Cresco Labs Stock Surges Into 2021
Cresco Labs stock is making headlines for its explosive start to 2021. The rapidly growing cannabis and medical marijuana company is shaking up the market to start the year. However, is Cresco Labs (OTCMKTS: CRLBF) a good buy for investors?
Cresco Labs Stock Outlook
Cresco Labs was founded in 2013 and it’s currently headquartered in Chicago, Illinois. The business, much like other pot stocks, has taken advantage of the ever-growing list of states to legalize marijuana.
In fact, some investors believe it’s only a matter of time before marijuana is legalized nationwide. As of now, Cresco serves nine states including California and New York.
And Cresco Labs stock trades on multiple markets. You can purchase shares on the Canadian Securities Exchange under the ticker symbol CL. In addition, the stock trades in over-the-counter (OTC) markets in the United States under the ticker symbol CRLBF.
An over-the-counter market, or off-exchange, is trading done directly between two parties without the supervision of an exchange. And nearly 50% of all stock trades were made off-exchange in 2020.
Cresco Labs is currently trading for just over $10 a share on the OTC market. This may not seem like much, but the company has seen major stock growth over the past few months. It was below $5 for much of 2020. It’s currently trading for over $13 a share on the Canadian Exchange as well.
Cresco Labs Mission and Products
It’s Cresco’s mission to “normalize, professionalize and revolutionize cannabis.” And the company has made major strides forward due to legalization efforts across the country.
Cresco Labs stock is sure to benefit from the cannabis boom that isn’t going anywhere anytime soon. But the company also has a range of products that consumers love.
From edibles to softgels, you can find many Cresco brands at dispensaries and retail locations in various states. These brands include Remedi, Mindy’s, Good News, High Supply, Floracal Farms and Wonder Wellness.
For example, Remedi specializes in wellness-minded cannabis. Mindy’s, on the other hand, produces restaurant-quality edibles and oils from award-winning chefs.
How to Buy Over-The-Counter Stocks
OTC stocks usually don’t meet the requirements needed to trade on a major exchange such as the New York Stock Exchange (NYSE). However, you can still purchase Cresco Labs stock via major brokerages.
This includes TD Ameritrade, Webull and TradeStation. The broker and dealer negotiate directly between one another through the computer or over the phone. Furthermore, these stocks are governed by the Financial Industry Regulatory Authority (FINRA).
However, it’s important to understand the risks of buying OTC stocks. These companies generally trade over-the-counter for a variety of reasons. For example, these reasons may include:
- A new company that was just created
- Companies with bad credit
- A company with little to no profits
- Companies that provide less accounting information than regular exchanges
These are much smaller companies and your investments will give you a larger stake in the business. But it’s important to do your research before investing. Moreover, the lack of liquidity can make it difficult to sell these stocks after you make a purchase.
Cannabis Stocks on the Rise
Pot stocks have become a major point of interest for investors in America. This is due to the cannabis boom and legalization efforts. And you don’t want to fall behind and miss out on the next big stock market mover.
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The Cannabis industry is preparing for a massive year and so should you. Keep a close watch on Cresco Labs stock going forward.