The broad selloff in marijuana stocks across North America in recent months did not spare MariMed Stock (OTCMKTS:MRMD). At $0.64/share currently, MariMed is at its record lows and sits about 85% below its 2019 peak.
But MariMed doesn’t belong at $0.64. Below we discuss why MariMed stock is one of those hemp/marijuana stocks you may want to own in 2020. But first, let’s introduce MariMed.
About MariMed Stock
For investors who may have just come across MariMed for the very first time, here is a brief profile of the company. MariMed is an American hemp and marijuana company based in Massachusetts and operates in several states. The company already has several hemp and marijuana product brands to its credit and looks to expand its product portfolio.
The big selloff in recent months has not only wiped out the gains that marijuana stocks like MariMed made early this year, as the chart shows, but also brought many of these stocks to their multiyear lows. However, 2020 promises to be a year of recovery for marijuana stocks and here are three good reasons you may want to buy MariMed going into the new year.
- MariMed stock continues robust revenue growth
MariMed currently operates in only six states, meaning it still has a limited presence in America’s hemp and marijuana markets. But you will be surprised how MariMed has maintained strong revenue growth quarter after quarter.
On November 27, MariMed released its third-quarter financial results. It reported a revenue increase of 230.9% year-over-year, supported by the strong performance of both its marijuana and hemp divisions. MariMed’s revenue increased by 774% year-over-year in the second quarter.
- MariMed stock has bright growth prospects
Having a foothold in both hemp and marijuana markets means MariMed has enormous revenue potential. The hemp market in the United States generated in $1.1 billion in revenue in 2018. The US hemp market revenue is forecast to grow to $2.6 billion by 2022. The US marijuana sales hit $10.5 billion in revenue in 2018 across medical and adult-use markets. By 2022, US marijuana sales are forecast to top $22 billion.
Looking at where the US hemp and marijuana markets are forecast to be in the next few years, you cannot dispute that MariMed still has a long growth runway ahead. MariMed stock will no doubt benefit as the company’s revenue grows bigger and financials strengthen.
Going into 2020, there is a lot of focus on the Illinois marijuana market. The state this past summer joined a dozen other states to legalized adult-use or recreational marijuana. The sale of recreational marijuana is set to begin in Illinois on January 1, 2020. MariMed has prepared itself to take advantage of the expanded marijuana market in Illinois. In October, the company completed the acquisition of two marijuana retail locations in Illinois, ensuring it will have strategic outlets to fill the demand for adult-use marijuana products in the state when sales open next month. MariMed intends to open two more marijuana retail locations in Illinois.
- GenCanna Global exploring IPO and MariMed stands to reap big
GenCanna Global, a Kentucky-based hemp producer, is exploring an IPO (initial public offering). On September 23, GenCanna announced that it had tapped Goldman Sachs (NYSE: GS), one of the world’s top investment banks, as its financial advisor. In that position, Goldman will assist GenCanna with evaluating an IPO as well as other strategic alternatives.
Where does MariMed come in in GenCanna’s affairs? For MariMed, GenCanna is both a customer and an investment. As a customer, MariMed supplies GenCanna with hemp seeds. In fact, sales to GenCanna have been a major revenue source for MariMed’s hemp division. Therefore, MariMed stands to benefit if the arrangement with Goldman helps GenCanna to become more successful in its hemp production business. As an investment, MariMed owns about one-third of GenCanna. Therefore, a successful GenCanna IPO could deliver big gains for MariMed.
MariMed applauded GenCanna’s arrangement with Goldman.
“We are delighted that Goldman Sachs…will be providing financial and strategic advice to GenCanna. Goldman will assist in guiding GenCanna in connection with its future financing and expansion plans,” commented Bob Fireman, CEO of MariMed.
MariMed stock presents a major discount entry into a company with a bright future. MariMed stock is one of those few promising stocks that give investors exposure to both lucrative hemp and marijuana markets.
