2020 is shaping to be a comeback year for marijuana stocks. We think a new cannabis bull run is coming and we are taking a look at 5 marijuana stocks to own in 2020 and why.
Efforts to legalize marijuana at the federal level are progressing steadily in the US. The US House Judiciary Committee last week passed a landmark bill that seeks to fully legalize marijuana at the federal level. Previously, the House passed a bill to allow federally regulated banks to work with marijuana businesses in states where pot has been legalized. Presently, some 33 states have legalized marijuana in one way or the other.
However, the fact that pot remains illegal at the federal level means that marijuana businesses in the US have been unable to realize their full growth potential. Therefore, the federal legalization of marijuana would widen the market opportunity for marijuana businesses in the US.
Canada, the first developed nation to fully legalize marijuana, has expanded its marijuana market with the legalization of more adult-use marijuana products, whose sales begin in December. Marijuana sales in the regulated market in Canada are still significantly dwarfed by black-market sales.
The factors holding back Canada’s regulated marijuana market range from a shortage of shops where people can purchase pot products to higher prices in the regulated pot market. However, the shortage of marijuana shops is expected to ease soon or later as the government wants to have 75 shops operating in Ontario eventually. Only 24 marijuana shops have opened in Ontario, a province of more than 14 million residents since full marijuana legalization in Canada a year ago. Canada’s marijuana companies are also starting to squeeze the black market with the introduction of competitively priced products. Experts have pointed out that Canada’s adult-use marijuana market is on track to double next year with the recent legalization of new adult-use marijuana products.
Here are 5 marijuana stocks to own in 2020 because of their long-term opportunity.
Aurora Cannabis Inc (NYSE:ACB): A great marijuana stock available at ground floor price
Based in Canada, Aurora is one of the world’s largest and well-known marijuana companies. Though based in Alberta, Canada, Aurora has a global footprint. It operates 15 global production facilities across 25 countries. Aurora is a vertically integrated and horizontally diversified marijuana business, whose operations touch on every key segment of the marijuana value chain. Here are four reasons you may want to own Aurora stock in 2020:
- Aurora defies headwinds in fiscal 2019 and how ready to capitalize on Canada’s expanded marijuana market
Aurora has adequately prepared to take full advantage of the expanded marijuana market in Canada. The company has developed a broad range of high-margin products, ranging from vape devices to edibles, that it intends to bring to consumers in Canada’s expanded recreational marijuana market.
Even as marijuana businesses in Canada struggled with shop shortages and a black market that continues to thrive a year after full marijuana legalization in the country, Aurora was able to pull triple-digit revenue growth of about 350% in its fiscal 2019 ended June. The expanded marijuana market provides an opportunity for Aurora to drive even greater revenue growth.
- Aurora strengthens executive team
Aurora recently created new senior executive roles: Chief Product Officer and Chief Integration Officer. The company has promoted two of its top-performing executives to lead these newly created executive roles. Aurora decided to expand its executive team as part of a strategy to maximize its opportunities in the marijuana industry, both in the expanded Canadian market and internationally.
- Aurora curbs spending to preserve cash and strengthen balance sheet
Aurora has stopped further development of certain of its facilities as part of an effort to expand responsibly. Putting those developments on hold will save Aurora about C$200 million in costs. And that should ensure that Aurora remains well-capitalized to run its operations and jump on new attractive opportunities as they rise.
- Aurora spots an attractive valuation
The broad selloff in marijuana stocks has brought Aurora down to its 2-years lows. But looking at how Aurora has positioned itself for long-term growth as well as the expanding domestic and international marijuana markets, Aurora’s current valuation clearly doesn’t reflect the company’s potential.
Aphria Inc (NYSE:APHA) spots attractive valuation and strong fundamentals
Aphria is a Canadian marijuana company with an international footprint. Here are four reasons you may want to own Aphria stock in 2020.
- Aphria continues strong revenue growth, and one top of that it is one of the few profitable marijuana companies
Aphria is currently in its fiscal 2020. The company released its fiscal first quarter in October. It reported revenue growth of 849% year-over-year to C$126.1 million. Net profit for the quarter came at C$16.4 million. The company is aiming for fiscal 2020 revenue between C$650 million and C$700 million, which the management said is now more within reach after solid first-quarter results.
