Investors will remember that 2019 was a bad year for cannabis stocks. But you will be surprised that even in the troubling year for cannabis sector, Village Farms Stock (TSX:VFF) (NASDAQ:VFF) actually delivered decent returns for its shareholders in 2019. The stock looks primed to impress even more in 2020. You are about to find out why now may be the best time to add Village Farms stock to your cannabis stock portfolio.
Investors who bought Village Farms stock at a time like this last year had all the reasons to smile all the way to the bank when the year wrapped up. While many cannabis stocks plunged to their multiyear lows last year and caused investors massive losses, VFF investors had a reason to be grateful for betting on the stock. VFF stock gained more than 96% in 2019. VFF stock gains would have actually been more had it not been for the shocks that hit the broader cannabis sector from the second quarter of 2019.
Currently, in the third week of 2020, VFF has begun showing strong signs of retracing its path back to the top. The stock shot up more than 15.6% yesterday to record its best day so far in 2020. Moreover, yesterday’s gain came on huge volume of 3.5 million shares, the largest volume we’ve seen since March 2019.
The stock’s sharp rise on large volume no doubt show growing investor interest in VFF. And there are good reasons why VFF is exciting investors now and we delve into that below. First, though, here is what you should know about the cannabis company we are discussing.
About Village Farms stock
For those investors who may be coming across Village Farms stock for the first time, here is a brief profile of the company. Village Farms is a cannabis grower that operates in both the United States and Canada. The company’s goal is to become a vertically integrated cannabis business. VFF is the majority shareholder in Canadian cannabis joint venture Pure Sunfarms.
Investors who placed their bets on the wrong cannabis stocks last year and got burned are this year looking for cannabis stocks that can make a difference in their portfolio. VFF has emerged as investors’ favorite pot stock in 2020. There are several reasons that could explain the excitement in Village Farms stock and here are a few of them.
VFF joint venture Pure Sunfarms lands its third provincial cannabis supply contract in Canada
Last fall, Canada made the important move of expanding its legal cannabis market, which opened just a year earlier. Through the so-called Cannabis 2.0, Canada approved the sale of more adult-use cannabis products, from cannabis-infused drinks to smoking devices or vape pens.
The sale of the newly legalized adult-use cannabis products under Cannabis 2.0 began in December 2019. VFF prepared itself well to take full advantage of Cannabis 2.0. In November, VFF announced that Alberta provincial administration had selected its majority-owned joint venture Pure Sunfarms to supply retailers in the province with a range of adult-use cannabis products.
Pure Sunfarms has also been selected by Ontario and British Columbia provincial administrations to supply their retailers with cannabis products.
New Mexico wants to expand its cannabis market
New Mexico has already legalized medical cannabis. Now New Mexico governor Michelle Lujan Grisham wants to expand the cannabis market in the state. The governor this week called on the state’s lawmakers to legalize adult-use cannabis this year. Two-thirds of New Mexicans support adult-use cannabis legalization. The legalization of adult-use cannabis in New Mexico will expand the market opportunity for VFF products and open a path for the company to increase its sales quickly.
Congress steps up efforts to lift federal cannabis restrictions
Although dozens of states have legalized cannabis in one form or another, cannabis remains illegal federally. That means companies like VFF still face a myriad of challenges going about their business.
Congressional lawmakers in Washington are working on solutions. Last year, the US House lawmakers passed two important bills for the cannabis sector. One of the bills, the SAFE Banking Act, seeks to free the big banks to do business with cannabis companies in states where cannabis is legal. Currently, big banks have shied away from working with cannabis companies, which for cannabis companies means limited credit funding opportunities. The other House bill, MORE Act, seeks to take down existing cannabis prohibition. House lawmakers are also exploring lifting some cannabis restrictions in a move that could benefit VFF and other cannabis companies operating in the United States.
Village Farms stock last year proved it can reward investors even in tough times for the cannabis sector. There is no reason why it cannot do it again this year. And for investors getting in at this point, Village Farms stock is no doubt a bargain.
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Disclosure: We have no position in Village Farms stock 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…