At the start of the week, Rich brought you his top ten stocks to watch this month. The list detailed gold and biotech stocks, and even one stock in the cannabis sector. Today, Rich is focusing exclusively on pot as he details his three best cannabis stocks that viewers should keep their eyes on.
These three companies are showing that the cannabis industry can be profitable. Let’s see which pot stocks make Rich’s list for March 2020.
Best Cannabis Stocks: The Valens Company
Rich already profiled The Valens Company (TSXV:VLNS) (OTCQX:VLNCF) when it released its fourth-quarter earnings results at the end of February. These results cemented VLNS as a revenue leader in the industry.
Quarterly revenue jumped 86% to reach $30.6 million, and annual revenue came in at $58.1 million. The company also reported revenue of $1.25 per gram, which is giving it an edge over both high-priced competitors and black-market cannabis.
“I love this stock, and I think Valens is going to go way higher,” says Rich. “The average price target from analysts is about $8.00. So I think the upside is way higher.”
Best Cannabis Stocks: MediPharm Labs
MediPharm Labs Corp. (TSX:LABS) (OTCQX:MEDIF) is down a staggering 42.7% for the year-to-date. Its current price, $2.36, isn’t far removed from its 52-week low of $2.19. So if this is a stock you’ve had your eye on, now might be an opportunity.
“I love LABS, it’s an extraction play like Valens,” Rich explains. “These are the two most profitable companies in the cannabis sector right now.”
Earlier this week, Medipharm announced that Shoppers Drug Mart—the leading pharmacy retailer in Canada—selected it to supply cannabis concentrate products to medical patients nationally through its online platform Medical Cannabis by Shoppers. The agreement is for a three-year term and is subject to renewal for an additional two years.
MediPharm is scheduled to release its Q4 and full-year 2019 results on March 30.
Best Cannabis Stocks: Aphria
Back in January, Aphria Inc (TSX:APHA) (NYSE:APHA) had just received a $100 million strategic investment. Since then, APHA stock has tumbled nearly 40% and now sits at $4.22. Like the other stocks on this list, it’s nearing its 52-week low, $4.15.
Still, TipRanks calls Aphria “the prime investable stock in the sector with the best combination of facilities, revenues, and cash on the balance sheet.” Rich is equally bullish on its current and future value.
“I think Aphria is a giant, a money monster. It’s money in the bank,” he says. “I love these prices—you can see it was around $10 last year, so I think the current upside is tremendous.”
In February, Aphria reported its Q2 earnings, which saw a net loss of $7.9 million. This is down from a profit of $54.8 million the year earlier.
Looking ahead, the company will begin production in Germany by the end of the year. It has already signed a deal to supply one tonne of cannabis to the German market every year. APHA is confident it will achieve a higher price per gram in Europe than it currently has in Canada.
What do you think? Are VLNS, LABS, and APHA the best cannabis stocks on the market today? Keep watching RichTV Live for more updates and lists!
Featured image: DepositPhotos © Yarygin