As we continue to work through the inevitable corrective wave in the cannabis space on the heels of the landmark announcement by Canada to legalize marijuana in the middle of last month, we are beginning to separate the wheat from the chaff.
In other words, for traders and investors in the cannabis space, we have a vast supply of pretenders and a decent pool of contenders. Today, we’re going to look at four stocks that we believe represent the cream of the crop in terms of the contenders.
At this point, as we see it, those stocks include: PotNetwork Holdings Inc (OTCMKTS:POTN), New Age Farm Inc (OTCMKTS:NWGFF), Aurora Cannabis Inc (NYSE:ACB), and OrganiGram Holdings Inc (OTCMKTS:OGRMF).
PotNetwork Holdings Inc (OTCMKTS:POTN) promulgates itself as a company that, through its subsidiary, First Capital Venture Co., engages in the research, development, and sale of hemp-derived CBD oil products. It also engages in the pre-owned auto dealership business.
The company sells its products through distributors and resellers, as well as through its Website. The company was formerly known as SND Auto Group Inc. and changed its name to PotNetwork Holdings, Inc in March 2017. PotNetwork Holdings, Inc is based in Fort Lauderdale, Florida.
Diamond CBD focuses on the research, development, and multinational marketing of premium hemp extracts that contain a broad range of cannabinoids and natural hemp derivatives. Diamond CBD’s team consists of hemp industry pioneers and natural product experts, chemists, doctors and scientists, dedicated to producing the finest and purest cannabidiol (CBD) oils.
The result, according to the company, is a robust selection considered among the most powerful natural CBD oils, tinctures, edibles, and vape liquids found anywhere.
It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things.
PotNetwork Holdings Inc (OTCMKTS:POTN) generated sales of $5.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -8.3% on the top line.
In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($334K against $327K).
New Age Farm Inc (OTCMKTS:NWGFF) trumpets itself as an agricultural services company that offers turnkey growing infrastructure and services for the licensed growers and processors of luxury marijuana crops at its agri-campuses in Washington State. The company also, through its subsidiary, Kured, LLC, operates as an online CBD and lifestyle company. New Age Farm Inc. is headquartered in North Vancouver, Canada.
New Age Farm is an agricultural services company offering unique turnkey growing infrastructure and services for licensed growers and processors of luxury marijuana crops at its agri-campuses in Washington State. In November 2012, the Washington State Liquor and Cannabis Board passed Initiative 502 (“I-502”).
New Age Farm Inc (OTCMKTS:NWGFF) pulled in sales of $88K in its last reported quarterly financials, representing top line growth of 1003.7%.
I-502 authorized the WSLCB to regulate and tax recreational marijuana products for persons over twenty-one years of age and thereby created a new industry for the growing, processing and selling of Washington State-regulated recreational marijuana products. New Age Farm provides innovative solutions for growers and processors in this burgeoning industry.
Kured is a wholly owned subsidiary of New Age Farm, acquired in December 2017. Kured is building an innovative online CBD and lifestyle company. Kured has partnered with best in class hemp cultivators, edible manufacturers, cutting edge product formulators to develop, market and distribute multiple lines of CBD products including, but not limited to, CBD vaporizer pens, topicals, gel capsules and more.
All of Kured’s products are 100% THC free and will be available for purchase internationally. THC, or tetrahydrocannabinol, is the primary active ingredient in cannabis.
Most importantly, the stock has been outperforming nearly every top stock in the space. Given the growth potential ahead, this is an important and striking idea.
Aurora Cannabis Inc (NYSE:ACB), through Aurora Cannabis Enterprises Inc, trumpets itself as “one of the world’s largest and leading cannabis companies” and a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR).
The Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, known as Aurora Mountain, is currently constructing a second 800,000 square foot production facility, known as “Aurora Sky”, at the Edmonton International Airport, and has acquired, and is undertaking completion of a third 40,000 square foot production facility in Pointe-Claire, Quebec, on Montreal’s West Island.
In addition to the Company’s rapid organic growth and strong execution on strategic M&A, which to date includes 15 companies – MedReleaf, CanvasRX, Peloton Pharmaceutical, Aurora Deutschland (formerly Pedanios), H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia Labs, HotHouse Consulting, Agropro, Borela, and the pending acquisition of ICC Labs – Aurora is distinguished by its reputation as a partner of choice and employer of choice in the global cannabis sector.
The company has invested in and established strategic partnerships with a range of leading innovators, including: The Green Organic Dutchman Holdings Ltd. (TSX: TGOD), Radient Technologies Inc. (TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), Namaste Technologies Inc. (TSXV: N), Evio Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), and Alcanna Inc. (TSX: CLIQ).
This massive list of strategic investments has caused some to call it the Berkshire Hathaway of the cannabis space.
OrganiGram Holdings Inc (OTCMKTS:OGRMF) is a TSX Venture Exchange listed company whose wholly owned subsidiary, OrganiGram Inc., is a licensed producer of medical marijuana in Canada.
OrganiGram is focused on producing the highest quality, condition-specific medical marijuana for patients in Canada. OGRMF’s facility is located in Moncton, New Brunswick and the Company is regulated by the Access to Cannabis for Medical Purposes Regulations.
The company’s own portrayal of its market positioning runs as follows: “From the day we started back in 2013, it’s been about making lives better – for our clients, our people, and our community. We’re based in Moncton, New Brunswick, the heart of the Maritimes, but at OrganiGram Holdings we’re committed to improving the quality of life for Canadians across the country. For us, this means working with health-care providers and industry organizations, supporting research and education, and providing a safe, effective product.”
“To be effective in that last goal, we made a decision to produce organic cannabis. Growing certified organic medical cannabis isn’t easy, in fact, most licensed producers won’t take this on. It means more care, more testing, more rules… but in the end, it means a product that we feel delivers on our goals in the best way. And improving the quality of life for Canadians is not just about getting safe, quality product to them effectively. It’s about creating jobs, being good neighbors and contributing to our community.”
OGRMF has had a rough past week of trading action, with shares sinking something like -14% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -34%.
OrganiGram Holdings Inc (OTCMKTS:OGRMF) managed to rope in revenues totaling $3.7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 94.3%, as compared to year-ago data in comparable terms.
In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($155.8M against $9.1M).