Legal cannabis is slowly making its way to households worldwide because of the numerous health benefits the product has. Its rising popularity is helping the sector grow as well. The legal cannabis market is expected to grow up to $22.6 billion by 2021. Because of its unprecedented growth, brokers and investors are now on the lookout for the best pot stocks to invest in.
As with most stocks on the market, pot stocks should be tackled with precaution, and there are a few things to know before making any major purchases. To begin with, pot stocks should be treated as any other in a sense that it is still prone to price drops. The good thing is, there are ways to get into pot stocks without having to risk too much.
The Street says that one stock worth getting into is Action Alerts Plus holding Constellation Brands Inc. The company has recently taken a minority 9.9 percent stake in Canopy Growth Corp., a Canada-based distributor of hemp-products. Action Alerts Plus also has stakes at Corona, Modelo Especial, and Svedka Vodka, meaning that the share price can grow from these alcohol brands too.
By investing in companies that have only a minimal stake in cannabis companies, investors will be able to do away with the risks if the sector does not meet its projected market value by 2021. The chances of that happening are not very likely though, as industry leaders continue to provide quality products to meet the growing demand for cannabis products.
If investing in pure cannabis stocks really is the target of those who trust in the growth of the industry, these two top performing companies are worth considering.
PotNetwork Holding
PotNetwork Holding, Inc. (OTCMKTS:POTN) and its subsidiary, Diamond CBD Inc., are at the top when it comes to the production and distribution of hemp-derived cannabidiol (CBD) and CBD-infused products. Its quality oil acquired through supercritical CO2 extraction allows the company to come up with the purest vape oils, edibles, pet products, and more.
Both companies have proven their mettle in the stock market time and time again. Diamond CBD has had a stellar revenue performance in the previous year, and it rang in 2018 with an amazing first-quarter performance. PotNetwork recently announced that Diamond CBD was able to generate over $2 million in revenue for the month of February. It’s a 480 percent increase from its performance on the same month last year.
As both companies continue to set new records for their revenue sales, their stocks are expected to be on the rise. Many are expecting more broken records in the coming months so now’s the perfect time to become a shareholder in PotNetwork.
Friday Night
Las Vegas-based Friday Night Inc. (CSE:TGIF) (FWB:1QF) is kicking 2018 with a bang. The company recently announced that it is closing a land purchase agreement. Through the deal, it acquires an additional 2.78 acres of land that is to be used for a new cultivation facility for its subsidiary, Alternative Medicine Association (AMA). This means an increased output of cannabis from both entities.
The company also continues to ramp up its sales with amazing numbers. For the first quarter, the company is able to generate $2,464,487, which brings its six-month revenue to $5.4 million. Considering how it is expanding its purposes with the recent land acquisition for AMA, Friday Night’s stocks are expected to go up.
These companies are prime examples of why pot stocks are 2018’s investment plans to consider. Many are optimistic of the sectors unprecedented growth and investing in involved companies is going to be a smart move.
