What Investors Can Learn from the Five Best Cannabis Stocks of 2019

best cannabis stocks 2019

As pot stock investors are no doubt aware, 2019 was not a great year for the industry. While some stocks were able to show impressive growth, most companies are still consolidating their holdings and investing in the future. But to make sure we start 2020 off on the right foot, we’re making sure you know all of the best cannabis stocks of 2019.

These pot stocks not only gained value in an otherwise bleak year, but they all also managed to turn a profit. This is no small feat in the still-nascent cannabis industry.

So if you’re sticking with pot stocks in 2020—and there’s plenty of reason to believe that you should—these are some of the first companies to look at. Let’s see what can be gleaned from their recent success. 

Best Cannabis Stocks 2019: Trulieve (35.18%)

Shares of Trulieve Cannabis Corp. (CSE:TRUL) (OTCQX:TCNNF) started the year at $11.40 and are ending it at $15.43. 

In addition to being the largest fully licensed medical cannabis company in Florida, the company can also boast more  income than any of its competitors. According to its most recent financial results, Trulieve earned $70.7 million from cannabis sales, which converts to $23.4 million in adjusted operating income. 

On December 18, Trulieve opened its 42nd dispensary in Florida. Outside of Florida, the company also operates in California, Massachusetts, and Connecticut.

Best Cannabis Stocks 2019: Innovative Industrial Properties (68.9%)

Based in Maryland, Innovative Industrial Properties Inc (NYSE:IIPR) focuses on the acquisition, ownership, and management of specialized properties. The company leases these properties to state-licensed medical cannabis cultivators.

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IIPR shares were worth $45.91 on the first day of trading in 2019, and are today worth $75.61.

It’s important to note that IIPR is taxed not as a real estate investment trust, not as a cannabis company. This helps it avoid regulations that apply to other pot stocks. 

 

According to the company’s Q3 financial results, Trulieve generated rental revenue of approximately $11.2 million. This represents an astounding 201% increase from the prior year’s Q3 results.

Its adjusted funds from operations came to $9.5 million, or $0.86 per diluted share. On top of that, the company  paid a quarterly dividend of $0.78 per share.

Best Cannabis Stocks 2019: Village Farms (69.87%)

Village Farms International Inc. (TSX:VFF) (NASDAQ:VFF) is up nearly 70% this year, growing from $4.78 to $8.02.

After spending three years growing vegetables, the BC-based company has made a big impact on the cannabis sector. The company’s 1.1-million-square-foot greenhouses (Delta 3) is currently operating at full run-rate output of 75,000 kilos of cannabis per year.

On top of that, a second greenhouse (Delta 2) will also be operating at full run-rate capacity of 75,000 kilos by the end of 2020. On top of that, the company is pushing into the US-based hemp industry with surprisingly quick results.

Best Cannabis Stocks 2019: MediPharm Labs (116.7%)

MediPharm Labs Corp. (TSX:LABS) (OTCQX:MEDIF) is an extraction service, putting it at the center of the cannabis derivatives growth phase. Derivatives include edibles, vapes, topicals, tinctures, concentrates, and infused beverages, and they’re just starting to hit Canadian dispensaries.

This year alone, LABS shares grew from $1.80 to $3.90, making it one of just two cannabis stocks to double in value. 

Throughout 2019, MediPharm secured extraction-service and white-label deals with a variety of clients. Most of these deals are 18 to 36 months in length, which provides some predictability to cash flow in an otherwise turbulent industry.

 Despite having only started its extraction operations in November of last year, the company recently delivered its second consecutive quarterly profit. MediPharm is shaping up to be not only one of the biggest winners of 2019 but also one of the most reliable pot stocks in the industry.

Best Cannabis Stocks 2019: The Valens Company (117.09%)

Just before the end of the year, Valens GroWorks Corp changed its name to The Valens Company (TSXV:VLNS) (OTCQX:VLNCF). According to CEO Tyler Robson, this is a reflection of the company’s growth and transformation over the past few years.

“Growth and transformation” is right on the money. In 2019 alone, Valens more than doubled in value, rising from $1.58 at the start of the year to $3.43 now. This makes it the best-performing cannabis stock all year.

Along with the rebranding, Valens also announced two new multi-year agreements with Emerald Health and Dynaleo. These agreements are sure to continue pushing VLNS stock upward as 2020 starts to take shape.

Here’s hoping that 2020 has better things in store for the cannabis space than 2019. But not matter how the markets go, keep looking for the factors that made these five companies the best performing cannabis stocks of 2019.

Featured image: DepositPhotos © [email protected]

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