There’s More To Cannabis Than The Recreational Market
It’s hard to remember that there is more to the cannabis market than recreational use and smoking. The cannabis industry has its roots in medical cannabis and that is still a driving force of value today. Today’s list highlights three company’s whose business includes, if not focuses on, the health side of the industry, an industry that is expected to grow at a high 20 to 30% CAGR for the next several years. What makes these companies more attractive is that they trade for pennies compared to their mainstream biopharma cousins.
Heritage Cannabis Completes Transformation
Heritage Cannabis is a small medical cannabis company with business in the recreational and CBD markets as well. The company recently reported a dismal quarter that belied the underlying transformation. The company transitioned from wholesales to purely branded sales over the last quarter and that has had an impact on gross revenue. The Q1 gross revenue of $1.827 million is down 54% from the previous year because of it but this will be the last quarter of difficult comps.
The company has made several acquisitions that will boost revenue and earnings and is on the brink of several initiatives paying off. Among them is an expansion into the U.S. market that includes the launch of three key medical products for the CBD and medical cannabis market. The 1st product slated for release is an AnthroCBD capsule later this month, the others are a sublingual strip and a topical cream all targeting skin conditions like eczema, psoriasis, and local pain.
“As we move forward, we expect to see continued acceleration in both our medical and recreational product divisions with the addition of Premium 5 starting to have a material effect in Canada. Additionally, with our imminent launch in the multi-billion dollar U.S. market, and continued growth from our Pura Vida and Purefarma brands we expect to be well-positioned to drive further positive results and shareholder value,” said Clint Sharples, Chief Executive Officer of Heritage.
HempFusion Wellness, Inc Tackles The Edible CBD Market
HempFusion (OTCMKTS: CBDHF) is a health and wellness company focused on CBD products you can eat or consume. Among the 48 SKUs are tinctures, FDA-approved topicals, Dr./Caregiver product lines, and probiotics. The company just released its earnings as well delivering more than $3.82 million in revenue for 2020 or up 26.5% from 2019. Based on a recent CBD industry report the U.S. market alone is expected to grow by 65% to $25 billion over the next four years so we expect this pace to continue if not accelerate.
With its products on sale in all 50 states, HempFusion is not only a leader in the CBD market but an attractive takeover target for company’s seeking growth, expansion, or entry into the U.S. market. Shares of the stock are trading near the post-IPO low and may head lower although there is risk in that outlook. Not only is the CBD market and this company expected to grow at a robust double-digit CAGR but the market in shares of CBDHF is oversold and beamish momentum is waning.
Can-Fite Cannabis Compound Inhibits Liver Cancer
Can-Fite (NYSEAmerican: CANF) is an Israel-based clinical-stage biopharma researching small-molecule therapeutic products for treating cancers, inflammatory diseases, and other ailments. Among its many pipeline products are a range of CBD-based treatments and one has been proven in a proof-of-concept trial. The company showed that a CBD-rich cannabis fraction was able to inhibit liver cancer growth by interacting with receptors known to activate cancer cell growth. The news, surprisingly, did not move much on the news but we think they will in time. And that doesn’t take into account the company’s two main pipeline drugs, Piclidenoson and Namodenoson.
Featured Article: Understanding Compound Annual Growth Rate (CAGR)7 Stocks That Still Have Upside For Investors to Buy
It can be fun to invest in some speculative stocks. But it should go without saying that those stocks shouldn’t make up the bulk of your portfolio. In fact, it’s important to find a few good stocks that make up the base of your portfolio. These are momentum stocks that are in a strong uptrend.
One way to find such stocks is to look at the most active stocks (or volume leaders). Shares of these companies are among the most traded or have the highest dollar volume of shares traded in a given trading day.
Any stock may crack this list from time to time (for example, when there’s new news about the company). However, stocks tend to find their way on this list consistently that bear watching. That’s because this list indicates that there is pressure among investors to buy or sell the stock. And that makes an investor’s decision very simple.
And that’s the reason we created this special presentation. The stocks on this list are among the most actively traded stocks on the market today. They also share a similar quality. They are coming off strong years in 2020 and seem to be showing some consolidation for another leg up.
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