There is no doubt 2019 was a tough year for the hemp/cannabis businesses. However, there are a few hemp/cannabis stocks that still managed to make their investors proud. Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) is one of those stocks. Investors who put their bet on Neptune at a time like this saw their investment increase 130% by July of last year.
Neptune Wellness Solutions is already off to a strong start in 2020. The stock has gained more than 15% in the past week alone. Looking at how Neptune has positioned itself in the hemp/cannabis market, you cannot dispute 2020 is shaping up to be a great year for the stock. Then you notice that Neptune insiders are deeply invested in the stock. Insiders own more than 17% of all shares in the company. The company’s market cap of $280 million shows that insiders alone have sunk $48 million in the stock.
You are about to find out more reasons why Neptune Wellness Solutions looks to be a good pick right now. But first, here’s what you should know about the company we’re discussing.
About Neptune Wellness Solutions
Neptune Wellness Solutions has been around since 1998 and is headquartered in Laval, Canada. It is engaged in the extraction, formulation, and packaging of value-added cannabis products for both Canadian and global markets.
This is shaping up to be Neptune’s year for a number of reasons. But you can sum up all that by saying that Neptune is a company that is not only in the right place at the right time but also doing the right stuff. Here are other developments that are attracting investors to Neptune stock in 2020.
Neptune Wellness Solutions raises $4.0 million to invest in Cannabis 2.0 products
Neptune Wellness Solutions does not want financial shortage to stand in its ways at this time when it is focused on delivering superior shareholder value from investment in high-growth market segments. In that spirit, the company is monetizing some of its non-core investments to boost its cash reserve. On January 13, the company provided an update on its non-core investments monetization process. In that update, Neptune said it recently raised $4.0 million from selling about 2.0 million shares in Acasti Pharma Inc (NASDAQ:ACST). Following that transaction, Neptune still owns 1.0 million shares in ACST.
Neptune intends to invest the funds in the development of adult-use cannabis products in taking advantage of last year’s expansion of Canada’s recreational cannabis market under what is called Cannabis 2.0. Canadian authorities approved a range of new adult-use cannabis products, including cannabis-infused drinks and smoking devices otherwise called vape pens in October last year. The sale of those newly approved products began in December. Analysts see Canada’s adult-use cannabis products sales doubling to C$2.4 billion in 2020 thanks to Cannabis 2.0.
Neptune gears up for products launches that will make a huge difference in its financials
Neptune Wellness Solutions is expanding its consumer products portfolio in a move that promises to greatly boost its revenues and bring it to profitability much faster. In February, Neptune will launch its Forest Remedies brand, which consists of hemp-derived wellness products.
Forest Remedies products will initially launch online and late be available at US retailers. Neptune has partnered with American Media for public relations and marketing campaigns for the Forest Remedies brand.
In addition to Forest Remedies, Neptune has lined up other product launches under its Ocean Remedies brand for later this year.
Neptune strengthens its management team
Neptune Wellness Solutions recently added several highly experienced executives to its management team. It has tapped Denis Maranda, who previously worked at Dart Aerospace, as head of production at its Sherbrook facility in Quebec.
Neptune hired Eric Dodge as its senior brand manager. In that role, Dodge will oversee the growth of Neptune’s various product brands, including the Forest Remedies brand. Dodge joins Neptune from a subsidiary of multinational consumer products company Colgate-Palmolive. Moreover, Neptune hired Tyler Segel to lead creative work for all of its brands.
Neptune understands that a strong management team will be vital to steering it to maximize shareholder value.
Neptune Wellness Solutions looks poised for a big breakout given that investors are starting to notice its attractive potential. We expect NEPT to back trading near its 52-week highs sooner rather than later.
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Disclosure: We have no position in Neptune Wellness Solutions and have not been compensated for this article.
Forget APHA and ACB, Buy GTBIF and TCNNF
There are a lot of misconceptions going on when it comes to US legalization. Many investors are buying Aphria (APHA) and Aurora Cannabis (ACB) hoping to bank on what’s happening in the US. However, they are Canadian Licensed Producers and have no business in the US. Investors are buying them because they trade on the major exchanges, but that is the wrong move. The correct move is to buy the US multi-state operators like Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF).
On Election Day voters in New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana. South Dakota and Mississippi voters also approved measures to legalize medical marijuana.
There’s also the prospect of a more pot-friendly White House with President-elect Joe Biden. Vice Presidential Candidate Kamala Harris said at the debate a Biden administration would decriminalize marijuana at a federal level and expunge criminal records of people with marijuana-related offenses.
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves.
Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection.
The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96…
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…