Here Are the Best Marijuana Stocks in Q2!

best marijuana stocks in Q2

Best marijuana stocks in Q2: At the beginning of 2018, nearly every marijuana stock was down. Pot stocks had climbed a massive amount since 2016, so it was not surprising that they would dip at some point — it was never too concerning. The reality was that the discussion about marijuana was only heating up — total cannabis legalization beckoned across Canada along with some US states, but medical cannabis was legal or becoming legal in more places than not. 

Market demand seemed to be growing, preparing us for an inevitable turn-around in stock and Q2 delivered, at least for half-a-dozen companies who saw no-less than a 23% surge in stock prices.

Some of the most impacted companies of this positive stock hike are listed below, as some of the best marijuana stocks in Q2.

Best Marijuana Stocks in Q2:

GW Pharmaceuticals (NASDAQ:GWPH): Up 23.8%

June 25th saw the FDA approve GW Pharmaceuticals new drug Epidiolex — a cannabis-infused medication used to treat a rare form of childhood epilepsy. This marked the first time the FDA has ever approved a cannabis-derived drug. The drug was always a favorite of the FDA, with its advisory panel giving it a unanimous vote back in April and it was this news that caused shares to first jump.

With Epidiolex officially approved in June along with the potential peak of $1 billion in sales from the drug, it was always going to be an exciting Q2 for GW Pharmaceuticals.

Organigram Holdings (OTCQB:OGRMF): Up 29.3%

There is no major occurrence that signifies why this stock has risen so much in Q2. However, one potential factor was an unexpected expansion which came after considerably higher-than-expected crop yields doubling production capacity. Perhaps the market recognized the potential in this company's performance.

And then there is just sheer value for money: "At just 30 times Wall Street's consensus EPS for 2019, OrganiGram is cheaper than just about any other Canadian grower."  

It seems investors wised up to this marijuana value stock and are getting it while it's hot.

Innovative Industrial Properties (NYSE:IIPR): Up 37.8%

37.8% is a massive growth in one quarter. Innovative Industrial Properties owns six medical marijuana greenhouses across five US states with news of more to come, announced at the end of Q1 — $100 million worth of potential deals to be made.

"The beauty of IIP's business model, other than the $1 per share in aggregate dividends shareholders are receiving, is the predictability of the cash flow. Innovative Industrial is working out 15-year leases for its greenhouses — it had an average lease term of 14.4 years in its most recent quarter — with options for two five-year extensions. This generates predictable annual revenue for a business model that practically has fixed costs with minimal overhead. Investors have learned that if you want a marijuana stock with a dividend, as well as one with a reasonable forward price-to-earnings ratio, then Innovative Industrial Properties is the stock to consider."

MedReleaf (OTC:MEDFF): Up 51.8%

A rise of nearly 52% means MedReleaf had the best Q2 of any other cannabis grower. The reason was more than likely the announcement that Aurora Cannabis (OTCQX:ACBFF) would be buying MedReleaf in a deal worth $2.5 billion. Aurora's aim in this deal is to secure it as the leading grower of cannabis with an estimated yield of 570,000 kgs should the deal be closed with MedReleaf. 

Another consideration for its share hike is the recent completion of a 164-acre property which MedReleaf bought for $21.5 million. This property houses the Exeter facility that MedReleaf will retrofit to grow cannabis. Retrofitting will save time and money, and the facility will mean four-times the annual production yield for the company.

Cara Therapeutics (NASDAQ:CARA): Up 54.7%

Cara Therapeutics is a Connecticut-based drug developer. It is not necessarily marijuana focused, at all. It saw a massive rise in its stock towards the end of Q2 when it announced positive top-line data from a recent study of a new post-operative pain relief compound. Though this study had no focus on cannabis, Cara is known for its CR701 cannabinoid receptor designed to treat pain.

MariMed: (OTCQB:MRMD): Up 104.4%

The biggest gainer for Q2 was without a doubt cannabis consulting services company MariMed. Based in Massachusetts, there has been no definitive reason for such a massive stock jump except for market excitement and word-of-mouth hype regarding companies on the outskirts of the growers, developers, and buyers. 

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Ancillary cannabis companies may simply be the next big thing. When markets are excited and experiencing surges of interest, investors are always wanting to stay one foot ahead of the game by finding those hidden gems. The not-so-obvious ancillary companies may just be that and may explain MariMed's doubling shares.

So there you have some of the best marijuana stocks in Q2! Who will you be keeping an eye on?

Featured image: DepositPhotos.com/SergeyNivens

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