With much volatility surrounding marijuana stocks, it can be tough to know which marijuana stock to buy. As some may know you only have a handful of options to minimize your risk when investing in cannabis stocks. It’s not so much a given pot stock per se but rather understanding the market. Having a grasp on the market along with proper due diligence offers a better chance to see some gains. Being that most cannabis stocks are more short-term plays than long-term in some cases volatility can work in a trader’s favor.
For the whole month of November, marijuana stocks reached new highs.
This is partly due to marijuana stocks posting Q3 reports which for most of them have been positive results. As the House of Representatives prepares to vote on cannabis reform this week the market may be in for a rollercoaster ride. Cannabis reform on a federal level is long overdue and if this vote passes this will be a game-changer. Known as The More Act this bill would officially remove cannabis as a scheduled 1 narcotic. If this bill can pass the entire industry and market will have a great deal of opportunity behind it. Overall the sector looks like it’s performing well with much promise of continued momentum.
Village Farm Inc. is an interesting marijuana stock with a valuable position in the cannabis industry. The company is known as a leader in greenhouse cultivation solutions across the USA and Canada. They set up and run greenhouses and is the longest-running company to do so. Village Farm is a vertically integrated produce supplier with the ability to produce a large quantity of cannabis. And if cannabis becomes federally legal in the future Village Farm may find themselves in a better position heading into 2021.
In recent news, Village Farm Inc. announced that its subsidiary Pure Sunfarms has entered into an agreement with Medical Cannabis by Shoppers Inc., a subsidiary of Shoppers Drug Mart Inc. This deal will allow Pure Sunfarms to stock the shelves of Medical Cannabis by Shoppers™ with Pure Sunfarm’s high-quality cannabis products.
“We are proud to partner with one of Canada’s largest and most respected retailers to provide Canadian medical cannabis patients nationwide access to the same high-quality products that have made Pure Sunfarms one of the best-selling cannabis brands in our market,” said Mandesh Dosanjh, President and Chief Executive Officer, Pure Sunfarms. “This partnership lays the foundation for both companies to realize future opportunities as the retail and medical cannabis landscape evolves in Canada.”
This supply agreement in along with the company posting its Q3 earnings has created an uptick in trading. Actually over the last month from the end of October to November 25th VFF stock is up 133% in trading. As things look good for the company heading into the new year VVF stock may be a pot stock to buy in 2021.Top Marijuana Stocks To Watch: Neptune Wellness Solutions Inc. (NEPT)
Neptune Wellness Solutions Inc. is hard at work when it comes to product development and supply chain solutions for the cannabis industry. Through Forest Remedies and Ocean Remedies brands, the company offers consumers hemp and CBD products. In recent the news the company has announced they have secured its first purchase orders of Neptune inhouse developed Cannabis brand Mood Ring™
The company’s Mood Ring™ products are High CBD Oil and High CBD pills in a capsule form.
“In Canada, Neptune anticipates further purchase orders imminently, following the signing of a supply agreement with Ontario Cannabis Store (OCS), the wholesaler and sole online retailer for recreational cannabis in Ontario, for the sale and distribution of Mood Ring™. The Company is now working with additional provincial boards to register products and increase the distribution capabilities for Mood Ring™,” said Mr. Cammarata.
Currently, the Company is preparing for more developments with cannabis and global hemp. Just like many other cannabis companies Neptune is waiting for marijuana to become federally legal in America. As well, the company has plans to open a Florida-based office in March 2021. This new office will be so the company can concentrate on U.S. legislation matters concerning Cannabis. Although the company has underperformed for most of the 2020 year there is still time to turn things around. Hopefully, the conusmer side of Neptune’s operation provides more profitability to offset any market losses. NEPT stock has investors unsure just how the company will proceed in 2021. Yet, some believe the long term may work out for Neptune.