One of the sectors that have enjoyed exponential growth over the past year or so is the marijuana sector and during the period, many of the stocks have gained significantly on the back of heightened investor interest.
It’s necessary to point out that in a fast-growing industry, it’s possible for stocks to rise significantly as well as the industry going through a fair bit of churn. Hence, investors could make significant returns if they manage to choose the right stock. Here is a look at 3 cannabis stocks.
Cannabis Stock To Watch #1: Driven Deliveries
Driven Deliveries (DRVD) focuses on several segments of the cannabis industry. Its leading service is for marijuana delivery in the United States. And this summer has been a busy time for Driven Deliveries. Most recently the company signed 10 brands as part of Driven’s Brand to Consumer cannabis delivery service.
In each of the partnerships, Driven has secured the rights to provide each brand with its own unique and branded e-commerce store with the transaction completed and fulfilled by Driven. Through the 10 branded e-commerce stores, and the Ganjarunner online store, Driven and its brand partners offer more than 500 retail items.
This includes edibles, topicals, elixirs, concentrates, smokable products, storage, apparel and accessories to customers in California. Because California is expected to reach over $4.7 billion in cannabis sales by 2025, the timing of this expansion could be opportune for the company.
Over the last few months, shares of Driven have traded in a range of $0.60 to $1.00 and are currently near the lower end of that range. Since the cannabis industry has started to see a resurgence of activity due to things like new ETF’s going live, the next move for the sector could be exciting to watch.
Cannabis Stock To Watch #2: CannTrust Holdings
CannTrust Holdings (TSX:TRST) (NYSE:CTST) is among the bigger producers of cannabis in the industry but the company had a setback on Monday after it emerged that one of its plants in Pelham had produced cannabis without a license from Health Canada. It happened in the months prior to the company getting its license in March.
5200 kilos of the production from the period is now going to be tested for compliance while 7500 kilos from another plant has been voluntarily held back by CannTrust. The shares fell by 22% on Monday but it should be noted that the company’s facilities are currently fully compliant with Health Canada regulations.
Cannabis Stock To Watch #3: OrganiGram Holdings
The other marijuana penny stock that gained last week due to an unexpected endorsement from one of the titans of the industry was OrganiGram Holdings (TSXV:OGI) (NASDAQ:OGI). The stock surged by as much as 8% after the former CEO and founder of industry leader Canopy Growth Brian Linton picked it as the one company with the potential for the biggest growth in the future.
Linton was voted out by the board of Canopy Growth but when asked about the company he likes, he stated that he had a good experience while dealing with OrganiGram in the past.