The stock market is a tricky game to maneuver even when you have a good grasp on what you’re looking at or what you’re trying to accomplish. The cannabis boom has already made some people lots of money and lost lots of people’s money. It truly is a gamble not for the weak of heart or bank account. If you’re not in the game already 2020 seems like a good time to step up to the plate, as more and more states regulate laws in favor of the green leaf. The federal laws are the tricky ones cannabis companies are going to have to navigate. With that being said with the help of the Motley Fool I have comprised a list of the top cannabis stocks as of right now.
1. Canopy Growth: $6.99 billion market cap
Canopy Growth (NYSE:CGC) is one to keep your eyes on. It is the largest pot stock by a compelling margin. Canopy is easily the second-largest producer with a long international reach. CGC can be found in 16 countries outside of Canada. The company’s $2.1 billion in cash and short-term investments has significantly helped its value in recent months. Steep ongoing losses and brining in a new CEO equals uncertainty surrounding the company’s future. Canopy Growth could also be one of the biggest winners if all goes well.
2. GW Pharmaceuticals: $3.21 billion market cap
GW Pharmaceuticals (NASDAQ : GWPH) is a cannabinoid-focused drug developer that doesn’t want to be thrown in with the other “marijuana stocks.” GW has been able to slither its way to the No.2 spot in terms of market cap. Epidiolex is GW’s cannabidiol-based oral drug and since its release in November of 2018 it’s net sales have soared. They have secured broad insurance coverage for Epidiolex, which is huge. It’s possible GW becomes profitable on a recurring basis this year.
3. Curaleaf Holdings: $2.75 billion market cap
Curaleaf (OTC:CURLF) is one of the largest vertically integrated multi-state operators in the U.S. Curaleaf assuming their pending acquisitions close will have 131 retail licenses spanning 19 states. Newly acquired Select along with privately held MSO Grassroots, Curaleaf may have a shot at $1 billion in annual sales this year. The November elections could play a big role in mining up investor interest in U.S. MSO’s this year.
4. Cronos Group: $2.33 billion market cap
Cronos Group (NASDAQ:CRON) for the majority of the year they have found themselves as a top-five pot stock according to its market cap. Even though there production is no where near on par with its peers, the company also continues to lose money on an operating basis, they did however receive a $1.8 billion equity investment from Altria Group in March 2019. With $1.53 billion in cash and investments still on their balance sheet, it’s the second most cash-rich pot stock in the industry.
5. Aurora Cannabis $2.13 billion market cap
Aurora Cannabis (NYSE:ACB) is possibly the biggest surprise on this list. From mid-March to the year’s end, Aurora shed over $7 billion in market cap. At it’s peak capacity Aurora is the largest pot producer and has a broader international presence than Canopy Growth. The company’s cash position appears to fall short to cover the many ongoing expansive projects. Aurora has also racked up $3.17 billion Canadian in goodwill following more than a dozen acquisitions since August 2016.
If you’re thinking about getting into the cannabis stock game I hope this information helps you decide on which route you want to take. Personally I could have made a small fortune last year when Cronos went up to $25 a share but I pulled the plug too early and sold out when I started loosing money, I still kick myself sometimes for not playing the long game. The stock market is a gamble but the benefits can be life-changing, good luck.