The cannabis industry is booming, and investors are scrambling to get in on the ground floor of this new market. Pot stocks like CURLF stock, CGC stock, and IIPR stock are all vying for their place at the top of the industry.
The top marijanas penny stocks 2020 is a question that has been asked many times. CURLF Stock, CGC Stock, and IIPR Stock are all three top pot stocks in the market right now. Read more in detail here: top marijuanas penny stocks 2020.
Reviewing Some of My Favorite Pot Stocks from the Past
The legal marijuana industry is still in its infancy. As a result, it’s not uncommon to see marijuana stocks that were formerly favored plummet, while others that were previously unknown surge to challenge the most powerful pot stocks.
That said, I’ve reexamined three marijuana companies that I’ve previously been positive on: Canopy Growth Corp (NYSE:CGC), Innovative Industrial Properties Inc (NYSE:IIPR), and Curaleaf Holdings Inc (NASDAQ:CURA) (CNSX:CURA, OTCMKTS:CURLF).
Let’s start with Canopy Growth Corp., which you’re probably most acquainted with.
Canopy Growth Stock is a stock that has a lot of potential.
If you’ve been following the cannabis stock market recently, you’ll notice that Canopy Growth stock isn’t looking so hot. The stock of CGC has only increased by approximately 3% in the last year. However, between September 2020 and February 2021, Canopy Growth’s stock soared by more than 200 percent, only to plummet.
CGC stock has dropped by 31% year to date.
So, what does this imply for Canopy Growth’s stock in the future? We’ll have to look at its recent history to be able to anticipate that.
The COVID-19 epidemic caused the economy to collapse, and CGC stock was one of the first marijuana companies to suffer. Because Canopy Growth Corp is one of the most well-known—if not the most well-known—pot businesses, it was only natural that investors would dump the stock quickly.
Because legal marijuana is still a new sector, as I’ve discussed in previous articles, it will be one of the first industries to experience capital flight in times of economic instability, as investors seek greater predictability and security.
CGC stock suffered as a result of the situation, as did the Canadian marijuana industry, which hasn’t grown as quickly as many expected. Furthermore, the fact that Canopy Growth Corp is still unable to access the US marijuana market has harmed the stock’s performance.
But then, as the epidemic started to clear up and things began to return to some sort of normalcy, we witnessed a huge 200 percent increase in the price of CGC stock.
That level of enthusiasm, however, overheated Canopy Growth stock, and a few poor quarters, as well as no big mergers, acquisitions, or exciting news on the horizon, guaranteed that all of those gains were recouped.
So, where does Canopy Growth Corp stand now? It is, in my opinion, one of the most volatile choices available. As a result, depending on when they invest, investors may either earn a fortune or ruin their accounts.
CGC Stock is now on the down, therefore it seems to be a good moment to invest.
However, investors seeking for secure investments, such as those utilizing their retirement funds, might be better off exploring elsewhere, such as my next choice, Innovative Industrial Properties Inc.
StockCharts.com provided the chart.
Stock of Innovative Industrial Properties
Innovative Industrial Properties stock, perhaps my greatest selection since I began writing for Profit Confidential, has soared by hundreds of percentage points over the years. Every time I believe this marijuana stock is about to stutter and flag, it shows me wrong.
That’s why, for years, I’ve been a big fan of IIPR stock.
Innovative Industrial Properties Inc has a well-thought-out strategy for growing its real estate empire in each state that legalizes marijuana. It’s worth noting that the business doesn’t produce any marijuana. Instead, it rents out property where marijuana may be produced.
Because of its auxiliary relationship with marijuana cultivation, the business avoids many of the legal stumbling blocks that pure-play marijuana companies have when it comes to banking and interstate trade.
Furthermore, Innovative Industrial Properties is a marijuana real estate investment trust (REIT), which implies that investors may expect substantial returns as well as the possibility of further profits.
The stock of IIPR has more than quadrupled in the last year. It has risen by almost 40% in only the year 2021.
In other words, if you’re investing money you can’t afford to lose and you’re focused on the marijuana industry, Innovative Industrial Properties stock may be a safe choice.
The third business I’m looking at is a cross between the two previous companies, and it has the most potential in my opinion.
Stock of Curaleaf
Curaleaf Holdings Inc is a major marijuana grower in the United States. The business has operations all across the nation and is growing with each new state that legalizes marijuana.
Curaleaf’s ambitious expansionist strategy in the United States has propelled the business to prominence. It’s expected to be one of the first marijuana businesses to achieve a revenue of $1.0 billion.
However, I think Curaleaf stock has more potential than Industrial Properties stock since CURLF stock is subject to regulatory restrictions.
Curaleaf Holdings Inc has banking obstacles, interstate commerce problems, an inability to list Curaleaf shares on a major U.S. exchange, and an inability to effectively grow outside the U.S. without federal marijuana legislation.
These legal stumbling blocks are artificially limiting CURLF stock’s growth potential.
But as the roadblocks fall away, whether via complete legalization or piecemeal methods like the Secure and Fair Enforcement Banking Act of 2021 (SAFE Banking Act of 2021), we’ll see more of Curaleaf stock’s potential unlocked.
I expect huge increases from CURLF stock with every big accomplishment, all the way up to government marijuana legalization in the United States.
I have no doubt that the three companies listed above have the potential to make massive gains in the future years. However, it is critical for me to be realistic and give an honest assessment while assessing them.
To that end, I’d argue that, although Canopy Growth stock still has a lot of upside, it’s also extremely hazardous, given how volatile it’s been in recent years, even after establishing itself as a significant player in the marijuana industry.
Innovative Industrial Properties stock, on the other hand, has shown to be dependable in virtually every situation, making it an excellent choice for more cautious investors.
Curaleaf stock combines the best of both worlds, offering some volatility (and therefore greater potential) without the massive danger of Canopy Growth stock.
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