Over the weekend, Rich made a quick video to run down the top pot stocks that are already turning a profit. Some of these companies he’s profiled in the past, others are getting a special first shout out today.
Let’s jump right into it. These are Rich’s top four profitable pot stocks that cannabis investors should think about buying.
Pot Stocks #1: Aphria
Earlier this month, Aphria Inc (TSX:APHA) (NYSE:APHA) reported a surprise profit, causing this pot stock to rise 30 percent. This was a double shocker, as not only did analysts project conservative gains for Aphria in the quarter, but most of Aphria’s contemporaries in the sector have actually been in decline throughout summer.
While analysts expected Aphria to raise about $98 million CAD in revenue, the company actually generated $129 million.
“Profitable companies are the ones that people are going to trust,” says Rich. “[Analysts] are forecasting that revenue growth will take this company up to $40. That’s 500 percent from these prices.”
Aphria has one of the largest production capacities of all cannabis companies. The company expects to produce 255,000 kgs of cannabis this year alone.
Pot Stocks #2: Emerald Health
Another pot stock turning a profit is Emerald Health Therapeutics (TSXV:EMH) (OTCQX:EMHTF). This Victoria-based company just recently announced its third consecutive quarter of profitability, with sales increased sequentially 125 percent to $32 million CAD.
“Huge opportunity with Emerald,” says Rich. “I see potential for this stock to go to, like, $20.”
Emerald has a remarkably low cost for production. It’s able to produce a gram of cannabis for just $0.65. Between January and June 2019, the company has sold approximately 12,000 kg. If the price to market ratio continues to look this attractive, Rich just might be right about Emerald’s long-term profitability.
Pot Stocks #3: MediPharm Labs
MediPharm Labs Corp. (TSX:LABS) (OTCQX:MEDIF) (FSE: MLZ) is a company that Rich has been talking a lot about lately. For its Q2 results, the Toronto-based cannabis company announced a 43 percent increase in revenue and a 65 percent increase in gross profit. Adjusted EBITDA was $7.7 million, 79% higher than its previous quarter, and the company’s net income for the quarter came to $1.4 million.
“Love these guys, they’re the leader in extraction companies,” Rich explains. “They go up at least $15 or $16.”
Since the start of August, MediPharm is one pot stock that’s been skyrocketing. On August 1 it sat at $5.29 and within a week and a half had risen to $7.17. As a company that continually exceeds expectations, there’s no reason not to expect it to rise even higher.
Pot Stocks #4: Trulieve
Rich has already called Trulieve Cannabis (CSE:TRUL) (OTCQX:TCNNF) his number one pot stock to watch in August 2019. This was off of some big news for the company that made it one of the top earners in the cannabis space.
“They earned $31 million in profit,” says Rich. “Trulieve is a giant. I see enormous potential with huge upside.”
Headquartered in Tallahassee, Florida, Trulieve offers some of the most impressive operational efficiencies and perhaps the strongest financial discipline in all of the cannabis space. It currently operates a total of 29 dispensaries in the state and is continuing to grow at a rapid rate. Just like the other companies on this list, Trulieve is one business that cannabis investors have to pay attention to if they want to make some green.
What do you think of Rich’s list? Got some pot stocks that you think could be winners? Let us know about them in the comments below.
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