Cannabis stocks have been showing promising signs for 2019. Some companies are running away with the gains since the calendar turned over. In particular, Namaste Technologies and Newstrike Brands are two stocks you should have on your radar this year, for that reason. Both are making impressive moves and could be favorable plays for your portfolio.
Cannabis Stocks You Need to Know About: Namaste Technologies
After dipping to new lows in December, Namaste Technologies (TSXV:N) has been climbing back up the charts at an exponential rate. Since January 1st, this cannabis stock has more than doubled, growing from $0.80 to the current price of $1.65 USD.
Yes, the start of 2019 has been a win for Namaste Technologies, and it is a sign of things to come. Namaste is a popular company, showing high trading liquidity and constant media speculation.
Operating a unique business model, its online cannabis ‘everything’ store, CannMart, is just that, an online platform offering all you could need for cannabis consumption. As the company’s main revenue driver, this platform is either going to be its holy grail, or it will be its downfall.
Namaste’s success lies in its ability to hold firm in a tough e-commerce market with continuing players entering the fray. E-commerce gives the cannabis stock instant global reach and the ability to quickly set-up shop in any new legal jurisdiction. However, it will have its work cut out for it should an already dominant e-commerce force (Amazon *cough*) decide to start dealing in cannabis.
So is its business model too niche? Or is it onto a winner by being niched? You decide.
As it stands, investors are showing confidence in N stock in 2019, and it is climbing again… fast!
Cannabis Stocks You Need to Know About: Newstrike Brands
Another gainer on the radar is Newstrike Brands Ltd (TSXV:HIP). HIP stock was up 22%, selling for $0.52 CAD at the close yesterday.
22% in gains should have you chomping at the bit. It’s no surprise; the company’s subsidiary, Up Cannabis Inc, has been chosen to supply the Canadian province of Manitoba with recreational cannabis to licensed private sector retailers.
Investors love this type of acceptance. If your brand is being picked up by a province’s regulatory body, then you are onto a good thing. It proves you deliver a quality product, can meet demand and are well-liked. For this cannabis stock, it offers constant demand for its product and therefore consistent revenue streams. This tends to mean increasing stock prices, and everybody wins.
The Bottom Line
The latter-half of 2018 set shockwaves across the market; the entire market went through one hell of a selloff. But 2019 looks to be offering a changing wind with cannabis stocks heating up again.
Featured image: Depositphotos © leungchopan