- Aphria ready to capitalize on expanding marijuana market
Aphria recently doubled its production capacity, which positions it well to take full advantage of the recently expanded marijuana market in its domestic market Canada. Aphria has not only added more capacity but also implementing operation automation that should allow it to cut costs and in turn boost its profitability.
- Aphria partners with PAX Labs to enter vape pens market
To capitalize on Canada’s recently expanded adult-use marijuana market, Aphria is introducing new products. The company has partnered with PAX Labs to enter the vape pens market, a potentially lucrative marijuana-derivative product segment in Canada. As a result of the partnership, Aphria will be able to sell PAX Labs’ PAX Era vape pen brand in Canada when sales for such products open.
- Aphria going for a steep discount
The selloff in marijuana stocks this year has brought Aphria to its 2-years lows and nearly 70% off its all-time peak. But looking at how Aphria looks well-positioned for a powerful recovery, the current low price is an opportunity to grab the stock at a steep discount.
Canopy Growth Corp (NYSE:CGC): Discount valuation and extensive international presence
Canopy, one of the largest and well-known marijuana companies in the world, is headquartered in Canada. Its marijuana business serves both medical and adult-use or recreational markets. Canopy operates multiple marijuana brands, thereby catering to a broad range of consumer demands. There are several reasons you may want to buy Canopy stock heading into 2020.
- Canopy boasts a more development international footprint that many if not all of its industry peers. That positions Canopy well for robust growth in the future considering efforts in countries like Mexico to fully legalize marijuana.
- Canopy is about to enter the lucrative US market for CBD products. The company is also introducing new products to take advantage of Canada’s recently expanded recreational marijuana market. Moreover, Canopy boasts ample cash reserve to continue investing in its development and be financially flexible to jump on new opportunities as they arise.
- Canopy’s current low valuation, a result of the broad selloff in marijuana stocks in recent months, further makes it a great marijuana stock pick going into 2020.
- Canopy has a market cap of just $7 billion and cash on hand of $2 billion.
Cronos Group Inc (NASDAQ:CRON): US expansion positions company well for future growth
Cronos is a Canada-based marijuana company with an international footprint. It runs a diversified marijuana operation that serves both medical and adult-use markets. Cronos looks attractive marijuana investment heading into 2020.
- Recent selloff makes Cronos an attractive pot pick
Firstly, the recent selloff in cannabis stocks has made Cronos one of the cheapest pot stocks currently.
- Cronos expanding into the US market
Secondly, the company’s continuing growth and bright long-term prospects make it even more attractive. Cronos grew its revenue by nearly 240% year-over-year in the third quarter. Cronos recently completed the acquisition of several operating subsidiaries of Redwood Holding Group. With that transaction, Cronos has expanded its reach in the US, the largest marijuana market in the world that could grow even bigger with federal legalization of pot.
- Cronos adding capacity to be ready to fill the demand
Moreover, Cronos has been expanding its manufacturing capacity to better position itself to meet the demand for marijuana products in both domestic and international markets.
Village Farms International Inc (NASDAQ:VFF): a promising marijuana stock at a great bargain thanks to the recent selloff
Village Farms International is a marijuana grower with operations in both Canada and the US. Though VFF isn’t one of the top marijuana companies that frequently make headlines, you cannot it is one of the most attractive pot stocks right now for investors who may want to profit from the ongoing marijuana legalization.
- Selloff makes VFF a big discount opportunity
Village Farms spots an attractive valuation after the recent big selloff in the marijuana sector, which makes it a great discount opportunity for investors looking to profit from marijuana legalization in the US and Canada, and the expected legalization in countries like Mexico.
- Village Farms joint venture Pure Sunfarms doing well
Village Farms’ legacy business is growing vegetables, but the business is struggling as the company’s latest financial results show. However, Village Farms was clever enough to seize the opportunity in the marijuana market so the company’s fate is no longer tied to its struggling vegetable business. Village Farms entered marijuana and hemp markets through a joint venture called Pure Sunfarms, which it co-owns with Emerald Health Therapeutics. Pure Sunfarms did so well in the third quarter, becoming the top performing marijuana brand in Canada’s Ontario province.
- Village Farms on track to own a bigger piece of Pure Sunfarms
Village Farms currently owns a 50% stake in Pure Sunfarms, but that stake could rise after Emerald Health recently defaulted in an agreement.
We will be updating our subscribers as soon as we know more. For the latest updates on these 5 marijuana stocks to own in 2020 and other hot mj stocks, sign up below!
