Every month Rich picks his top ten cannabis stocks that are best-positioned for growth. His December list held a lot of winners, and now he’s back for the first top ten list of the new year.
“This entire list is of companies in the cannabis sector with a positive adjusted operating income,” Rich explains. “If you don’t have a positive adjusted operating income, I’m not going to talk about you. You’re not going to be in my top ten.”
Let’s get started, shall we?
Cannabis Stocks to Watch: #10–#8
10. Planet 13 Holdings Inc. (CSE:PLTH) (OTCQX:PLNHF)
Rich Says: “This is a company I love. They’re creating a cannabis experience in Vegas. In addition, they have a good business, generating $500,000 in adjusted operating income.”
9. Alcanna Inc. (TSX:CLIQ) (OTCPK:LQSIF)
Rich Says: “$0.9 million in adjusted income, so I think Alcanna is flying under the radar right now. Nobody’s really talking about them. They’re the third-highest operating income performer.”
8. MariMed Inc. (OTCQX:MRMD)
Rich Says: “$1 million in adjusted operating income, despite the fact that, again, almost nobody talks about them. These guys are moving in the right direction.”
Cannabis Stocks to Watch #7–#5
7. GrowGeneration Corp. (NASDAQ:GRWG)
Rich Says: “These guys just moved up to the senior exchange. They have stores in America that sell products to the cannabis growers. So as more people enter the business, they’re going to go to GrowGeneration to get lighting, to get soil, and all the tools they need to get their cannabis. GrowGen is positioned to be an absolute beast in 2020. $1.1 million in operating income.”
6. C21 Investments Inc. (CSE:CXXI) (OTCQB:CXXIF)
Rich Says: “This company has a lot of upside and a lot of potential. They have $1.2 million in adjusted operating income and once again nobody’s talking about them.”
5. Village Farms International Inc. (TSX:VFF) (NASDAQ:VFF)
Rich Says: “These guys have a tight float and room to grow. They were a winner in 2019 and I believe they will be a winner in 2020. They generated $4.6 million in adjusted operating income.”
Cannabis Stocks to Watch #4–#2
4. MediPharm Labs Corp. (TSX:LABS) (OTCQX:MEDIF)
Rich Says: “Don’t sleep on LABS. They are an absolute monster. MediPharm brought in $5.4 million in adjusted operating income. They’ve been a huge success story and I believe they continue. On top of that, they’ll be on the senior exchange in America in just a few weeks. LABS will explode sometime in 2020, so the only question is, will you own LABS before it blows?”
3. The Valens Company (TSXV:VLNS) (OTCQX:VLNCF)
Rich Says: “I absolutely love Valens. $5.5 million in adjusted income. This is a company that is showing great profit—$22 million if annualized—and I believe quarter-over-quarter we’re going to see substantial growth.”
2. Innovative Industrial Properties Inc (NYSE:IIPR)
Rich Says: “I love this company. These guys are a real estate trust for cannabis companies in America. They buy and sell real estate and made $6.8 million in adjusted operating income, and they pay a dividend. IIPR needs to be on your watch list. The big boys on Wall Street are watching and talking about IIPR.”
The Number One Cannabis Stock to Watch in January 2020
Topping this month’s list of cannabis stocks to watch is Trulieve Cannabis Corp. (CSE:TRUL) (OTCQX:TCNNF). TRUL has topped every one of Rich’s lists for the last six months, save for the November top ten. Looking at the company’s earnings— $23.4 million in adjusted operating income—it’s not hard to see why. This Florida-centric company keeps proving that it deserves to be at the head of the pack.
What do you think of Rich’s list? Will January 2020 be a big year for cannabis? Let us know your plans for this industry.
Featured image: DepositPhotos © leszekglasner