Here are the top marijuana stocks for September 2020. Weed is easily the fastest-growing industry in the nation. Despite its momentum, its stock figures aren’t as predictable. Over the past few years, pot stocks have soared and dipped to the dismay of investors. If you can handle the growing pains, here’s where you should invest.
Our Favorite: Valens Company
Since March 2019, pot stocks have had a bumpy road, to say the least. Some pure-play weed stocks fell down by a double-digit percentage last year. For smart investors, the uncertainty in the market allows them to buy pot stocks for cheap. One of the most attractive pot stocks to buy is the Canadian ancillary company, Valens Company.
Valens Company (OTC:VLNCF) provides extraction and analytical testing services. These help produce extracts, oils, and concentrates. Since mid-February, it has experienced a dip of about 45 percent in shares. Why invest in Valens if it’s losing steam? Investors are looking toward its future as a major player in cannabis infusions.
Right now, there’s a battle among licensed producers (LPs) in Canada to become the top player. Valens is well on its way to becoming the most trusted name in third-party extraction. It’s made a profit in most of the last five quarters. The COVID-19 crisis hurt its stock value, but the same could be said for most pot stocks.
Valens’ operating model works seamlessly. It works by establishing multi-year volume and price contracts with its clients. That gives it a predictable cash flow to plan its next move. Its white label business has established its name in manufacturing and formulation. In September 2019, it made a five-year deal with A1 Cannabis Company to produce pot drinks.
As we mentioned above, pot derivative products are on an upward trend. Dried flower buds are still the favorite among users, but these products run the risk of blending together in a sea of sameness and oversupply. Premium derivative products can bring in higher profit margins. They can also help diversify a company’s product portfolio.
MediPharm Labs’ (PTC:MEDIF) provides weed extraction and processing services. They produce a wide range of oil, concentrates, and other infusions. The company is focused on growing its processing facility throughput by up to 200,000 kilos annually. This extra capacity could provide new contracts with the supplies they require.
MediPharm has processing commitments with many Canadian LPs. These include Canopy Growth, TerrAscend, and Supreme Cannabis Company. Its most important deal was made with Cronos Group in May 2020. The $30 million deal involves concentrate production over an 18-month period. Cronos has the option to extend the deal to 24 months.
Since starting its extraction services last year, its demand has ramped up. Its sales grew by 43 percent in the second quarter from the first quarter. It isn’t just satisfied with dominating the market at home. In June, it obtained an import permit from Australia. It’s already started shipping its concentrate products to the Land Down Under.
Trulieve Cannabis (OTC:TCNN.F) was our last month’s top stock pick. It continues to hold its appeal due to its strong growth. Its main market is in Florida. Its network of dispensaries has reached 58 and counting. Trulieve‘s stock has been up 85 percent year-to-date with more room to grow. These are all signs of sustainable growth.
Trulieve currently runs a shop in California and another in Connecticut. It obtained a provisional adult-use license in Massachusetts. With competition heating up in Florida, it must grow to continue its winning streak. While it’s not the cheapest stock of the bunch, it has seen serious stock gains.
Green Thumb Industries
Leading multi-state operator (MSO) Green Thumb Industries Inc. (OTC:GTBIF) is one of the best pot stocks around. It has seen strong growth during the quarter. It opened six new stores. That brings its total to 48 across the country. It strengthened its production operations. It also opened a new manufacturing facility in Ohio.
As a vertically-integrated company, its control of the supply chain creates a reliable product line across its multiple markets. Its diversified product portfolio includes extracts, edibles, flower, and topicals. That gives GTI a greater chance of surviving the market. It’s betting on its reserve of licenses to grow its retail operations into more popular weed hot spots.
Curaleaf (OTC:CURL.F) is a top MSO for medical and adult-use markets. Its vertical integration has helped it reduce costs and compliance risks across its supply chain. As of late, it’s betting on a number of acquisitions to grow its lead. In the second quarter, its sales rose to $117.5 million, a 142 percent year-over-year rise.
Curaleaf’s big sales numbers are due to its large presence in 23 states. It runs a total of 87 stores, 22 grow sites, and 30 processing facilities. Its Select and Grassroots acquisitions will help grow its consumer packaged goods and cultivation revenue, respectively. Curaleaf is quickly becoming a leader in Florida and New Jersey, too.
Pot stocks can be volatile, especially with the current pandemic. While many companies are on the brink of disaster, others are doing the best they can to stay afloat. To stay up-to-date with the latest developments in the industry, follow CTU’s industry blog. To learn the ins and outs of the weed industry, sign up for our online cannabis training program today.