Auxly Cannabis Group (OTCQX:CBWTF) (TSXV:XLY) has been paring some heavy losses that it made in December. Following an industry wide-trend, CBWTF stock is climbing back up the charts, currently selling for $0.73 USD.
Is Auxly Cannabis a good play in 2019? Let's have a look.
CBWTF Stock
The marijuana industry gained legitimacy like never before in 2018. A year of history-changing legalizations in Canada and across the US brought investors up very high... before dropping them fast to unprecedented lows.
Despite the law change, most cannabis stocks ended 2018 down to the tune of 20%, 30%, and even beyond 40%. Investors were obviously disappointed, many even bewildered.
Now, we are looking for the survivors among the debris. 2019 is going to be a transitionary year for cannabis, is CBWTF stock a survivor?
The Case for Auxly Cannabis Group
Investors may find the investing and finance cannabis sector to be the dark horse in this over-crowded 'producer' industry. These kinds of stocks tend to go under the radar as they are few and far between; however, they may offer the best opportunity yet to investors.
With a market cap of $432.73 million, Auxly Cannabis Group Inc. is one such cannabis company—with two options: CBWTF stock or XLY stock, depending on which exchange you prefer.
Streaming Enterprise
Auxly is a streaming enterprise in the cannabis industry; it provides financing solutions for smaller licensed producers. Its core revenue comes from licensing and streaming deals with its current portfolio of 15 licensed cannabis producers.
>> Marijuana Penny Stocks in Red: Emerald Health and Canopy Rivers
This business model isn't common and puts Auxly in a unique position to make legitimate profits from multiple areas of this industry and not just one.
Army Knife
The brilliance of this is that the company does not rely on one sector or business to stay afloat. With multiple streams, it has a higher chance of sustainability no matter what political or social change may come its way. The con, however, is that CBWTF stock movement may continually fluctuate based on the failures or successes of its individual clients and not purely on Auxly's operations.
Investing in CBWTF stock might be ideal for those who aren't sure where to put their money in this sector. Like picking a lucky bag from the candy store, Auxly stock may give you potential in different areas.
With multiple streams of revenue at its fingertips, CBWTF stock could see a profitable year ahead. What do you think?
Featured Image: Canva