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Disclosure: We have no position in MariMed stock and have not been compensated for this article.
What Do Investors See In Medical Marijuana Stock (OTCMKTS:MJNA)?
Medical Marijuana Stock (OTCMKTS:MJNA) has emerged as one of many investor’s favorite pot stocks in the legal cannabis universe in 2020. The stock is already up about 10% in 2020, demonstrating how investors have warmed up to the stock early on in the New Year.
Following a disastrous 2019, cannabis investors lost money but have also learned that their best bets are stocks with strong fundamentals. They are looking for companies that have positioned themselves well in the cannabis industry and have what it takes to go for the opportunities. That is why MJNA stock is catching a lot of investor attention in 2020 because of how it has positioned itself in the cannabis market.
Robust revenue growth and strong financial position have also helped put MJNA on the radar of investors hunting for quality cannabis stocks. Revenue at MJNA more than doubled from $26.5 million in 2017 to $60 million in 2018. MJNA is also not in financial distress as may be the case with other cannabis companies out there. The company finished the third quarter, the most recent reported period, with $5.5 million in cash reserves.
Moreover, MJNA has recently taken steps to expand into new international markets and invest in companies that are leaders in their segments. These prudent actions are helping lift Medical Marijuana stock as more investors learn about them.
About Medical Marijuana stock
Is Tilray Inc (NASDAQ:TLRY) A Buy Or Sell?
For Tilray Inc (NASDAQ:TLRY) and the rest of cannabis stocks, 2019 was no doubt a bad year. But 2020 is shaping up to be a promising year for the stock. To start with, Tilray stock has already gained 8.35% year-to-date. If that says anything, it shows following the broad selloff in Tilray stock last year, we’ve got to a point where sellers are giving way to buyers in the stock.
There are several catalysts that should continue driving NASDAQ:TLRY as you’re about to see. First, below is a brief profile of the company we’re discussing.
Tilray is a Canada-headquartered global cannabis company. It is engaged in activities of cannabis cultivation and processing as well as marketing and distribution of cannabis products. Tilray already has several cannabis products brands to its portfolio. It operates across five continents through subsidiaries in Canada, Australia, Germany, and Portugal.
Following the broad collapse of cannabis stocks in 2019, investors are looking for cannabis stocks that can make a positive impact on their portfolios in 2020. Tilray stands out as an attractive cannabis stock pick in 2020. Here are some of the exciting things about the company.
Tilray CEO sees a bright future for the cannabis industry
On January 25, Tilray CEO Brendan Kennedy spoke on Bloomberg. In that interview, Kennedy framed a rosy outlook for the…
Is Cronos Stock (TSE:CRON)(NASDAQ:CRON) A Buy?
Cronos Stock (TSE:CRON)(NASDAQ:CRON) stock fell 9.22% on January 24, marking its steepest decline so far in 2020. The stock plunge followed an important disclosure that you would only expect from a company that is trying to be straight and transparent with investors. Here’s what happened.
On January 22, after market close, Cronos made a regulatory filing detailing changes in its executive team. In that SEC filing, Cronos revealed that David Hsu and William Hilson have stepped down as its chief operating officer and chief commercial officer, respectively. Unfortunately, some investors read bad news in the executive exits and sold their shares in Cronos.
But a careful reading of the filing doesn’t seem to raise any red flags. Therefore, the big stock plunged points to investors panicking to the degree of responding to a mosquito bite with a missile.
There is no doubt that 2019 was a difficult year for cannabis stocks and Cronos Stock is no exception. But before the uncalled for reaction to Cronos’s regulatory filing, we had been at a point where sellers were starting to give way to buyers in Cronos stock. The stock has gained about 8.0% in the past one month. It had gained more than 13% year-to-date before the January 24 big selloff.
About Cronos Stock
Cronos Stock is a Canada-based global cannabis company. Cronos operates through subsidiaries and…