Top 3 Marijuana Small Cap Stocks To Watch
Marijuana is going from the black market to the stock market. And the growth is incredible. According to the Cannabis Industry Annual Report, legal marijuana sales doubled from 2016 to 2019. Also, the report estimates total marijuana sales will reach $24 billion by 2025. Every day the marijuana industry gains more steam, and you can get a piece of the action. Marijuana small cap stocks will help investors make millions.
For now, marijuana is in the growth stage. And that is a great place for investors. If you play your cards right, you could own a piece of the next Microsoft of Marijuana.
Small cap marijuana stocks are a dime a dozen. In an emerging industry there are plenty of companies hoping to hit the jackpot. We’ve hand selected the three best small cap marijuana stocks to watch. There is huge upside potential in these small cap marijuana plays.
Charlotte’s Web Holdings
Charlotte’s Web Holdings (NASDAQOTH: CWBHF) is a small cap stock with a market cap of $1.6 billion. Charlotte’s Web produces, manufactures, and distributes cannabidiol (CBD) products. CBD is becoming increasingly popular because it relieves pain without any psychoactive effects. It is also an anti-inflammatory, pain reliever, and stress reducer. Consumers are interested in CBD, and Charlotte’s Web is in a great position to capitalize on that interest.
By the end of 2018, Charlotte’s Web had its hemp-derived CBD products in over 3,700 stores. That number is about to grow a lot.
Thanks to a new partnership with the grocery giant, Kroger (NYSE: KR) Charlotte’s Web’s products will be on shelves in over 8,000 stores. Kroger is America’s largest grocer with locations in 42 states. Kroger is now the largest single retailer for Charlotte’s Web Holdings’ products.
A deal like this is monumental for Charlotte’s Web. With its products on Kroger’s shelves, its brand visibility is at an all-time high. The CBD space is becoming saturated, so customer exposure is important.
Experts project U.S. CBD sales to grow to nearly $24 billion by 2023, according to Brightfield Group. Charlotte’s Web can make a big splash in the CBD space, and investors should keep an eye out.
Harvest Health & Recreation
Harvest Health & Recreation (OTCMKTS: HRVSF) is one the largest marijuana harvesting operations in the states. The Arizona-based company has grown thanks to its aggressive strategy of obtaining licenses and acquiring other companies. The $1.7 billion company pulled in $19.2 million in revenue last quarter.
Investors undervalue American marijuana sellers like Harvest compared to Canadian peers like Canopy Growth (NYSE: CGC). Why? Because marijuana is still federally illegal in the U.S. and Harvest Health & Recreation is operating in violation of the law. So, Harvest has to raise money through private investments, without help from banks. The FDA has been outspoken on this issue. This puts the company in a unique position. But once legalized, it’s in a position to explode into one of the country’s largest marijuana providers. But, it has to walk a fine line in order to get there.
The company claims to have the largest footprint in the U.S. amongst marijuana harvesters. It operates across 17 states and has 210 facilities, of which 140 are retail locations. That’s a lot of locations!
One analyst believes Harvest Health & Recreation’s stock could double in the year.
Organigram Holdings (NASDAQ:OGI) is one of the hottest Canadian marijuana small cap stocks of 2019. Every marijuana company is scrambling to get out in front of the emerging marijuana trend. But few have succeeded like Organigram Holdings. The company’s success boils down to a few major partnership decisions.
In January, Organigram entered into an agreement with Canada’s Smartest Kitchen, a cutting-edge food product developer. The companies plan to create premium cannabis chocolates. Next, Organigram secured a CBD supplier, and then signed a multi-year contract with Valens GroWorks in order to produce cannabis concentrates. Internationally, the company has positioned itself to dominate the European CBD market through an agreement with Alpha-cannabis.
Organigram’s market cap is $906 million, but it only did $20 million in sales over the last 12 months. The company’s new partnerships make it well-positioned to dominate the Canadian marijuana market, and compete in Europe. Organigram has made many smart moves this year, and it could pay enormously.
Organigram is expected to have rising profit projections over the next year. Long-term investors may find Organigram to be an attractive marijuana small cap stock.