Disclosure: We have no position in any of the stocks mentioned and have not been compensated for this article.
Decision Diagnostics Corp (OTCMKTS:DECN) Explodes On COVID-19 Test Kit Opportunity
Decision Diagnostics Corp (OTCMKTS:DECN) is exploding higher after unveiling a new methodology for the screening of coronavirus. GenViroTM COVID-19 screening kit is the latest catalysts fuelling the stock’s price action activity in the market. Similarly, the stock has rallied by more than 300% as investors take note of the huge opportunity up for grabs as the coronavirus pandemic continues to cause havoc.
OTCMKTS:DECN Price Analysis
The ever-growing demand for coronavirus test kit presents a unique opportunity for the company to generate significant value. In return, investors have continued to push the stock higher even as the broader equity market continues to plunge into the bear territory.
OTCMKTS:DECN is currently trading in a steep uptrend after succumbing to bearish pressure in 2019. Given the strength of the upward momentum, the stock is closing in on its one-year highs as the break out shows no signs of slowing down. A rally followed by a close above the $0.08 mark should open the door for bulls to push the stock to two-year highs.
Similarly, the $0.05 mark is the immediate support level above which the stock remains a bull play. Conversely, a breach of the support level would leave Decision Diagnostics susceptible to further drops, probably back to the $0.03 level. However, given the developments on the global scene, the stock looks set to continue powering high on pullbacks.
Decision Diagnostics bills itself…
Is CytoDyn Inc. (OTCMKTS:CYDY) A Buy?
CytoDyn Inc (OTCMKTS:CYDY) has been making big moves lately, which have propelled the stock from December low of $0.270 to new highs. Notably, CytoDyn’s surge has come on significant volume as well, a clear sign of strong investor interest in the stock.
The excitement in CytoDyn stock that we are witnessing right now comes as the company has taken a leading role in the fight against the deadly Wuhan coronavirus. Moreover, investors have started pouring on CytoDyn stock as the company advances the development of its lead drug candidate as a treatment for about two dozen different cancer types.
Before we delve into the details, here is a brief profile of CytoDyn for those investors who may have just come across this company for the very first time.
CytoDyn operates in the healthcare sector as a biotechnology company. It is engaged in developing innovative treatments for a broad range of medical indications. Its lead product candidate is leronlimab (PRO 140). Clinical trials of leronlimab are ongoing for conditions such as HIV and multiple cancers with impressive results already attained. But CytoDyn is expanding its target conditions with leronlimab in the wake of the outbreak of the Wuhan coronavirus.
Here are some of the recent developments at CytoDyn that have excited renewed investor interest in its stock.
CytoDyn’s leronlimab under consideration as Wuhan potential coronavirus treatment
CytoDyn’s lead drug candidate leronlimab (PRO 140)…
Rainmaker Worldwide Inc (OTCMKTS:RAKR) Looking For Bagholders
On the OTC Markets, there are a lot of pump and dumps. Investors need to protect themselves from these types of scams and one, in particular, is Rainmaker Worldwide Inc (OTCMKTS:RAKR).
OTCMKTS:RAKR Price Action
While the price action recently has been positive, it’s just a matter of time before RAKR is trading in the double zeros again. It’s not a question of if it will happen, but when it will happen.
About Rainmaker Worldwide
According to its profile, Rainmaker Worldwide Inc. is headquartered in Peterborough, Canada, with an innovation and manufacturing center in Rotterdam, Netherlands. Its patented water technology provides economical drinking water wherever it’s needed and at scale. Rainmaker builds two types of energy-efficient, fresh water-producing technologies to participate in this opportunity. 1. Air-to-Water, which harvests fresh water from humidity in the atmosphere. 2. Water-to-Water, which transforms seawater or polluted water into drinking water.
Lack of Fundamentals
The biggest concern facing investors is the lack of fundamentals. OTCMKTS:RAKR has a current market cap of $41 milli0n, but reported just $1000 in sales in the quarter ending September 30, 2019. Making matters worse is that Rainmaker burned through $524,000 in the quarter. Throughout its history, Rainmaker has lost $14.7 million.
EU Horizon 2020 Project and $2.5 million grant
Last September, Rainmaker touted the award of the European Union (EU) Horizon 2020 Project for Rainmaker’s Water to Water Product. According to the press…