings (ITHUF)
Market capitalization $388 million
Average Trading Volume/day 580,000 shares
iAnthus is a U.S. multistate operator (MSO) with operations in 11 states, including 21 dispensaries in Arizona, Massachusetts, Maryland, Florida, New York, Colorado and Vermont. In the latest quarter, revenues were $18.5 million.
6. MariMed (MRMD)
Market capitalization $353 million
Average Trading Volume/day 248,000 shares
Based in Massachusetts, MariMed is a MSO with dispensaries in six states, as well as a new division focusing on hemp. In the latest quarter, revenues were $3.5 million.
7. Green Growth Brands (GGBXF)
Market capitalization $334 million
Average Trading Volume/day 370,000 shares
Based in Columbus, Ohio, Green Growth Brands sold $5.1 million of marijuana products in the latest quarter, but its big push is now on CBD sales, through both DSW stores (98 in the U.S.) and the company’s own Seventh Sense stores, targeted for up to 108 Simon malls in the U.S.
8. The Supreme Cannabis Company (SPRWF)
Market capitalization $287 million
Average Trading Volume/day 315,000 shares
Based in Toronto, Supreme Cannabis grows and sells marijuana for the adult-use markets in Canada through its 7ACRES subsidiary, and also owns Cambium Plant Sciences, a plant genetics and cultivation IP company, and Medigrow Lesotho, a cannabis oil producer located in southern Africa. In the latest quarter, revenues were $10 million.
9. Valens GroWorks (VGWCF)
Market capitalization $282 million
Average Trading Volume/day 425,000 shares
Based in Kelowna, British Columbia, Valens specializes in extraction services, transforming cannabis into crude oil, refined oil and also white labeling both. In the latest quarter, revenues were $2.2 million.
10. Emerald Health (EMHTF)
Market capitalization $233 million
Average Trading Volume/day 265,000 shares
Based in Victoria, British Columbia, Emerald Health sells marijuana and CBD oil (SYNC 25) in most Canadian provinces. In the latest quarter, revenues were $2.6 million.
Which Marijuana Stock Would I Buy?
When you’re dealing with low-priced stocks, diversification is critical, so I wouldn’t buy one, I’d buy a bunch, leaning toward the more successful companies at the top of the list.
However, I’d also check out the latest charts, and focus on stocks in uptrends not downtrends.
Are there any low-priced marijuana stocks that you like right now? Share your picks in the comments.
To get the list of higher-priced stocks I recommend buying now, take a look at Cabot Marijuana Investor. We doubled our readers money 16 times already and we’ll continue doing so in the weeks and months to come.
Timothy Lutts heads one of America’s most respected independent investment advisory services. Each week, Tim personally picks the single best stock in his exclusive Cabot Stock of the Week advisory. Build your wealth and reduce your risk with the top stock each week for current market conditionsLearn More